Posts Tagged ‘Penny Stock Trades’
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 Stock Trading – How to Pick Them
Written by troy on Thursday, January 29, 2009 | No Comments
Categories: Uncategorized Tags: Penny Stock Investor, Penny Stock Trades, Penny Stock Trading, Understanding Stocks
Finding out which Penny Stocks to trade:
1. Time and Experience
In order to maximize our profits we are making use of a number of trades using small low risk sums that snowball into the big money. Often, Penny stock traders put in the time, months and years to get a feel of the market and develop a penny stock profit gut instinct. After analysing trends, data, making money on some and others, can he develop an understanding on how to trade penny stocks, and even them he can still on his picks.
2. Penny Stock Analysis Systems
There are many “penny stock trading systems” available. These systems help you identify trends and profitable opportunities as they happen. The main problem is systems takes a lot of time and effort in order to study historical trends..
Two computer programmers have created a piece of software which do the following:
-Scans stocks looking for companies which are forming bullish trading patterns
-Companies who stocks show signs of increase
-Records historical information constantly
-Learns more and more over time
-Outputs recommendations of stocks it thinks should be bought and sold
These recommendations are only made when the software is confident in the outcome, based on the huge amount of data it has analyzed.
In the volatile penny stock trades market, not every prediction and recommendation by the software will be correct. In other words…the software cannot predict every possible outcome. The software does account for the trade recommendations which do not work out and is reported to create gains of 105.28% per week.
By: Sherman Choo
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