| These penny stock trading tips will help you get the | | | | fundamentals sell at your limit. You can always buy |
| best out of your penny stock trading. Trading in | | | | the stock again, likely at a lower price in a few days. |
| penny stocks brings unique opportunities as well as | | | | One of the most important things in penny stock |
| unique problems. | | | | trading is to set rules that you are comfortable with |
| Price Averaging And Penny Stock Trading | | | | and then sticking to them. |
| Price averaging is a good penny stock trading tip. It | | | | Use Limit Orders |
| simple means buying more of a stock as the price | | | | I recommend you use limit orders when penny stock |
| falls. This in turn lowers the average price that you | | | | trading due to the often limited availability and liquidity |
| pay for your total holding. | | | | of penny stocks. |
| So if you hold 10000 shares that you purchased a $1 | | | | A penny stock market maker can sell you the stock |
| and the price drops to $0.8 you could buy another | | | | at a higher price than you want them or a lower |
| 10000 and then have 20000 shares at an average | | | | price than you are willing to sell for. Placing a limit |
| price of $0.9. | | | | order protects yourself. |
| As long as the price subsequently rises above your | | | | This is particularly important if a stock has very little |
| initial purchase price you will achieve a higher profit | | | | trading volume. There may be few market makers |
| overall. Of course, the price could continue to head | | | | for the stock lowering competition and the market |
| down so be careful not to chase a stock all the way | | | | maker will have time to make a value judgement on |
| down. | | | | your trade and adjust their price to their advantage. |
| Set A Limit On Your Losses | | | | Remember, you may well be dealing in a large |
| Set a limit on what you are prepared to lose on any | | | | number of shares (say, 50000) so just a $0.10 |
| trade to around 20% and as soon as your limit is | | | | difference in the fill price can mean the difference |
| reached, sell the stock and move on to your next | | | | between a decent profit and a substantial loss. |
| target. Even if you believe a stock has sound | | | | |