Posts Tagged ‘Stock Trades’
Penny Stock Gains Can Be Staggering
Written by troy on Tuesday, March 02, 2010 | No Comments
Categories: Penny Stock Trading Tags: penny stock gains, Penny Stock Trading, penny stocks, stock gains, Stock Trades
The goal of stock trading is to make money. Unfortunately, the way it is practiced by many you would think just the opposite. If your goal is to make money then you need to give consideration to penny stock trading for the mere fact that penny stock gains can be staggering.
It is humorous that many in the investment community consider themselves successful of they return in the neighborhood of 10% on their account each year. Why is this humorous? Because a 10% gain is a good day for some penny stocks, not a year. Penny stock gains can easily run in the neighborhood of 10%, 20% or even 50% in a day. A five percent move is just an average run of the mill move. Why is this the case? It is because penny stocks have such a low cost per share.
Penny stocks usually refer to any stock trading under $5 per share. Since they are priced so low every move in the stock is magnified. A 20 cent move in a $20 stock is only a 1% move, however, the same move in a $2 stock is a 10% move. Ten thousand dollars invested in the $20 stock would leave you with $10,100 where the same money invested in the penny stock would give you $11,000. If you think that this is a large move, think again. In the world of penny stock trading, penny stock gains of 10% are small. Let’s take a look at a couple of examples.
Dendreon (DNDN) is a biotech stock. On March 9, 2009 DNDN was trading at $2.64. On April 27, 2009 it closed the day at $21.55. That is more than a 900% return in 1 1/2 months. This is the power of penny stock gains. Today the stock trades over $33 per share. This is what can happen when there is great news on a biotech penny stock.
Human Genome Sciences (HGSI) is also a biotech stock. On March 11, 2009 it closed at .48 cents per share. On July 28, 2009 it closed at $14.63. Today it closed at more than $30. That is more than a 6300% return in less than one year. To give you better understanding $10,000 invested in HGSI nearly one year ago would have produced $625,000 today. So when I say that penny stock gains can be staggering, this should give credence to it. You may want to consider doing some penny stock trading of your own.
Penny Stock Psychology
Written by troy on Sunday, April 19, 2009 | No Comments
Categories: Uncategorized Tags: Emotional Train, Stock Trades
The majority of traders spend most of their free time looking for good trades. Once they enter a trade they desired to be in, they start to squirm and lose all self control over themselves. They ride an emotional train and miss the element of winning – which is the management of their emotions. Their inability to manage their emotions leads to a downfall in their stock trades.
All losing amateurs ignore the importance of psychology. If you are not up to date with the market, or you ignore mass psychology of crowds, then you have no chance of succeeding in the market. The importance of psychology is that it focuses on reality, which is you have to live with your eyes open. To be a good trader, you have to invest with your eyes open and make neutral decisions. You need to recognize real trends and not waste time on regrets or hopes that the stock will turn around from a downfall.
Trading is similar to sky diving, rock climbing, and street racing because they all share a common risk involved. These sports involve a considerable amount of risk/pleasure. Many participants in these sports ignore the risks and take thoughtless chances. A person who wants to enjoy the risk and excitement of sports must follow the rules. When he/she reduces the risk of a sport, they get a sense of accomplishment knowing they have control over that particular sport. This same criteria involves trading. You can succeed in trading only if you handle it as a intellectual pursuit to overcome the risks. To help ensure enjoyment/success, a good trader must watch his capital funds as close as a sky diver knows the exact time to release his parachute.
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By: rob rens
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member of stockhideout.com Hot Penny Stocks and Penny Stock Investing