MONITOR YOUR PENNY STOCKS ACCOUNT
No one should ever has to tell you that because it is the number one principal in trading penny stocks. The activities that are occurring into your account, such as your transactions should be well controlled. When ordering shares it is a must that you check if you have received what you paid for. You cannot give your broker all your trust, you have to check if your order is not short in any way possible.
I haven’t dealt with an issue as such before, but I always try to stay a step ahead. It’s good to practice common sense, you work hard for your money you do not want to give it away like that.
Don’t buy with no more than 5% of your portfolio from one tiny company
Penny stocks that cost under a dollar are usually the ones that are the most delicate. It is in your best interest to not spend most of your portfolio in them. Like I said from one of my previous post, don’t put all your money into one company. I know they are more attractive because they are cheaper and you can make lots of money from them, but the attractiveness also comes with the precariousness.
In order to control your gain or loss in day trading you have to be patient. Sometimes you may have to spend a whole day starring at you PC’s screen looking for the right stock to buy. It is a bad strategy to buy just to know that you own some shares. Being patient in this market is what would dictate your success.
The best day trading strategies involve often going a week or so without a trade, because you must wait to get the best prices. Impatience immediately negates the effectiveness of the day trading strategy. Says Peter Leeds.
There’s nothing wrong with going through a day without playing, I know that it might feel like a hobby for many of you, but keep in mind you are using money. If you can’t find the right stocks to buy sometimes, don’t buy at all. It’s better not to buy than having to lose your money due to lack of patience.
Do you think it is better to buy than to stay away for a day?
That’s the concept many day traders got wrong, they claim it is better to buy because there’s still a chance to win. I am not arguing against them, because there is still a chance as they claim, but in my opinion you should not rely too much on chances trading penny stocks.
If you want to have control over your portfolio you will need to be very realistic with your decisions. Don’t just do what you hear other people do, something might work for them, but gives you a totally different result.
It might be difficult for you if you are new in this venture, but all it takes is the time to learn the strategies or methods that will build you into a great penny stocks trader.