| Penny stocks. Depending on your past experience | | | | understand it and embrace it. If you like a little risk |
| the comment alone either makes you smile. . . .or run | | | | and excitement in your life, penny stocks might be |
| the other way in fear. I've made some good money | | | | perfect for you. |
| from penny stocks. I've also lost some good money | | | | Tip Three: Do your research BEFORE buying a penny |
| investing in penny stocks. | | | | stock. |
| And I can honestly say this. | | | | I can't tell you the number of times I've heard |
| I know people who've made millions from one penny | | | | investors bemoan their penny stock investment. |
| stock investment. It's absolutely amazing. But, like all | | | | Usually it's from investors not doing their research. I |
| things having to do with trading and the stock | | | | can tell you how many times I've heard . . . "I'd never |
| market, it has its risks. If you understand and work | | | | have bought the stock if I knew that!" Do your |
| to minimize those risks you might too be able to brag | | | | research. Read everything you can about the |
| about making serious money off of penny stocks. | | | | company, their product, and the management team. |
| With penny stocks there are numerous risks. As a | | | | And "NO." Just because your brother-in-law's buying |
| matter of fact, the SEC has published a notice called | | | | the stock does not mean your research is done. |
| "Important Information on Penny Stocks." They | | | | Jump through the hoops. Do the research. Ask |
| require your broker to get you to sign a statement | | | | questions. You'll be glad you did. |
| that says that you've received it. | | | | Tip Four: Be willing to hold on for a while. |
| I'm not going to bore you with all of those details. | | | | It's not every day you'll find a stock to invest in. As |
| Instead, here are five tips about trading penny | | | | a matter of fact, you'll no doubt discard a hundred or |
| stocks that should help you become a better trader. | | | | more for every good investment you find. Once you |
| Tip One: Make sure investing in penny stocks is right | | | | find a good one hold tight. This is one of the most |
| for you. | | | | important tips in the group . . . be willing to sit and |
| Everyone's financial situation is different. You need to | | | | wait. |
| consider your investment in penny stocks very | | | | Rome wasn't built in a day, and your stock probably |
| carefully. Some investments are riskier than others. | | | | won't start showing profits the first day either. I |
| Penny stocks are at the high end of the risk | | | | know investors who have waited two, three, and |
| spectrum. That being said, making the right | | | | even four years for a penny stock to show a really |
| investments can generate high rewards. | | | | big profit. Have conviction in your research, and be |
| Many penny stock investors dedicate a small portion | | | | willing to wait. When the stock starts to move you'll |
| of their portfolio to these types of investments. Like | | | | no doubt be handsomely rewarded. |
| they say, "all things in moderation." So don't go | | | | Tip Five: Have a plan for your investment. |
| throwing your life savings into a penny stock. "OK?" | | | | The greatest investors of our time always have a |
| Tip Two: Understand the volatility of penny stocks. | | | | plan. They decide in advance why they are buying a |
| Volatility for stocks is simple. It's a measure of how | | | | stock. They've even identified a profit objective. |
| much they go up and down. Stocks never go up in a | | | | They've determined what to do when the trade |
| straight line. Every day is a new day, and the | | | | moves in their favor. And more importantly they've |
| opportunity for a gain is as good as a loss. | | | | already decided what to do if the trade moves |
| Remember, volatility is a good thing . . . when it | | | | against them. Having a predetermined sell strategy is |
| moves the right direction. | | | | very important. |
| Having a steel stomach is important for investors | | | | Follow all of these tips before you enter a penny |
| focusing on penny stocks. You might see your | | | | stock trade. Believe me, it makes investing much |
| investment rally 100% one day then loose 50% the | | | | easier. I'm sure it will help you become a better |
| next. Volatility is huge in these markets . . . so | | | | penny stock trader. |