| Be Patient always do your research | | | | your entire investment into one portfolio. You have a |
| Many investors, rush into Penny Stock Trading | | | | high chance of losing everything in one day. Pick and |
| because the stocks are cheap; ok it could be a | | | | choose a few industries. This way you will always |
| gamble and you might come out the better. The fact | | | | play it safe. |
| of the matter is you will not always win with this | | | | If you are in the situation where your loosing 30% of |
| approach. You may end up losing a nice bit of money | | | | your investment pull out, this is not worth it, even at |
| even at a very cheap share price. It all adds up. | | | | 20% and some companies say 10% always know |
| Take your time and research the market. Information | | | | your limit to avoid loosing everything. |
| is available from stock brokers and media resources. | | | | Greed |
| However, this information is not always accurate so | | | | The number one killer is greed when penny stock |
| don't take the information as gospel. Do your | | | | trading, you see your portfolio increase, and increase |
| homework on the company, look into their | | | | and increase some more and then the slow comes. |
| background, check past trends and keep an eye on | | | | This is where many of us lose. We hang on for |
| the industry for their competitors, if they are bringing | | | | another increase. Many a time we hang in and lose |
| out any new products. Most importantly though find | | | | everything. Its always best to sell when you have hit |
| out about new product release dates for the | | | | your percentage target, or just at the slow. |
| company that you are interested in. This method will | | | | Pride |
| guarantee that you make a quick profit. | | | | Many of us have had bad days. What do you think |
| Falling for insider information | | | | this leads to? Yip. You end up going out of control |
| Never accept insider information, or at least you can | | | | and throwing your money back into the same |
| review it but do not rely on insider information for | | | | portfolio or throwing your money at everything to |
| penny stock trading. Relying on anything means that | | | | gain back what you lost. |
| you are out of control and can be taken advantage | | | | Never ever do this. If you lose your investment, just |
| of. By this i mean, there are many online newsletters | | | | relax, stand back and set another investment up in a |
| promoting the next big thing. It also means you have | | | | day or 2 when you are refreshed and not investing |
| not done your research and will lose before you | | | | on your emotions. |
| start. | | | | Patience |
| Set and Leave | | | | Impatience is a trap we all fall into, wanting to throw |
| This is a well known error made by many investors in | | | | our money at penny stocks when we are not |
| the penny stock trading market. I in my early years | | | | entirely happy with our decision. Sometimes external |
| or even few weeks found that this cleaned me out. | | | | factors have a huge part to play here. External |
| The second you make your investment, pay close | | | | factors such as your friends making profit. Listening |
| attention to the market, and what your company is | | | | to many other investors make money sometimes |
| doing, you need to buy and sell quick in some | | | | forces us to make improper decisions. Its all well and |
| instances. Follow trends, just like i was talking about | | | | good listening to your friends, but you need to focus |
| above. It is vital that you have your entry and exit | | | | on yourself and make your own educated |
| plan in place. | | | | investments on your own time however long it |
| Eggs in One Basket | | | | takes. Do not rush into picking your portfolio. |
| Never ever in your life of Penny Stock Trading put | | | | |