Best Penny Stocks to Buy.
Best Penny Stocks. Penny Stocks is a business, and you need to develop a clear plan of attack. A “business plan” if you will. The most important factor to consider before speculating in the Penny Stock market is that you must establish a trading plan and not deviate from it.
Greed is the cause of deviation. If you are able to stay focused and follow your trading plan, the you will become a successful trader.
Follow these 2 simple rules that are easy for anyone to remember and will help you lock in a profit.
RULE 1. Learn to accept many small losses. Money cannot consistently be made trading every day-week-month of the year. Whenever you trade into a losing position, take the loss and move on. NEVER add to a loosing position. Wishful thinking will get you in deep sh*t and must be taken out of your mind.
RULE 2. Lock in your profits. Once you relize a capital gain and see the stock starting to loose some of its steam, or reach the HOD, then it’s time to sell. Simple rule to rember when locking in profits always take half. So if I’m up $2,000 on the day. I lock in half my profits by selling half of my position, and keep the other half to ride the wave. Remember to set a stop loss on the remaining position to protect your profit.
Penny Stocks are very volatile and you can see your profits evaporate in a matter of minutes if you are not careful. If you are up, sell and move on to the next trade. You don’t want to be the last guy holding the bag when the penny stock promotion is over!
Also, You don’t want to make $20,000 one week only to see all your hard work go by loosing it all the next week. Follow this strategy to make money on the best penny stocks and you will thank me at the end of the year.