| It's the goal of all of us. We want to make money in | | | | on for dear life trying to at least make back some of |
| the stock market and have more good trades than | | | | your loss. |
| bad ones. Is it just about finding the right stock or is | | | | And this goes into trading mechanics. You see, |
| there more to it? You might be surprised to know | | | | without good overall disciple, it's all going to fail |
| that there's really a formula for becoming a solid | | | | sooner or later. You've got to stick to your guns, |
| penny stock trader. Even a "good" trade can go | | | | trust your knowledge and go with it. There will be |
| south in a hurry for the undisciplined investor. | | | | ups and downs-it is the stock market after all. |
| If I wanted to develop myself into a solid penny | | | | Trade Mechanics |
| stock investor, I'd look at building up three things: | | | | In the scenario above, you got hammered and now |
| research ability, overall discipline and trade mechanics. | | | | want to stop trading in the stock market. Hey, it's |
| Research Ability | | | | not the market's fault you lacked trading mechanics. |
| Without a doubt this is one area that cripples most | | | | Think of this as a "system" of how to do things. And |
| traders. They hear of a soon-to-be hot penny stock | | | | by system, I don't mean some get-rich-quick thing. |
| or Uncle Sonny has a "can't miss" stock pick. Rather | | | | I'm talking about a process of order. McDonald's has |
| than checking it out, they run to sink hard-earned | | | | lots of systems. That's why their food tastes pretty |
| money into the stock as if they were running to a | | | | much the same at every location. |
| bookie. | | | | One idea of a good trade mechanic is to recognize |
| In fact, the situation of what I just described goes | | | | when you're not trading well. When this happens, |
| into overall discipline, which I'll cover in a moment. | | | | lower the amount of your trades until things pick |
| If there's one rule to be taken out of this it's to | | | | back up. |
| always do at least some research on your own. | | | | Another good "system" is developing a "get in" and |
| Maybe you're buying stock picks or maybe you heard | | | | "get out" method. Rather than just holding onto a |
| of a stock about to heat up or cool off on TV. Either | | | | penny stock until the cows come home, you should |
| way, spend a little time digging up the facts before | | | | have an idea of how much profit you hope to gain |
| leaping in. | | | | and how much of a loss you're willing to take. |
| Overall Discipline | | | | There's More |
| This one kills so many penny stock investors. Above | | | | We could go on even more on what it takes to build |
| I gave a great example. Another failure of overall | | | | yourself into a super penny stocks trader, but this is |
| discipline is getting married to a stock. Sure, it's | | | | a good introduction. |
| happened to all of us-I admit it. There's a stock you | | | | As you can see, each of the three areas I |
| really like, but it starts to tank. Maybe it's a little at | | | | mentioned are all heavily connected. They all play off |
| first, but slowly it starts inching down. Oh sure, you | | | | of each other. The stock market usually rewards the |
| think to yourself, it can come back. Next thing you | | | | disciplined investor and punishes the unorganized, |
| know it's really getting hammered and you're holding | | | | emotional investor. |