What is Your temperament?
Can you handle the pressure? If you are sweating each and ever trade and you are using money that you really can lose, you might not be right for it. On the other hand, if you find it exciting to watch Level 2 come your way, go against you, come back again and finally you end up a winner or occasionally a loser, this is more in line with your temperament.
You might find yourself at an airport restaurant suddenly in need of a fist bump or a high-five when the right price hits and closes out your position. Too bad the rest of the world doesn’t necessarily follow your favorite penny stocks.
Can you learn from your mistakes?
This is big. It is so costly to make stupid mistakes. You’re all in per your limits you set, and the price falls some more. You think – wow – this is my opportunity! YES! You decide to double down and make this an even bigger win. It falls more. Now you go into money that you never intended to use on penny stocks to further double the double down, only to lose about ten times what you were willing to in the first place.
Take the small loss is the lesson there. There are many such lessons, and I explore them on my site in many areas. Be willing to learn!
Let’s Say You’re Doing It!
You are taking the plunge, so what’s the next step?
Read a lot. Read financial reports for each and ever company.
Don’t read sponsored “equity research.” It is all bogus.
Play small. Be willing to start with about a fifth of the money in an account that you could tolerate as a loss. Try it. See if you like it.
Click on Arrow to Read More