| Penny stock is a tricky game filled with lies and | | | | Keep the losses small. One must have a fair idea of |
| cheaters and thieves. Most stocks don't remain the | | | | the risk one is willing to make. One technique is to sell |
| same for more than two year. Either the name gets | | | | a stock if it goes below the price in your alert. |
| changed, or undergoes a reverse split, or the | | | | Remember big loss has its beginning in the small loses. |
| management changes. For this reason, one should not | | | | Always be in control of your emotion and get out f |
| be a long term player. No matter how good a stock | | | | the trade goes against you. The success to trading is |
| appears to be one should never bet the ranch but | | | | to know how to limit losses. An order called Stop |
| only make small investment in these stocks. But | | | | Loss Order limits one's loss or protects one's profit |
| apart from its risks, nowhere will you find stocks that | | | | on a trade. If one is trading in penny stocks then |
| move as quickly as it can in this market. And there | | | | Stop Loss Order is a must. The most suitable place |
| lies the chance to earn big profits. | | | | to put one's stop is slightly below the previous day's |
| Always use limit orders. Pick an entry price and stick | | | | close. |
| with it. Never chase stock. And never use market | | | | Always sell on the way up. Get used to booking |
| orders to enter into a trade. Market order enables | | | | profits no matter how small. it doesn't matter |
| the market maker to fill you at any price they prefer | | | | whether the profits are big or small, but one should |
| and leaves you vulnerable to getting poor fills. | | | | always try and have consistent profit instead of |
| If a stock gaps way up don't chase it. It is bound to | | | | risking for a big home run. And last but not the least, |
| come down during the day. Opening is also a very | | | | always use trailing stops to protect one's profit after |
| crucial part. It can help you predict the way stocks | | | | a stock has gone higher. |
| are going to behave that day. | | | | |