How To Trade The Best Penny Stocks To Buy
Whenever you tell anyone you trade penny stocks, if they’ve dabbled in the market, the first question without fail is always “what are the best penny stocks to buy?”
Then they’ll always tell you their ‘war stories’ about how if they did this, or had they stayed in, or had the sold out, they would have made 10 billion dollar »”>billion dollars in a minute. And more annoyingly, they’ll tell you about how what this analyst said didn’t work, or that some system doesn’t work, or that the stars weren’t aligned in their favour.
Balderdash!
The reason why these guys (and gals) are not making money is because they don’t know how to trade. Even if the best penny stocks to buy hit them in the face, they still wouldn’t know because they simply do not know how to trade.
Could you imagine driving a Lamborghini without knowing how to drive? It’s the same if someone knew the best penny stocks to buy but just didn’t know how to trade. That’s a tough game to win when you don’t know how to play.
Don’t fret if this sounds familiar. You just need to know how to play the game; you need to know the rules. You need to know the rules that will dramatically improve your trading, and when you do find the best penny stocks to buy, you’ll know how to play them, and how to profit from them:
Plan Every Trade, Then Follow The Plan
Just like NFL teams go into a game with a solid game plan, you need to have a plan in place for when you will enter and exit the trade, and how much you are willing to risk on the trade. The best penny stocks to buy aren’t always the best unless you plan to make money with them.
Capital Preservation Is Crucial
The goal of the game is just as much about capital preservation as it is about capital maximization. Regardless of how much money you’ve got to trade, do not risk more than about 5% in each trade…even that may be an uncomfortable number for most. If you’re holding penny stocks overnight, one way to test your comfort level is if you can sleep at night with that trade on; if you can’t sleep, you’re risking too much.
Befriend The Trend
Never go against the trend. If the market is bullish, go long. If you the market is bearish, go short. Why swim against the tide, when it is a lot easier (and profitable) going with the flow?!
Trade With No Emotions
Greed and fear can play a huge part in the way you trade. Unfortunately, when either gets involved, it usually isn’t very profitable. Leave your emotions out of your trades, and just follow your rules.
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