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Penny Stock Strategies

Why should the rich guys have all the fun? The small investor can seek out huge returns too…if they know how. 

Technical analysis that uses statistics for forecasting price fluctuations is one approach. However, because it is difficult to track changes in fractions of a penny, there simply isn’t enough data to be able to analyze. Therefore, you have to keep an ear to the ground when you trade penny stocks. 

One of the biggest forces that drive penny stock prices is hype. Whether it’s online in discussion forums or chats, or offline with publicity and press, hype can cause swings in penny stock prices. 

Are you looking to trade penny stocks to earn a good return on your money? Penny stocks can be profitable for some, but it can also be a money-losing experience. 

What should you watch for when you trade penny stocks? 

What are some strategies that professionals and amateurs use when dabbling in the penny stock trade? 

One technique that some experts who trade penny stocks implement is to focus on a particular stock. Get to know the stock inside and out; that is, get to know the company behind the stock, any news about that company, and anything else that might affect the stock price. Target one stock, listen to the buzz, and see how the stock responds. The louder the buzz gets, the larger the potential for a big price swing. 

Many people who trade penny stocks are small-time investors who don’t have more than $1,000 of investment capital. These people trade penny stocks because it gives them more shares for the money. 

Where they might be able to buy dozens of shares in a major exchange such as the New York Stock Exchange, they can buy hundreds when they trade penny stocks. The potential for loss is big, however. It’s almost closer to gambling than investing. The money used is strictly risk capital. Once the money is gone, it’s gone. 

Another subset of people that trade penny stocks are amateur investors who use the buy and hold strategy. They purchase a stock and retain it for long periods of time, hoping that the stock skyrockets at some point in the future. 

Unfortunately, this strategy hardly ever pays off in the way that the investor had hoped. In the long-term, the stock could end up being completely worthless. 

Trading penny stocks can be a profitable, and even fun way to invest. It certainly isn’t a traditional method of investing, and is unlike old standbys such as bonds and mutual funds. However, trading penny stocks isn’t for all people. 

You should have a high tolerance for risk, a willingness to analyze every minutiae of your penny stock, and some intestinal fortitude. Have fun with penny stock trading, but don’t expect to stumble into the next Walmart for pennies on the dollar. 

And remember, as with anything else in life with high potential for gain there is also high potential for loss. Do your homework, follow your rules, and plan to prosper.


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16 comments:

  1. Anybody going into penny stock should have the understanding that you win some,you lose some..I could use some help from this penny stock strategies though

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  2. Definitely to make good money with penny stock then some very good penny stock strategies must be adopted like focusing on a particular stock.

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  3. The best free stock course I have come across. Very well detailed and very informative. Such information is hard to comeby.

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  4. Another penny stock strategies topic? This is really a vast subject so keep them coming. It is beneficial to newbies like me.

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  5. These are great tips for those that want to trade wisely. It is always good to have investing tips about stocks before trading in it.

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  6. A great stock education for armature and professional stock traders. If you want to play professional you must understand the tricks that professionals sionals use. Great advice here.

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  7. Any penny stock trader will need to have an advanced penny stock strategies as these ones to keep them ahead in the market. You don't come by them very easily.

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  8. It is important for the investors to know about penny stock strategies. Proper stock education is needed to avoid loss in stock trading.

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  9. I do like your investing tips. Most people usually do learn the hard way.

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  10. This free stock course is simply amazing. Not a lot of people know the risks involved with penny stocks, thinking that just because it's cheap wouldn't mean much in losing money.

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  11. Your penny stock strategies are very useful for any trader willing to seriously tarde in penny stocks. I have this page bookmarked for future reference.

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  12. A good stock education can help one develop his/her own strategies and use them in conjunction with already established strategies. Thanks for sharing this useful information.

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  13. Thanks to the free stock course I am able to understand most of these strategies. I will slowly start implementing them into my trades.

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  14. These strategies really come in handy when actively trading in penny stocks. Keep this valuable information coming!

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  15. Your strategies can double up as very good investing tips too. When applied correctly one can make a lot of profit.

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  16. If you see that a penny stock is being promoted on websites or other sources you it's probably because the company has either bought ads or someone is trying to prop it upwards. Be warned.

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