My Student Jonas’s Guide to Penny Stocks

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I know you all love hearing from me, but today, I’m going to do something a little different. I’ll be back with more of my own content next time, but now, I’m turning the floor over to Jonas Ogren – aka, The Swede. I haven’t talked about Jonas much here before, but believe me, you’re going to be hearing a lot more about him in the future as he just emailed me the other day saying he had reached $100,000 in trading profits!**

Download this short guide to penny stocks.

Jonas joined my trading challenge back in 2014, after he’d been trading in Sweden’s stock market since 1990. Before joining up with us, his biggest win was making 10X his starting capital over the course of February to September 2013. Seeing those big gains led him to look for more courses that would help him become an even better trader, and that brought him to my YouTube channel HERE.

Before Jonas joined the challenge, he watched all of my free youtube videos so that he could learn as much about me as he could before signing up (definitely a smart move I’d recommend to all of you reading this). What he found was that the trading methods I teach here on are totally different from everything he’d done before in Sweden. But because he was open to the new opportunities he found, Jonas has been able to find better and better trades thanks to my teachings. He’s also been able to open two new companies (on top of the construction company he already owns) and become a financially-secure father – all thanks to penny stocks.

Jonas had some great tips on how to get started if you’re new to penny stocks, so I asked him to put together a basic guide to penny stocks. You can download the whole thing at the link in the tweet below, or you can check out a summarized version below:

How to Begin

There are several different ways to start learning penny stocks:

  • You could start by looking at some of Timothy Sykes’s DVDs to learn before you open up an account with a broker.
  • The second way is to open up a brokerage account. You can even fund the minimal amounts required on a margin account, if you are averse to risk. Even if you aren’t going to trade right away, the benefit to having a good online discount broker is you can watch the markets and data in real-time.
  • If you don’t want to trade with real money, you can always practice with a broker that offers simulated/paper trading.
  • If you’re really serious, the fourth way to start trading stocks is to just join the Millionaire Challenge. With this plan, you’ll get a DVD folder with 48 DVDs, access to two chatrooms on, about 3,500 recorded online videos and access to 3-4 weekly 1-2 hour live webinars with Timothy Sykes and his millionaire students. On top of all that, you’ll get a new video each day about the trading day and Tim’s watch list.

This is a huge program that I chose to go for directly, since I had been trading in Sweden for many years. The challenge is by initiation only, so it may not be the right fit for everyone.

Many have asked me about the amount of money you’ll need to start with, and it all depends on the broker you use. Tim’s teachings are optimized for smaller and medium accounts, though, so you can start small like this.

Here’s how to put all of that together and get started:

Step #1 – Start by watching all of Tim’s free videos

Watch them, and get excited and to start learning.

Step #2 – Start to buy as many DVDs as you can

In particular, I recommend Penny Stocking and Penny Stocking Part Deux.

Those two DVDs will show you how to trade Tim’s strategy, though there are plenty of other great options to choose from as well.

Step #3 – Open your first broker account and start easy by paper trading

For best results, trade only the amount you have for real trading in your paper trading portfolio. For example, let’s say you have $5,000 in your bank that you’ll start to trade with later on. When you trade on the paper trading account, only use that same $5000 to trade with.

If set up a paper trading account with some crazy high number, it won’t be the same when you get to trading with real money. Here’s why…

Let’s say you buy a stock called XXX. It’s trading at $1, and you buy 1000 shares. The stock would have to move up so that you will cover the cost of the commission alone. Commissions are typically $4.95 per trade, so to have a profit, you’ll need to cover your commission on the buy and sell of the trade.

You buy the stock XYZ 1000 shares at 1$ = $1,000

Buy commission =$4.95

Sell commission = $4.95

Then, you sell all your 1000 shares of XYZ at $1.1 = $1100

$1100 – commissions = $1090

You’ve now made $90 on that trade. (You’ll also need to pay tax on your earnings, which will be different based on where you live).

Basically, the larger the number of shares you buy on a stock, the lesser the price need to go up for you to start making money. You can then buy and sell all the stocks faster and just look for smaller price movements.

If you would’ve used more money from the paper trading account, it would have looked too easy to make money, which is why you should only paper trade with the amount you have in real money. You need to learn the basics. It’s all about learning and not playing, since this isn’t a game. Someday, it’ll be YOUR money that you’ve worked for.

Here’s a link for opening up a paper trading account:

And here’s a guide to understanding what paper trading is and how to use it:

When you sign up there, you’ll get a 60-day trial period. Once your account is set up, you can download the trading platform. Any questions you have on using it can be answered in a call or through email or live chat.

Here’s a link from youtube on how to buy and sell with your paper trading account:

Step #4 – Start trading for real

Once you’ve watched Tim’s DVDs and you’ve been test trading for, let’s say, 2-4 months, your paper trading account should have grown to a nice account. You get profits every week, and you don’t chase stocks to trade.

At this point, it’s time to fund your account. These are a few of my favorites:

All the different brokers have different amounts and rules to have a trading account. Also, there are several different types of accounts you can choose from, depending on how you want to trade.

If you just want to buy stocks and sell them if they go up, then you need a regular account. If you want to short trade stocks you will need a margin account. As a word of caution, always trade with money you’ve saved and that you don’t need for rents and bills.

Step #5 – Join Tim’s plans and learn even more about trading

As you get more sophisticated with your trading, you’ll want to expand your knowledge so that you can get even more wins.

Tim offers 3 plans that you can choose from, including:


TIMalerts provides a great bang for the buck with daily watch lists, chatroom access and real-time trading alerts.

PennyStocking Silver

The most popular plan is Tim´s PennyStocking Silver plan, as you receive access to not only to his chat room, daily watch lists and real-time trading alerts, but you also receive daily video watch lists, access to his 1,500+ video lesson library and new video lessons weekly.

Tim´s Millionaire Challenge

Tim´s Millionaire Challenge is something you’ll have to apply for, and this is the most comprehensive plan you can choose (and the best one, in my opinion).

I recommend taking a look at the following resources:

  • Real-time scan and level two software – StocksToTrade. StocksToTrade is probably the best stock screening software out there. It has everything you need to find stocks to trade, such as the ability to monitor news, set alarms, find top gainers, and much much more.
  • Stock screeners without real-time feeds and level two – FinViz and Stockfetcher. Stockfetcher is just $25 per month and you can add filters that you make (or that you find in forums).

Keep an eye on these resources as well when it comes to finding top gainers and premarket /aftermarket moving stocks:

So that’s it for Jonah. Do you have a question for him? Leave it below, or join the Millionaire Challenge where you can work with him directly!