Tag Archives: penny stock trading

7 Penny stock trading tips (Part 2)

We continue listing our tips on how to trade with penny stocks. And the tip #4 is keeping a journal.

A trading journal is a great tool for writing down all the moves that were done by you. The results of the operations should be fixed there as well. This will be a sort of diary that teaches you how to trade with profits and which strategies to implement for the future.

Such a journal will provide you with consistent profitability. It’s the most precious skill for any stock trader. In the future, you’ll get an opportunity to analyse your past experience and to improve your trading.

5.Take care of yourself

Improving the trading skills is a number one goal for any trader. But your body and your health are no less important, than your profits! That’s why you should not skip healthy eating, exercising and enjoying the life with your beloved ones.

Schedule your daily routine in a way that it could help you remain fit and healthy, not just staying focused on trading.

6.Spend time with your family

You should always remember that trading is just your job, not a part of your life. People around you, your family and close friends – they should be thanked for everything they’ve done for you. So, when you think of the way you are going to spend your free time, don’t forget about them.

7.Invest in education

Remember, education is still the only way to increase your earnings and enter the next level. So, never stop investing in your education. This will be the really profitable investments of yours!

7 Penny stock trading tips (Part 1)

A lot of people get interested in penny stock trading. They believe in the promises of the penny stock trading brokers, telling unbelievable success stories.

In this article, some real tips will be given. They will help you avoid spending both your time and money on making the wrong decisions while trading.

1.Don’t believe to everyone

Each of the companies that provide their services for traders may tell you some great stories about their amazing success. But think logically: if they were really so cool, they wouldn’t have been the penny stock trading companies. These guys would probably enter some large stocks. So, if they aren’t still there – everything is not so easy for them.

2.Your profits are limited

There are famous success stories, which relate to penny stock trading. According to them, you can turn each $1 into $10 with simply one share.

In theory, it is possible, but the reality is much harder. Even the professional traders expect to get $0.4-0.8 of profit per share. It’s an amazing result and it’s quite real. When you know which numbers you should expect, you can trade safely.

3.Diversify

Playing with penny stocks may be a risky game, though it goes about the low-cost shares. The situation at the market may be changed immediately so that your main task is to diversify your portfolio as much as possible. A perfect diversification means that you buy a few hundred thousands of shares and make enough profits, selling them on a daily basis. As you can imagine, these operations require a lot of control from your side.