1. Understand when it is time to let go. Like cards, you have to know when to fold.
2. Do you homework by reading online newswires such as Zacks, CNBC, MegaPennyStocks, etc. Watch for changes in management, press releases, new products, or a new contract.
3. Use online stock screens. Your broker can help, but always do your own research.
4. Study hot markets and trends. Which industries are growing and which are on the down-slide?
5. Evaluate how you are purchasing your stocks. Brokers can be more expensive than buying online. Look into ETrade, Scottrade, Xecco, TDAmeriTrade, TradeKing, and Fidelity.
6. Set your limits and your budgets. Decide daily/weekly how much stock to invest in.
7. Regardless of the stocks promise, never invest more than you can afford to lose.
8. Understand the risk involved with each investment.
9. Hold your penny stock broker accountable, and be willing to move on if it is not the right fit.
10. Emotion and trading do not mix. Leave the emotion out of it or you’re likely to be on the losing end.