Penny Stocks

1. Penny Stocks – Gambling with PurposeYou hear investors talk about investing in the stock market all the time. They point to the fact investors who stick with their stock portfolios for the long haul almost always makes a profit. Penny stocks are the flip side of the coin. You need to practice the strategy of getting in quick and moving on just as quickly. Penny stocks are the wild card of stocks, a gambler’s delight.Strategies to Increase Your Winning Hands in Penny StocksJust because penny stocks are inexpensive does not mean you should be gambling blindly. Great poker players understand the cards in their hands, keep an eye on the cards which are face up, and take calculated risks. As an investor in OTC penny stocks you must do the same thing.You start off by studying the facts about any company you are considering investing in. What have the buying and selling trends been for the stock? Does it consistently trade in high volumes? Are there current financial reports available, and how do they look? Has the company been in the news lately in either in a positive light or with very negative news?Answering just those few simple questions can help you determine if the stock is worth taking a risk on. If the stock is trading in only small volumes you should probably steer clear. It will be hard to sell rapidly when you are ready to take your profits and move on. If the company is currently riding out negative news but their stock has stayed steady, you may want to avoid the stock, also. It could be a stock ready to take a rapid dive in the value. On the flip side, if there has been press releases and positive news about the company which has not resulted in immediate gains, it may be a great opportunity if all other factors do not bring up stop signs.

3. Is Your Gambling Strategy Holding or Folding?Almost any highly successful penny stocks trader is going to tell you they fold their hands quickly. They take profits fast and losses even faster. They jump out of a penny stock before it can tumble to zero. If you want to play the longer term strategies of holding onto stocks and riding out the storms it is best to move over to high value, big board stocks instead of dealing with fast paced volatile over the counter penny stocks.Always purchase your stocks with an exit strategy in place. Set a profit margin you wish to achieve and a loss level you will not fall below. When those triggers hit, take your profits or losses quickly. This helps you hold onto your money and increases your odds of finding more winners and avoiding losses.Penny Stocks - The Low Buy-In Game with High RiskAlways keep in mind penny stocks are the equivalent of joining a game of poker with a professional for a low buy-in. You need to watch your cards closely. You need to be prepared to play for the win, but know when to fold. Do not take your eyes off the game for a moment, or you may be surprised to discover your money has disappeared.It is a fun, fast-paced, high reward game. Take time to learn how to play the Penny Stocks game properly, and you will come out on top.