Should You Trade Penny Stocks Weekly?
The other day I presented an idea that many people in the stock market are trading penny stocks weekly
or even daily. And my thinking is simple
thats too much, and I can prove it.
First, why is trading so frequently a problem?
Its really the difference between being a penny stock trader and a penny stock investor. The three big reasons are:
- Trading costs will eat you up!
- Research gets tossed aside!
- Volatility is a double-edged sword!
Ive said it once and Ill say it again To really profit, youve got to think outside the box and that means avoiding the herd.
Heres how you really make money trading penny stocks and its got nothing to do with trading penny stocks weekly.
Consider a small biotech company that had some amazing clinical trials.
Back in 2009, Human Genome Sciences (HGSI) was trading for less than 45 cents a share.
If you bought it then and grabbed that first run up, youd have doubled or tripled your money.
If you held it for a few months, youd have made 10 times your investment
If you stuck it out and held this stock for just six months your return would have been close to $20 bucks for every share you bought (3,500% return 35 times your money)!
But the run wasnt over yet!
This stock kept climbing and climbing. When it was all said and done, the stock had recorded a 6,784% gain.
Thats 67 TIMES your money $67 bucks for every $1 you put in.
Now this doesnt happen every day but when it does, it can be amazing for your bank account, and for your life.
But youd have missed out on this opportunity by trading penny stocks weekly.
Stop being a trader and start being an investor.
Its just one example of a trade that made some people RICH because they had the strength to hold on for the long term!
Profitably Yours,
Penny Stock Research
Category: Investing in Penny Stocks, Penny Stock Tips
