Three Penny Stock Trading Tips
Are you trading penny stocks? Maybe youre buying them daily or weekly? Maybe youre a longer term buy and hold type of investor.
Regardless of your investment style, playing in the penny shares market can be risky.
Penny stocks are the Wild West of investing.
And to protect yourself, you need to be extra cautious. Since Ive been in the financial markets for almost 20 years now, I want to share with you some of the secrets to making money with penny stocks
Now lets be honest about one thing it takes work.
You cant just sit down and start trading penny stocks and become a millionaire in a day NOPE.
Youve got to do your research
And thats penny stock trading tip number one.
Youve got to look at the company and determine its true potential. Is it growing? Is it shrinking? Are they making sales? Is the company making MONEY? Are profits growing or shrinking? Are they about to release new products or change management?
Research is critical, and you need to do it BEFORE you buy a penny stock. That way, if the stock moves against you, youll be able to know in a heartbeat if you should abandon ship or double down!
And that brings me to penny stock trading tip number two
KNOW what you invest in.
Seriously Ive lost count of the number of investors Ive met that have no idea about the companies they are investing in. They got a hot stock tip from a brother or cousin, or some stupid email and they invested their hard earned money.
They know nothing about the company and in the end, the result is always the same lost MONEY.
Look, if you dont know the first think about biotech drugs, the FDA approval system, and how the human body works, you should probably avoid investing in start-up biotech companies with risky drugs.
Theres no shame in that
Theres no shame in admitting what you know and what you dont know.
Go to your strengths if you understand the retail industry (much easier to know versus biotech if you ask me), then invest in those companies.
If you pick the right ones, the profits can be just as big and your downside is at least limited!
Now, for penny stock trading tip number three
Get educated.
Im a big believer of education. It never ends. Ive been in the markets for 20 years and Im still learning theres a famous quote that goes something like:
When you stop learning you start dying
I wish I could remember who said it (if you know, shoot me an email, I want to give them credit).
Anyway, constantly educating yourself is critical. Youll learn something new and find new ways to profit.
So how do you learn?
Well, that depends on you.
Im an avid reader cant stand videos. So I read everything I can about the markets. I also love to talk to people so when I meet someone who knows a lot about a particular topic, I ask a lot of questions.
Learning face to face is huge!
If you can, read the papers the Wall Street Journal, Investors Business Daily, and the Financial Times are all great reads and youll learn tons!
More importantly read what I write Ive got 20 years of experience and I want to share it with you! So keep reading, and if you have friends who might find this kind of information useful, feel free to send it to them!
So those are three quick tips to better trading stay tuned and Ill give out more secrets to making bigger profits trading penny stocks.
Profitably Yours,
Penny Stock Research
Category: Investing in Penny Stocks, Penny Stock Tips
