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Penny Stock Tutorial
and Strategy
- Never put all of your eggs in one basket. Even the best stock
in the world can be risky. Spread your investments around in several
stocks and refrain from using a large portion of your account on
a single stock.
- Always have settled funds in your investment account! The worst
feeling in the world is seeing a perfect stock buying opportunity
and having no funds to make the purchase. A simple guideline is
to never have more than three-fourths of your total investment account
balance tied up in stocks at a time.
- Make trades of at least $500. Any less would defeat the purpose
of investing, as commission costs would eat up any profits. For
instance, if an investment of only $100 was made and your online
investment company charges $10 per trade, you would have to make
at least a 20% gain to break even. On the other hand if a trade
of $1,000 was made you only need a 2% gain to break even.
- At the bare minimum we recommend a start-up investment account
balance of at least $1,600. This way you can hold up to 3 $500 stock
positions at a time and the extra $100 would cover broker commissions.
However, an optimal minimum account start up value is $3,200 so
as to abide by the guideline of holding less than three-fourths
of your investment account balance in stocks at a time as highlighted
above in tip #2.
This is only the tip of the iceberg. The above tips are only basic
guidelines and there is much more detail involved in our trading strategies.
Trading penny stocks and getting positive gains from them requires
a bit of experience. Luckily we are here to provide information to
help you gain this knowledge quickly. More information can be found
and explained when you join our Penny Stock Signals service:
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