Penny stock trading does not work the same way for everyone. I don’t care where you get your information from, some of us may never be able to trade penny stocks successfully without the help of some great tools.
We have read everywhere how doing your own research is very important for any penny stocks trader.
Sometimes, even doing the best that you can to be able to win on some trades, they still go against you. You may think that you’re just unlucky, but in reality you just need to invest in a penny stocks tool which can help you trade better.
You may find it easier for you to conduct your research as well as trading in the long haul. Using free tools are great, we all like free tools. To be honest with you, I’m one of the free stuff lovers.
However, there are things that we’re doing in our lives that free stools only may not be able to help the way we want it.
That’s why It may be a good idea if you can invest in a great tool that could ensure that you have a greater chance at wining on your trades.
I’ve compiled a list of 10 signs that may be trying to signal to you that you’re in need of a paid tool to conduct your trades successful. Without further ado, let’s get to the list.
Sign # 1- You’ve been trading penny stocks for awhile, but have yet to win on a single trade.
If you have been trading and have been doing everything that is needed to win on your trades, you should at least win sometimes.
It’s not too common to find a trader who has never made a profit before. But unfortunately, it is a possibility which is very sad.
We all trade to win, not the opposite. If you’re trading every day and can’t make a profit, something is wrong and is needed to be fixed before you lose too much.
Sign # 2- Trading according to free picks from your email address.
This may be a little controversial because many traders know how to trade those picks. However, they are dangerous to trade since you have no idea as of when they might drop all the way down in price.
Trading according to those picks solely is a sign that you don’t know how to conduct your own research. Although many traders may find those picks to be helpful, many others would consistently lose their money from them.
Many of those picks usually come from other traders trying to scam you. If you know how to trade them and make money from them, that’s awesome, but if you don’t know how to it’s better not to trade them.
Sign # 3– Don’t have a valid reason for picking a stock.
If you’re serious about penny stock trading you have got to be taking your picks seriously. Many traders just trade because they enjoy the feeling when their wining, which is not something you should be doing.
You must have a valid reason for investing in a stock. Don’t trade just to trade.
Penny stock trading is a form of investment, I don’t care what anyone else says, it’s investing and nothing can change that. But if you’re trading penny stocks as a game, you’re not investing and you are the reason why you can’t make money from your trades.
You should only trade when you see the signals to buy. If you can’t find any good reason to enter a position, then it’s best that you don’t trade for the day. There’s nothing that says you should trade on a daily basis. Day-trader does not necessarily mean you have to trade every day.
You’re in charge of when to trade, which stock to trade, and how you want to trade.
Sign # 4– Not knowing the basics of penny stocks trading.
This is hard to accept, but many penny stocks traders are trading based on luck and not knowing the basics of this market.
It does happen, those traders are the main reason behind their losses. Not knowing the basics and start trading is the worse thing a trader can ever done to his or her portfolio.
Margin is when you borrow money from your broker to buy a stock. It is very similar to buying a house through a mortgage bank, according to Dummies.
Buying stocks using margin is a good way to trade; unfortunately for us in the penny stock market it’s a difficult method. For example, let’s say you buy some shares of XYZ at $4.00. Soon after you’ve entered your position the price drops and never comes back up. As a result, you would have to pay back more than you’ve borrowed.
Although many brokers won’t provide you the margin method, many of them would do because they know it’s more in their favor than it is to you.
Trading penny stock using margin makes penny stock trading even more dangerous. Even Timothy sykes does not use this method, because it simply does not work for penny stock traders.
It is considered as a form of leverage, Tim has used it once and it was by accident, according to a guest blog post from his trading challenge.
Sign # 6– Trading penny stocks long-term
If you’re trading penny stocks and doing that long-term, stop it right now. There’s no reason for you to trade penny stocks long-term. The blue chips are there for this purpose, they’re the stocks that should be held onto in order to accumulate your profits.
The blue stocks are the regular ones that are traded in the NYSE. Those stocks are safe to trade, you can hold them for as long as you wish contrary to the penny stocks.
You want to trade long-term? Then, penny stocks are definitely not for you and this is a fact.
Sign # 7- Trading in fear
Penny stock trading could be scary, that’s a fact. But that does not mean you have to trade in fear because the fear itself can affect the way you trade.
When trading in fear your mind is not in peace, you tend to make some very uneducated decisions which can cost you so much.
It is a must that you try to control your fear before you trade. We are all scared sometimes when trading, but we are the one who has control over ourselves.
Teach yourself how to escape from your fear. How can you do that? UNCOMMON HEALTH states that “breathing is the short circuit for anxiety.”
Controlling how you breath can be the best treatment for your fear and anxiety. Remember, anxiety is initiated by rapid breathing. By breathing too rapidly you’re unable to inspire the right amount of oxygen since the air is not reaching most of your alveoli.
Sign # 8- Trading while confused
Some traders trade unconsciously because they have received many tips from newsletters, friends, online, anywhere. Since they have so much information, it gets very hard for them to make up their mind on a specific stock.
That sometimes causes them to make all the wrong decisions while they could have done better if it was not for their information overload.
Searching for information is one thing, knowing how to use them successfully is another. Just because you search your information, and read many tips may not be enough for you to cut it.
For example, Michael Sincere, who is a writer on MarketWatch and also a trader states that if you can make 20% or 30% in penny stocks in a few days you should sell quickly.
Many people may misinterpret that because he does not clearly mention whether you should hold a penny stock for a couple of days or not. But the way he phrases his sentence tell us he’s talking about more than one stock, meaning you would most likely be trading more than once, which is normal.
Understanding the information you’re reading is very important. It’s the best part of your research because if you are reading and not interpreting the information accurately, it’s like doing nothing.
Sign # 9- Thinking that it’s easy to make money trading penny stocks
Penny stock trading is not easy in any shape or form. Don’t accept that from anybody because it’s just not true. If it was easy there would be more talking about penny stocks, there would be a television channel talking about them, because of the amount of money that many people would be making from them.
The percentage of traders who are wining almost constantly is very small. If you play your game right, you too can be one of those who win almost consistently.
Do you know why I say that? They are humans just like you are, the only difference that can be found in them is that they have learned most of the aspects of the market that can help them to stay on top of the rest.
If you take your time, learn the basics, learn some proven strategies, find your own techniques, then it won’t be impossible for you.
Sign # 10- Be optimist with your with your picks
Being optimist can help you in many things, penny stock trading is one them. When you’re optimist you tend to pick the right penny stock to invest in.
Unfortunately, when you’re not optimist you usually have doubts on your ability which sometimes play a major role on your loss.
Not being optimist can cause you to leave the right pick for the wrong one. Not that you don’t know what you’re doing but you just don’t believe in yourself. You should always believe in yourself in order to be successful in any thing.
According to Donny Lowy who wrote the book named The Penny Stock Trading System, if you’re not optimist about your trades you should buy a motivational book to help you with that.
Since we’re talking about paid tools to use to trade penny stocks why not list 2 of them here for you?
1- Profit.ly: If you have been trading or have been researching the webs, you should have stumbled on an article written by Timothy sykes.
He’s now a millionaire thanks to penny stocks trading. He has turned $12000 to over $1 million in a period of time that’s considered to be very short.
From his experience, he developed his teaching tool which is now helping many of his students to become millionaires just like he is.
71, 751 members, that’s the number of students who have joined his program. Some of them have already attained their goal of becoming a millionaire. In other words, Tim program is designed to challenge you to be a millionaire by using his videos and the tips that he send out to your email.
2- Penny Stocks Egghead: With this program you do not have to trade every day. They send you one stock each week which can make you lots of profits.
You don’t have to be an experienced trader, just one stock pick a week for you to trade, nothing else is expected from you.
These guys actually know what they are doing unlike the others because they are not pushing their clients to run after trades, which is very smart from their part.
Penny stock trading requires you do conduct your research in order to trade successfully; nonetheless, many of us trader are doing everything that’s asked from us but still can’t break it.
That’s why some gurus in the market create some tools and programs that can alleviate the work on us while enabling us to make money.
Those tools may not be cheap, but you can make far greater in return. That’s the good part about them!
You may think it’s in your advantage to try to use only free tools to do your daily trades. But if you’re not making any profit through those free tools, they may not be working for you.
Just because they work for some people you know doesn’t mean they will work for you as well. If you have to spend a little money to make some nice profit in return, it might be the right decision to make.
Have you ever used any paid tool for your trades? I did it work for you If you had?
Please share your experience with us in the comment section.
Don’t forget to please share this post with your friends if you like it.