1 / 6

What is penny trading and how to succeed at it

Penny trading is an alluring investment because penny stocks do not cost much. The gains you can make are quite substantial. However, the opposite is sadly true as well. For more detail visit here@ http://immaculatestockalerts.com/<br>

immaculatestocks
Download Presentation

What is penny trading and how to succeed at it

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. What is penny trading and how to succeed at it?

  2. Penny trading is an alluring investment because penny stocks do not cost much. The gains you can make are quite substantial. However, the opposite is sadly true as well. However, to earn big with penny trading you need to know how to play the game. To succeed at penny trading, consider the following tips: Focus on penny stocks with concrete earnings patterns: Do not invest in penny stocks as if they are lottery tickets. This is a formula for failure. Profitable penny stocks are those that demonstrate consistent earnings growth and make 52-week highs. To pick such stocks, you will have to do some research. You can learn about these stocks from reliable penny stock newsletters.

  3. Sell Quickly: The possibility of making 20 to 30% within a few days is what draws many people to penny stocks. If you experience this kind of a profit, sell immediately. Don’t fall into the temptation of wanting more. It is quite possible your penny stock may be getting pumped. Grab what you’re getting and sell. Trade high volume stocks only: Look for stocks that trade for a minimum of 100,000 shares a day. If your penny stock has a low volume, it will be difficult to sell. Always be aware of the quantity of shares and their dollar volume.

  4. Employ Mental Stops: Since bid-ask spread on several stocks can run high, up to 10%, a hard stop-loss can cause monetary losses. They definitely require more concentration, but mental stops are highly effective. Focus on risk-reward rather than stops.

  5. Purchase stocks with an earnings breakout: Stocks with good earnings or those that approach 52-week volume highs trade at least 250,000 shares per day. These types of shares are easy to find however it is difficult to determine if the high occurred due to a pump-and-dump scheme. Avoid trading large quantities: Called position sizing, the rule is never traded more than 10% of a stock’s daily volume. Also, purchase a limited amount of share so that you may liquidate it faster. Penny trading has earned an unscrupulous reputation. Nevertheless, it is quite possible to succeed in penny trading if you thoroughly study your penny stock picks.

  6. ARE YOU READYTO DOMINATE WALL STREET WITH MY IMMACULATE PENNY STOCK ALERTS? Visit Here@ http://immaculatestockalerts.com/

More Related