Posts Tagged ‘Exit Strategy’
Increase Trading Profits with Penny Stock Trades
Written by troy on Monday, March 01, 2010 | No Comments
Categories: Penny Stock Trading Tags: diversification, Exit Strategy, Penny Stock Trades, Penny Stock Trading, penny stocks, Profits, stock positions
If you are looking for a way to give a boost to your trading profits you may want to consider using penny stock trades. Penny stocks have the ability to make large percentage moves. If used in conjunction with your normal trading patterns, penny stocks can help increase the percentage return on your account.
If you do not normally trade penny stocks I would recommend that you take a small portion of your account and dedicate it to penny stock trades. You may want to consider using about 10% of your account for this purpose. As you become more adept at trading penny stocks you can increase the amount you dedicate to this type of trading.
Penny stocks have been know to make 20% – 100% moves with a single trading day. Higher prices stocks that you may be trading do not have the ability to make similar moves. You can look at makying penny stock trades as sort of a diversification for your account. This portion of your account would obviously be the riskier strategy.
Depending on the amount of money that you will be using will determine how many different positions that you may trade at the same time. Never include more than three penny stock positions. There is no need to diversify further since this is ony involving 10% – 15% of your account. In fact, if you wish you can carry only one position at a time.
Since penny stock trading can be volatile and risky at times know your exit strategy for each of you penny stock trades. If your exit strategy has been triggered then exit the stock and wait for a new opportunity to enter another trade.
If used properly, penny stock trades can be used to effectively increase your trading profits.
Penny Stocks to Trade
Written by troy on Tuesday, September 22, 2009 | No Comments
Categories: Uncategorized Tags: Blue Chip Stocks, Exit Strategy, Trade Penny Stocks
Beginning today I will be letting you know about penny stocks that I believe may provide an opportunity to trade over the short term. These penny stocks are not recommendations on my part; they are merely stocks that I am watching as a possibility for a future trade.
Normally I hope to only be in the trade for a max of 3 – 4 weeks. I am usually looking for a pop up at least 10%. I am not greedy and have no intent on holding these companies long term when I do enter a trade. I am looking to make a profit and get out. Remember we are trading penny stocks not blue chip stocks. Many of these stocks could get negative news that could greatly impact the price. I don’t want to be in it if that happens.
So at the end of each day (as often as I am able to get around to it) I will provide a list of stocks that I believe should be watched for a potential entry. As always, make your own decisions and have an exit strategy in place should you choose to make a trade.