How Can The Average Penny Stock Trader Avoid Potential Disaster?
In the markets, greed is often a good thing. It is what drives a penny stock trader to perform well, and what drives much of the markets movement. Its the effort that a penny stock trader expend trying to make a profit that creates the market movement that enables you, as a penny stock trader, to succeed. The desire to make money is what motivates every penny stock trader to become successful. But the desire to succeed is different from the desire to get every bit of possible profit from a trade. This kind of reckless greed makes the penny stock trader hold on to their positions long after the downside has started to outweigh the upside, until risk outweighs potential reward. Here’s an example: a penny stock trader sees that a particular stock is starting on a run; it’s reported good news and is already up 20% for the day. The volume is still building; it’s stable at the current price; the market is rallying strongly; and it looks like it will go higher. The penny stock trader buys 1,0
