How Do You Make Money With Penny Stocks Trading?
Penny stocks offer what I believe to be one of the most explosive opportunities for making money. When I speak about penny stocks, I am referring to any company trading below $5 per share. I have no interest in most of the stuff trading below 50 cents and very rarely trade anything below $1. Here are a few steps to keep in mind when venturing out into the world of penny stocks trading. Have specific guidelines for entering a trade. Know what is going to cause you to enter a trade. Is it a specific technical analysis indicator or a fundamental evaluation of the company. Whatever it is, stick to it. Don’t enter a trade for other reasons, especially not because a buddy told you about some company. If it doesn’t meet your criteria, stay away from it. Know when to exit your trade. What is going to cause you to close your trade? If you have profit, when will you take it? At what point will you take your loss? Don’t allow losses to pile up by chasing a stock and adding to your position. This
