Peter Leeds: Penny Stocks For Dummies

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This is a great book. The author has a very good reputation and what he says and explains in the book is solid. No nonsense, no lies, no misrepresentations. The author candidly admits the risky nature of penny stocks, and attempts to explain how to undertake fundamental analysis of the penny stocks to separate the junk companies from those that have real growth potential.

The book’s 15 chapters are pretty comprehensive about explaining what fundamental analysis is:

• Chapter 1 - Getting to Know Penny Stocks
• Chapter 2 - Deciding if Penny Stocks are Right for You
• Chapter 3 - Buying and Selling Penny Stocks
• Chapter 4 - Avoiding Promotions, Scams and Bribes
• Chapter 5 - Developing a Strategy
• Chapter 6 - Doing Your Research
• Chapter 7 - Picking a Winner
• Chapter 8 - Trading Strategies
• Chapter 9 - Fundamental Analysis
• Chapter 10 - Financial Ratios: Comparing Apples to Apples (Price to Sales or P/S ratios, Quick Ratios, Current Ratios, etc.)
• Chapter 11 - The Abstract Review in Penny Stocks
• Chapter 12 - Technical Analysis with Penny Stocks
• Chapter 13 - Ten Rapid Result Tactics
• Chapter 14 - Ten Trading Truths
• Chapter 15 - Ten Key Considerations for Companies

If you are managing your own investments, want to consider investing in penny stocks, and do not know much about fundamental analysis of penny stock companies or how to do it on your own, this is a good book to get you started. Like all the Dummies books, aimed more towards beginners, it is relatively easy to understand. I highly recommend it for those just getting interested or started. Another pleasant surprise is that Peter Leeds is pretty easy to contact on most social media platforms and he actually responds to people. This book would also be helpful if you are depending upon somebody else to alert you to good or high quality penny stocks, as your knowledge of how to do fundamental analysis would enable you to better research on any recommendations you get through newsletters and picks.

But this book is not for everybody, though. If you are an experienced penny stock investor and know how to research stocks and perform fundamental analysis, you probably have little need of this book. Likewise, if you want to just trade penny stocks, based on technical instead of fundamental analysis, this book will be of little help to you as only one chapter deals with technical analysis (and the author explains why technical analysis often does not work with penny stocks).

Penny Stocks for Dummies is smaller than the typical Dummies book. Written specifically as an introduction to the subject for the novice investor, the book takes a fundamental approach to evaluating penny stocks. Unfortunately there is a lack of specifics on where to find good penny stock brokers and notable examples of penny stock scams and frauds. In the end, to do well in the penny stock universe requires the same attention to detail and careful and consistent application of principles and techniques that work well in more traditional equity investing.