Business

How To Do Penny Stock Trading.

Written by Hammad Saif

One of the advantages of penny stocks treading is that it’s simple and they promised big profits. Still, it’s another best way to lose money just like betting.

Penny Stock Trading

You can actually make it in the game if you understand all the cons and pros involved while you can lose money if you don’t.

Another thing you need to Know is that scammers and manipulators are also in the game. You can invest a little amount in penny stocks trading and double it if the trades work out.

Here will be guiding you on how to do Penny stocks trading and make good money, so follow along.

Sell quickly

When you are into Penny trading you should sell quickly and avoid top successful stories that encourage you to wait till the shares go up.

This kind of greed is what has ruined many people. They aiming for a 1,000% return. Knowing that the possibility of penny stock you’re in might be getting pumped up is 95%, it will be better to take any profits and move on.

Don’t listen to company management

In the penny stocks world, you just have to trust no one. The company wants their business to move on. There is no reliable business model or accurate data, in fact, most of this penny stocks are scams.

They are created to enrich the insiders. That is why they spend a lot amount of money running a promotion in other to manipulate and deceive many.

Don’t sell short

Although you might find shorting pumped-up penny stocks attractive, please don’t sell it, leave it for pros.

This is because it’s difficult to find shares of the penny stock to short, especially those that made huge moves based on ads and newsletter tips.

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Go for penny stocks with  high volume

Stick with stocks that have high volume shares, at least 100,000 shares a day.

Buy the best of the bunch

Buy stocks when they have good earnings or trades that are breaking out on high volume.

Don’t trade large position.

When trading, you should be careful with your position sizings and limit your share sizings so that you can get out of the stock faster.

Don’t be addicted to a stock.

Just like betting company, every stock company will want you to be in love with a stock so they can continue building their business and making money from you.

You need to be careful and always do your own research and diversify. Penny stocks trading has a bad reputation, beware.

Here you can read about Stock Trading.

 

About the author

Hammad Saif