A Penny Stock Trader Is By Nature Secretive. Your Secrets 2 Success...Discover The Secret To Consistent Stock Market Profits
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Penny Stock Trader--Your Secrets 2 Success In this unique market, you must learn how to reduce risk and time trade entries to consistently make money. I have learned to take control of my finances by doing evrything humanly possible to understand a trade prior to getting in to it. Makes sense, right? But this is where the penny stock trader frequently goes wrong. They ignore the due diligence aspect of trading this market, and then blame the "pinkies" when they lose money. Take control of your finances. Research your trades.
Popular Stock Trading Systems and Software Penny stock trading can be bewildering at times, so it’s good to have help with research and trade strategy advice.
Research Pays Dividends The effort a penny stock trader makes to deliberately research and time a trade is what separates him or her from the crowd. The purpose of this website is to help you avoid the crowd. It’s not based on contrarian principles, but common sense. A profitable penny stock investment strategy does not consist of randomly grabbing a stock off a message board or spam email, throwing money at it, and hoping for the best. This is exactly where the penny stock market gets its bad reputation—careless trading. People tend to believe any stock that costs less than a penny per share is not worth researching. Wrong.
A successful penny stock trader follows strict guidelines. These guidelines demand both fundamental and technical analysis of a stock prior to trading. By the way, if you just joined the penny stock market world and want to learn more about reducing the risks while improving the odds of your success, then welcome to the party. We’re just getting started. the Penny Stock Advisor is dedicated to helping you learn how to trade this volatile market profitably. Plain and simple, penny stock investing is speculation. Note I did not say gambling. Gambling is for those other guys and gals who take the random walk down penny stock street approach. The successful penny stock trader turns speculation into a calculated risk by learning from others successes and failures, and adapting these lessons into a pocketful of personal trade “secrets.” My Pocketful of Secrets
Let me flesh out how the successful penny stock trader can use these secrets to find profit in the penny stock market and take control of his or her finances. First, you narrow, or reduce risk, by conducting fundamental analysis of stocks you may be interested in. If they don’t pass the fundamental test, toss them. Don’t buy them. My definition of fundamental analysis may not be technically accurate, but here’s what has worked for me. I look for companies that are current in their filings with Pinksheets, have current assets that are greater than current liabilities, and have a sound business model that creates cash flow. I then multiply the outstanding shares by the current share price to find the market capitalization. If this is lower than the book value of the company, it may have potential. Once a company has passed my fundamental test, I look at the charts for a good entry point. Now I’m no technical analysis guru, so you may want to do a search on tutorials in this area if you need help. I keep charting fairly simple, but have seen some of the advanced techniques help traders rake in huge profits. I look for volume spikes that show increased interest in a stock, and I look for MACD convergence that may suggest accumulation. I also like the stochastic over-bought, over-sold indicator, but don’t swear by it. At this point I have most likely moved into a trade position. Which, by the way, is always less than 10% of my total portfolio value. Now my third secret comes into play. I’m watching my trade closely for clues to a good exit point. In any trade one of three things will happen. The stock price will go up, go down, or hold steady. If the price moves against me beyond say 10% of my total trade amount, I want to sell. If it holds steady I will re-evaluate the charts, and the possible impact of pending press releases. If the stock moves up to my profit threshold, I’m hitting the sell button. Selling and taking profits ties end with my next secret. You’ll never go broke taking profits, and in the penny stock market a small profit can turn into a big loss very fast. These suckers can move fast, which is why I encourage you to learn about day trading strategies to take profits. Day trading is not for eveyone, and I don't use it for every trade myself. My point here is that I want to emphasize that in the penny stock market, you want to be light on your feet. Don't hesitate to exit a trade if you are uncomfortable with the trend. Every now and then a stock comes along and gaps up big on the open. These are the homeruns the penny stock trader dreams about. They’re rare, but I never try to plan or expect one. I call them “happen accidents.” My last secret is to ride free shares. Here’s what I mean by that. Recently I purchased 9 million shares of a triple zero stock trading at .0001. Several days later it traded at .0003. I sold 3 million shares, basically cashing out of the trade. But, I still had 6 million shares of the stock in my account. Free shares. Free shares are a double-edged sword, however. If I had sold my entire position I would have realized a 300% return. I only held my shares in this case because I am about 65% sure the stock will rise significantly higher. I cashed out to hedge against a drop, but left enough shares in the game to make a substantial gain should it gap up some morning. To become a successful penny stock trader, develop a list of rules and secrets that work for you. Stick with these and use discipline in your trades. Disclaimer: Please note that this website does not claim to be a stock broker, investment advisor, or legal counsel. The purpose of this website is to introduce you to the concept of investing in penny stocks for profit. I make no specific recommendations for individual securities and highly recommend you review any investments with licensed investment professionals prior to making a trade. Penny-stock-advisor further encourages you to research all companies prior to investing. Any companies listed on this site are mentioned for illustrative purposes only. Yes, the penny stock market offers potentially huge profits to investors, but it also carries risk of loss. Do not invest any more than you are prepared to lose. A penny stock trader makes money by following rules. Learn more about trading at my homepage.
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