Thinking About Penny Stocks?
As any financial trader can tell you, penny stock trading can be a high-pressure venture and one that’s certainly not for everyone. Investing in penny stocks is very risky if you do not do your homework. We at Stock Professors, known as the “Penny Stock Professionals,” reveal the secrets to investing in penny stocks. Stock Professors offers a free newsletter to teach you about penny stocks and will give you the solid picks designed to return maximum profits. With Stock Professor’s picks, it is possible to see gains of 150%, 250% or even 5000% profit!
Here are some points for anyone looking to get into the world of penny stock trading to consider:
Be honest about your ability to maintain a certain amount of self-control. Penny stock trading is often about taking risks. Penny stock trading can also be about knowing when to cut your losses. It is far better to know when to walk away from a trade than it is trying to make back money which you have already lost. If you can do this, it will almost certainly be the key to your success as a penny stock trader.
Be able to instantly recognize trends in the changing values of stocks and shares. These patterns can be taught if you are unfamiliar with them, we will show you what to watch out for. By following our many guides provided on this site you will be able to identify and capitalize on these critical shifts in value. One of the key resources you do need is time. A penny stock trader must keep constant watch on the markets, things happen quickly and one needs to react in real time to ensure the best chance of success.
What Are Penny Stock Traders?
In the stock market there are two types of people: the investor and the trader. Strategies for each will vary, particularly when it comes to penny stocks. To pick the proper trading strategy or system, you should know first if you are an investor or trader? The investor typically has long-term perspective where a trader has a short-term perspective often forgetting the ticker symbol of a penny stock once they have sold their position. Most penny stock trades are executed by traders which will increase the volatility of the trades. Learning to think like one can give you an edge. I was a desk trader for over fifteen years and took my share of bumps and bruises. The number one thing I learned to respect was the old saying “There are bears, bulls and pigs…. don’t be the pig!” yes it’s overused – but it teaches you the most important thing about trading, set your goals and stay with them. PERIOD. You can follow charts, news, swings… whatever you like to use to assist in making decisions, just never stray from your objective. For example, if you set out to trade on a company with a goal of making a 8% profit, then stick with it. When you hit that number, it’s time to get out.
While analysis and research is very important when you invest or trade, momentum trading can also be an easy way to profit in penny stocks. Fundamental analysis is helpful for investors that look for long-term gains. On the other hand, traders looking for short-term gains often opt for technical analysis. If you have a sound knowledge of technical analysis, you can make huge profit with less money in stocks. Though these stocks, penny stocks, are very risky, a proper trading strategy can result in huge profits.
Learning About Penny Stock Trades
Say you invest in a stock ABC co. that is trading at $50 and you purchase 10 shares, your investment is $500. Now, if the stock rises to $51 then your investment becomes worth $510. That’s a net of $10. On other hand, say you found good penny stock with good fundamentals trading at $0.15. If the penny stock rises by $1, same as the previous one, you would gain $0.85. If you had invested in the same amount of shares, 10 shares, then your investment for that penny stock would be $0.15 X 10 = $1.50. So your gain is $8.50 on an investment of $1.50 and percentage gain is 566.67%! Yes, it’s a ridiculous example but it illustrates the main point. This is why people love to learn about penny stocks.
Do not waste your time trying to find a trading system with 100% success rate. It won’t happen. With a great success rate and using the methods like swing trading, which you can learn from us, you will improve your penny stock trading profits. If you can make a simple trading system, with a good success rate, let’s say 70%, and use it with other trading techniques momentum buying and stop losses you can make big profit in any market or stock, especially stocks for a penny.
Don’t forget the stop loss. It is the yang of having your target profit percentage. Once you determine how much you are willing to lose then stick with it. No Matter What. It can always a bitter pill to swallow when a losing trade must be placed. Better to have at a defined parameter that you set going in, then at a 90% loss. You can’t let emotion make decisions, as we have said set your objectives going in, both on the high and most importantly on the downside.
Where to Find Penny Stocks
We will help you identify penny stocks that are just about to breakout. When it is in its bullish pattern, you can make a killing in profits. Our subscribers have commented to us that we have an uncanny ability to pick the “Breakout” penny stocks just days before they see gains. Our subscribers all share the same strategy you too can use to trade in penny stocks and make big profits.
Our first example, Stevia Corp. (OTCBB: STEV), has been a great penny stock to buy. On October 31, 2011 we alerted on it at $.89. By January 13, 2011 it was $1.85. That was a gain of $0.96 or 92%.
Another example would be Juhl Wind, Inc. (OTCBB:JUHL) which is another penny stock to watch. Our alert from April 7, 2011 opened at $1.30. By May 17, 2011 JUHL was at $1.70 for a gain of $0.40 or a gain of 76%.