All this time, you have been being with this page to dig complete information about penny stocks. It implies you are ready to trade penny stocks because you have chosen it and buy it.
Do you remember one of the quotes for the prior post?
You surely remember that you do not allow to trade it without paying attention to the time. On the other hands, you must find the best day or time to trade penny stock online.
So, you need good guidance to run your stock business. Have you got it?
10 Tricks to Trade Penny Stocks to Minimize the Risk
It is not a secret again that penny stocks include as the anxiety stocks. The reason is the character of the stock which is quite lucrative.
All the people who are playing here always be careful and think about the worst likeliness.
Why they do it?
The fluctuating character of the stock makes it has extremely thin distance between profit and loss. Clearly, it gives fast profit or fast lost in a short time.
Definitely, this case is quite horrible and it looks like a threat that is ready to attack you.
Thus, you should have the best trade penny stocks guidance or trick to win it.
10 tricks below are ready to lead you to get profit in your trade. At least, it will minimize the risk which often attacks people who use it.
Okay, let’s see 10 following points while analyzing it together:
1. Do not believe about the success of penny stocks directly
Okay, it must be your first shield to save your stocks! Do not believe directly when you hear that penny stock make you get big profit quickly.
It is better you analyze it while looking for the weakness of the stocks. You should also remember that you also have a big change to fall down. So, you might be happy with this advantage of easy to rich.
However, you must always remember that it is also easy to make you lose.
2. Ignore Tips from Incredible Sources
Finding the tips to trade or invest penny stocks can be from anywhere. It is because there are many sources emerges both on the internet and indirectly.
It is very possible you will get an email from a company who have this stock and give you tips. Here, you must know that there are many invalid or bad companies want to sell the stock.
You need to be careful when you get tips to trade penny stocks a good investment without a clear source. It is better you ignore it!
3. Fast Selling
Apparently, the penny stock needs to fast selling. In several days, you can get a profit of 20-30%. However, you are really sure that the time is really right.
If the profit is under 20% or under the price that you use to buy, try to be patient. Yeah, save the stock until the right time comes and it will not in a long time.
4. Ignore a company management’s rule
What does it mean? You have to stand independently because it is about business. Occasionally, you do not necessarily believe everyone because they may your enemy indirectly.
Talking about company management, many of them do not use accurate data to promote their stock. So, it is very possible to advertise their company excessive to hide the badness.
5. Avoid trading in short time
Well, it is the opposite of point number 3. You should be patient with waiting for the right time to trade penny stocks the USA or wherever you are.
Besides that, do not be greedy with giving high rate to sell your stocks. It might others lazy to see your stock.
6. Concentrate on the high volume
Note! Only trade in high volume if you want to move up. Get the exchange market that trades at least 100.000 stocks per day.
Then, find the company who want to buy your penny stocks more than $50 per stock.
If you run this business under that price and amount, you will not get enough liquid to play.
7. Use mental stop
Although you need a high focus to play, do not forget to stop for a while.
Actually, you only move to think another. For this case, you need to think about prevention. Prevent to get loss moreover until 10%.
Most people use to make some ratio between the profit and loss such as 5:1, 4:1, or 3:1. Precisely, you avoid to use 2:1 and 1:1 because it is too risky.
8. Buy the best
Trade also means you buy the stock. How to trade penny stocks the US here asks you to only buy the best one.
Such as the information above about 100.000 trade per day. In that large amount, of course, not all of them are good. Therefore, pay attention and select.
9. Trade-in a small volume
Do not trade your penny stocks in large volume or more than 10%. Besides that, limit your size to quite from the stock faster.
10. Avoid falling in love with the stock
Just beware because actually, penny stock has a bad reputation.
3 Parameters to Buy Penny Stocks
However, there is one point that talks about purchasing. Here, you as well need good tips to do so that you get cheap or the right price.
By the way, this way is also useful to get the best stock. Okay, let start reveal 3 parameters below:
1. Breaking News
Firstly, you should find gapping stocks which have several types of news catalyst. Nevertheless, you must as well find the penny stocks to buy with the price that lowers from the trade.
The point is you must find the stock that is far cheaper to buy.
How to invest in the penny stocks is through the second parameter is that afloat. Find the stocks with a small amount of stock to trade which has numerous interests.
3. High Related Volume
Lastly, how to buy the best penny stocks should see the volume. By the way, this point has existed above where you must get the high volume stocks. Okay, it repeats again to remind you.
Well, those are 10 tips to trade penny stocks along with the 3 parameters. It turns out trading also mean purchasing not only selling.