subject: Four Principles To Follow When Investing In Penny Stocks [print this page] If you are seasoned penny stock trader or and planning to enter the market for personal growth and be successful stock trader,, You may wonder how to get into this trade. Use these ten basic principles to help you guide you in right direction and become sucessful stock trader.
Principle one: Make rules yourself
To get back your ROI, Fix your own rules for the right time to buy and sell penny stocks Wrong timings can impact your fortune in a big way.. Make sure you are comfortable with your rules. Do what you think, For example if your neighbour sells when hot penny stocks have increased by 45%, you may sell it for lower returns, do not mind or feel bad of selling it at low ROI.. You might be more comfortable selling at a lower return.
Principle 2: Low fees brokerage is good
You are investing your hard earned money in stocks and planning for continual trading, when you select brokerages, make sure they do not charge any kind of setup fees or require you to maintain any kind of balance the best brokerages do not charge account opening fees or require you to maintain a specific balance to avoid a maintenance fee. Nor do they charge fees on a sliding scale based on how many shares you are buying and selling at a time.
Principle 3: Research and Research
Do research on your own and do not rely on others advices and tips you get in your inbox. It is ok to rely information based from penny stock newsletters, but be sure decision is made coupled with your own research Do consider the tips you get from penny stocks newsletters, but be sure you do your own research and base your decision to buy a certain penny stock Do not buy the so-called "hot stock ready to explode upward" that you find advertised on a random fax left on your company's fax machine. Do not buy a stock because your accountant got a hot tip about a certain company. Do your own research. With the advent of the Internet, it is as easy as clicking the mouse a few times and you are privy to the financial of thousands of companies.
Principle: Cheap penny stock investment
When you go for penny stocks, you need to be extra cautious as they are more risky than other investment and they do need proper analysis They are not an easy way to make money.
by: Ari Gold
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