Penny Stock Tip: Most Important Trend

For those of you new to my website upon reading you’ll quickly find out I really like penny stocks. The experts say they’re dangerous. You can lose a lot of money really fast. On the flip side you can also make a lot of money really fast. With that in mind how can someone invest in penny stocks while avoiding some of the risk? I’m going to tell you an extremely valuable tip which can make you a large amount of money.

There is at least one trend in penny stocks that is always consistent. In penny stocks, generally speaking, these stocks almost always decrease in price. Why? If they were trending upward the vast majority of the time they wouldn’t be penny stocks. Makes sense right? Because penny stocks trend downward it’s not a good idea to “go to the well” so to speak very often.

Personally I day trade in penny stock. I don’t day trade every day. I think this is a bad idea to do this. Personally on a good week I’ve only seen 3 to 5 good trades at most. Some weeks I see no good trades. When that happens I don’t day trade or trade at all. I believe if a person wants to make money in penny stocks they need to have a plan, a goal, and a strategy before they decide to make a move. They need to have some sort of idea they will profit. At the very least that’s how I operate. Also don’t invest with an addiction type attitude.

I don’t think it’s a good idea to keep day trading after a profit is made. Unless an investor sees a really good play, which would be the exception to this rule, continually reinvesting after a profit is a bad idea. Self control is a major factor in investing in penny stocks. If you lose control you’re going to lose your money. Nobody wants that.