Posts Tagged ‘Profits’
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 Thoughts for 9/28/2009
Written by troy on Sunday, September 27, 2009 | No Comments
Categories: Uncategorized Tags: dynavax technologies, edge petroleum, Penny Stock Trading, Profits
I would like to add a couple of ideas to the watch list. The first is EPEX. This is a low price penny stock called Edge Petroleum. The stock is in a general uptrend and a pullback to .49 may cause me to enter the stock. I believe it closed around .52 on Friday. Would only be looking for a small move out of this stock, maybe something along the lines of 10 cents or so. Of course that is a 20% move which I will take any day of the week. Remember I am a trader, not an investor.
The second stock is a little pricier. It is Dynavax Technologies (DVAX). It closed at $1.78 on Friday. If it reached $1.75 then it would have closed the gap created on September 10th. I am willing to enter it now and will probably buy shares near the open assuming it hasn’t run up dramatically.
Still keep an eye on PED since it sits on a couple of different penny tip newsletters and my guess is that they will suggest the investment again in the near future. The same can be said of XFN. This little phone company actually makes money and is worth a look. It is on the same newsletters.
GRO still looks OK and probably presents a decent entry spot. The same is true of MRNA.
I would wait a bit on XOMA. Friday’s action was a little disconcerting.
I may give FREE another look on Monday. It may provide a near term rally though probably nothing spectacular. However, you can make unspectacular profits quite often and still make a good deal of money.
Good luck and happy trading.