Penny Stock Picks ? Are You a Penny Stock Chaser or Are You Ahead of the Crowd?
Penny Stock Picks – Are You a Penny Stock Chaser or Are You Ahead of the Crowd?
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Home Page > Finance > Investing > Penny Stock Picks – Are You a Penny Stock Chaser or Are You Ahead of the Crowd?
Penny Stock Picks – Are You a Penny Stock Chaser or Are You Ahead of the Crowd?
Posted: May 03, 2010 |Comments: 0
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I used to be a penny stock chaser. I’d see a penny stock that had run from 10 cents to a dollar and I would buy it. It seemed like any penny stock that was making huge moves like that must be a sure thing. Unfortunately, most of the time I would lose money. Why?
After a lot of very expensive lessons, I learned that hot penny stocks usually cool off. What comes up, must come down. I have seen certain penny stocks continue to go up and up and up for a very long time, however those are very rare. I finally learned that when good penny stock picks get sent to me, I should buy them, hold them until they go up, and then sell them. To hold them too long usually translates into a 50-100% gain turning into a 50-80% loss.
Sometimes penny stock alerts get emailed to me, and instead of buying them and holding them for weeks or months, now I buy them right away and only hold them for anywhere from a few minutes to a few days. As soon as I have a gain of 20-100% I cash in the chips.
Now everything has changed. I used to win with pretty much every trade, but I’d hold it too long and it’d turn into a loss. Good trading strategies are just as important as good penny stock picks. If I receive penny stock alerts, buy the stock, and then it starts to go down…I cut my losses quickly and move on to the next play. This way my average loss is only 10-20%. The majority of my trades are winners, my wins are big and my losses are small. I usually make about 50% in 2-3 days with most trades. That’s a lot more than with big NYSE stocks!
So how do you find the hot penny stocks and get the right penny stock picks? You have to sign up for a penny stock newsletter. Some of these newsletters are kind of scams because they charge you a lot of money for penny stock picks. This is bogus because the free newsletters out there are just as good as the ones that charge you money. I think the best free one is www.pennystockalerts.com
That’s the best advice I can give you. Sign up with a good newsletter and trade their penny stock picks quickly, don’t ever be afraid to cash in your gains! Good luck.
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Om Prakash –
About the Author:
Om Prakash writes about Penny Stock Picks – Find more information about penny stocks and hot penny stock picks visit: http://pennystockalerts.com/
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