How to make money in penny stocks for dummies is easy once you take a close look at what sectors are hot in the market right now. For example, we can see as investors that commodities have been enjoying a strong rally for the last six months. Recent events in Japan, and the collapse of the European currency have given the commodity rally a much longer longevity then it would have had, have conditions been otherwise.
People have rallied back to stocks, but at the same time they are increasing portfolio holdings in commodities and particularly raw materials such as gold silver copper and uranium. This is especially so for China which has been using precious metals as a hedge for the American debt that it owns. We already have discussed the China and America connection in previous penny stocks for dummies posts.
China is also adding to the commodity rally, because it is becoming more and more industrialized every day. It is also storing commodities in preparation for the coming industrialization of countries like India and Pakistan. Without access to raw materials no country can fully develop, or develop at the pace that it wants to.
We can use this information to make money in penny stocks by investing in Chinese companies that mine and export raw materials. Particularly Chinese companies that deal in rare Earth metals and precious metals such as gold and silver. This is how to make money in penny stocks for dummies.