How To Trade Penny Stock
How to Trade Penny Stocks : something I learn to do well.
Many books out there on trading penny stocks but in reality like every job you need to get your hands dirty if you really want to learn. You can spend many months or years reading and learning but not till you actually go and do it will you know and gain experience.
- Know what you are investing. For example invest in something you know like myself I know technology so I can see a potential on a penny stock when I invest.
- Invest small. I invest no more or less then $100.
- Do your research. With technology these day its not that difficult spend about 1 hour doing your research. Research like if you are buy a house or something that you will commit for over a year.
- Don’t be marry to the stock. I notice that in penny stocks there is a spike. When everyone is buying they next day they sell be careful when this happens.
- I don’t buy at $0.0002 I buy at $0.0001 I want to maximise my profit and don’t want to lose If I do lose I rather lose it all i’m in it to win it or lose it.
- Keep in mind that they are always other opportunities so don’t feel bad if you miss the train another will arrive. Learn from that mistake.
These are some of the things I come to realize when I trade in penny stock. I’m currently purchase a penny stock “PKGM” purchase it at $0.0001 now is at $0.0004 and hope it goes up. I purchase this stock back in 2017 I have about 1,740,000 shares I did my research before I purchase this stock.
The main thing you want to be prepare is to hold the stock for over a year and also a stock can do a reverse split read more about it here. A reverse split is sometimes a good thing or a bad thing. In one of my stock I purchase a reverse split happen I had 1,000,000 the split was 1:500. for every 500 shares I only had one share. My share was reduce to 2,000 shares. I did not panic I only invested $100 and anything can still happen. The worst thing I could have done is sell the 2,000 shares.
WHAT TO LOOK FOR
When I do my research I make sure that they have a website why? Well a website is like a store if they cannot afford a website or even maintain it that means that the business is not what it says it is.
- Has to have a website before I invest
- Has to have Employes
- Has to have an address of business
- Has to have social media
- Has to have history good or bad
- Has to have press release
- Has to have phone number
- CEO needs to be involve
These are some of the things I look for in every stock I invest. When I feel that they have meet my requirements I invest. Now these are my requirement see what you feel comfortable with what works for you I know this has been working for me this is what makes me feel confident on a company that will succeed not now but may be in 5 years.
