| Penny stock trading is like any other business. Your | | | | you have better days? How were you feeling on |
| goal is to maximize the return on investment. When | | | | those days? If you're not keeping these kinds of |
| trading, your inventory is how much money you have | | | | records your not doing your best to be successful |
| in your brokerage account. You then take this | | | | and you'll probably end up failing. When trading, there |
| amount of cash and try to grow your account. When | | | | are too many factors involved that you will not |
| trading, not every trade is profitable, you will need to | | | | remember when you look back at that awful trade |
| figure out what are the situations that make for | | | | of xyz 6 months ago. |
| profitable trades. The only way to gain this | | | | When your review your trading log, whether it be |
| knowledge is by trading. As you reflect back on your | | | | yearly or quarterly you may find out that trading |
| trades you will realize which situations were profitable | | | | after a night of partying is bad for you or trading a |
| and which weren't even when your not in a trade. | | | | certain sector for you is good. This information is |
| You can paper trade or open a practice account but | | | | invaluable. You may be great at swing trading but not |
| when your out in the world think like a trader and | | | | be great at getting in and out for a dime. This |
| realize how stocks are actually doing. You must do | | | | knowledge should help you shape your trading plan. |
| this yourself, headlines are worthless. | | | | Don't let anyone fool you, trading is a very difficult |
| If you start trading with cash before you have | | | | process because of all the unknowns you are dealing |
| enough experience, you may lose some or all of your | | | | with. Thats why the best traders are just making an |
| account before you learn enough to be successful. | | | | educated guess if they say anymore than this they |
| This may turn you off from the stock market | | | | are simply not being honest. When analyzing a sector |
| before giving it an chance. It takes years of trading | | | | to invest in you will always find contrarian information |
| to be successful at all sorts of trades. Still to this day | | | | and advice this is inherently stressful and you need to |
| I've met many traders that are able to trade runners | | | | trust your knowledge. The better you are at being |
| better than me, but I can nail the dips in a stock | | | | right by trusting your gut, the more likely you will |
| trade before they can. Often I'll make my money on | | | | succeed as a penny stock trader. |
| the contrarian end of the trading cycle. Your main | | | | When you trade, you are alone, this is very solitary |
| investment should be time, not money that way you | | | | and I like it best this way. Others like to use chat |
| will learn your way around the market and find out | | | | rooms and trade in groups, some very large and |
| what actually moves a stock compared to what your | | | | some very small. Try different groups to see if you |
| being told. | | | | gel with them. Personally I find myself making more |
| Plan your trade before you enter it, what are you | | | | bad trades in a group as the chat room people are |
| expecting to make, what will you accept for losses. | | | | constantly excited by one stock or another. Keep it |
| Do not buy penny stocks and hope for the best. | | | | in perspective though a chat room is a great place |
| You are dealing with the unknown, you don't know | | | | for the pump and dump crowd to get in and pump |
| what news will come out tomorrow good or bad and | | | | up their penny stocks to make a buck off of |
| that's just in regard to the stock, something in the | | | | unsuspecting beginners. |
| world may effect the sector your in i.e. gold/oil/tech. | | | | With all this in mind, the rewards of being a |
| There could be a terrorist attack, what you are doing | | | | successful trader are huge. There is a lot of money |
| is making an educated guess using all the knowledge | | | | out there to be made. You will probably work from |
| you have. | | | | home or the office and develop your own schedule. |
| Keep a record of every trade. Why you entered, | | | | Just don't try to take care of 5 babies and trade |
| what you were thinking then you can look back over | | | | from home. Your environment needs to be conducive |
| months or years and evaluate your trades. Which | | | | to trading. An easily manageable area that you are |
| trades were good ones, which ones were bad, do | | | | completely comfortable with minimal distractions. |