Tuesday, April 3, 2012

How To Maximize Profits Trading Penny Stocks

New to Trading?

Brought to you by
 http://www.amazingpenny.com/


      The stock market can be a scary place, especially for first time investors. That is why we have composed a list of our most important rules of trading for you to consider before each trade.

1. Always have a trading plan both before and after you enter a trade position.

2. Be sure to have a close exit point just in case the unpredictable market decides to head south. (Use a stop loss if available through your preferred broker)

3. Make sure you have an adequate reward to risk. If the profit doesn’t benefit the trade avoid the entry.

4. Manage your money efficiently and always calculate your position size.

5. Discipline yourself to trade without emotion. If you feel a stock is in a down trend, chances are it probably is.

6. Beware of the first hour of trading it is know as “amateur hour” or “sale only hour”. (During the first hour of trading many savvy investors unload their shares on new investors when they think the penny stock price will be considerably lower in the later day)

7. Most Important! Never invest money in penny stocks that you can not afford to lose!

      Penny Stocks are very speculative and involve an extremely high risk. Although, If you learn and follow these simple steps you can potentially earn HUGE profits.
      
      Successful traders make HUGE profits trading micro-cap stocks everyday because of their low price and high profitability. Many investors have seen gains of 500% and more within just a few hours/days of trading. If a stock is trading at the $.01 level and increases to $.02 your investment has immediately doubled.
Stocks on the “BIG” exchanges cost much more money per share. Because of that it can take months or even years to return a substantial profit.
      
      Micro-Caps are primarily start up companies who have not yet reached their full potential. There has been many penny stock companies who have made it out of the micro-cap section and moved on to the bigger boards. Here are a few examples:
Netegrity
Started at $2.18 and went to $73.20 that’s a 3487% gain!!!
Inhibitex
Started at $2.35 and went to $24.08 that’s a 925% gain!!!
Cellstar
Started at $1.44 and went to $13.50 that’s a 837% gain!!!

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      With our stock alerts you will be among the first notified of the top trending penny stocks on the market today. Our team of professionals scan through over 35,000 micro cap companies on the OTC market each day to bring you the latest news articles and hottest trending stocks on the market!

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