When you are trading penny stocks, you are already taking huge risks. You know that going in. One of the biggest and dumbest mistakes I see happens comes when people have a clear profit and fail to take that profit. They have no exit plan other than luck. Or maybe love?
Let me set the table here. Likely you trade penny stocks. Likely you buy penny stocks quite often, only to find out that the penny stock you chose actually was up about 15% or 20% the same day you bought – even after you bought it. Somehow, as the day came to an end, it fell to about what you paid. The next day it opens slightly below what you paid. Maybe it hits a 20% gain again the second day? Maybe it is up even more? A few more days go by, and suddenly you note that it is no longer crossing the price you paid. It is doing some kind of slow decline. You follow it for about three weeks and then you finally sell it with a loss of about 50%. Maybe that is down as much as 75% off the highest price it traded at after you bought in originally.
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