| Penny stocks are simply common stocks trading for | | | | Board stocks but the rewards are so much bigger |
| less than 5 dollars per share, which are traded off | | | | when you play your cards right. |
| the board and over the counter through quotation | | | | Strategic Factors |
| services like the OTC Bulletin Board. And so the | | | | Playing your cards right, of course, means that you |
| question remains of whether investing in these | | | | have strategic factors on your side. You might have |
| stocks can make you a millionaire. The following | | | | the right personality but when you fail to adopt |
| factors factors influence making money on trading | | | | these strategies you could lose your shirt. |
| penny stocks: | | | | First, you must formulate and follow an entry and |
| Personal Attributes | | | | exit strategy. It should serve as your ultimate guide |
| Not everybody is suited to penny stock investments. | | | | on when and where to purchase and sell your penny |
| You must possess the right characteristics that make | | | | stocks. If it says you must sell when your profit |
| for a millionaire in the penny stock market, of which | | | | reaches $50, sell at that price. If it says stop when |
| the most important are: | | | | you reach $50 in losses, stop betting on the stocks. |
| * You must be willing to take on higher degrees of | | | | And no matter how many insider information and hot |
| risks in order to reap higher rewards. It must be | | | | tips you hear from so-called friends, always follow |
| noted that penny stocks are more volatile in nature | | | | your entry and exit plan that you have formulated |
| than mainstream stocks. | | | | based on informed decisions. |
| * You have to be emotionally and intellectually stable | | | | Second, you have to invest only in what you can |
| to cope with the extreme ups and downs that | | | | afford to lose. Always remember that you can lose |
| penny stocks will go through while these are in your | | | | much more than you invest in penny stocks, with |
| hands. | | | | wild swings in the profit and loss direction by as much |
| * You should have the capacity to control your | | | | as 50 percent both ways. For example, if you can |
| emotions so that these never rule your decisions | | | | afford to lose just $1,000 because it is just winnings |
| over financial matters. | | | | from a lottery, then invest only a thousand bucks on |
| * You need to have the passion, persistence and | | | | penny stocks. |
| patience to research your prospective and present | | | | Third, you can use stock filters or stock screeners. |
| penny stocks in order to make informed decisions on | | | | These are software designed to take the burden of |
| when to purchase and when to sell them for a profit. | | | | sifting through hundreds of choices and thousands of |
| As you will observe, these personal factors are also | | | | information to arrive at the desired decision. The end |
| true of the Big Board. The main difference is that | | | | result should be a list of hot penny stocks that you |
| penny stock trading is so much more volatile than Big | | | | can look into for investments. |