Real Estate Innovation

How To Trade The Best Penny Stocks To Buy

If I had a penny for every time someone asked me “so what are the best penny stocks to buy?”, I’d have a heck of a lot of pennies!

Then they’ll always tell you their ‘war stories’ about how if they did this, or had they stayed in, or had the sold out, they would have made 10 billion dollars in a minute. And more annoyingly, they’ll tell you about how what this analyst said didn’t work, or that some system doesn’t work, or that the stars weren’t aligned in their favour.

Hogwash!

The reason why these guys (and gals) are not making money is because they don’t know how to trade. Even if the best penny stocks to buy hit them in the face, they still wouldn’t know because they simply do not know how to trade.

Imagine driving a Ferrari without knowing how to drive; that’s about where a ‘trader’ who knows the best penny stocks to buy but who doesn’t know how to trade is. Now that ladies and gentlemen is a dangerous game.

Don’t fret if this sounds familiar. You just need to know how to play the game; you need to know the rules. You need to know the rules that will dramatically improve your trading, and when you do find the best penny stocks to buy, you’ll know how to play them, and how to profit from them:

Have A Plan And Follow It

Just like NFL teams go into a game with a solid game plan, you need to have a plan in place for when you will enter and exit the trade, and how much you are willing to risk on the trade. The best penny stocks to buy aren’t always the best unless you plan to make money with them.

Preserve Your Capital

Making profits is important, but it is even more important to preserve your capital when trading. Risk no more than 5% in each trade and you’ll survive long enough to keep trading. For overnight trades, if you’re having trouble going to sleep, that’s a surefire indication that you are risking more than you are comfortable with. Close the position so you can get some sleep.

The Trend Is Your Friend

Never go against the trend. If the market is bullish, go long. If you the market is bearish, go short. Why swim against the tide, when it is a lot easier (and profitable) going with the flow?!

Trade With No Emotions

Greed and fear can play a huge part in the way you trade. Unfortunately, when either gets involved, it usually isn’t very profitable. Leave your emotions out of your trades, and just follow your rules.