Important Things to Consider:
Some methods with penny stocks take a lot of money to do right. One of the great things about this method is that the fewer dollars you put into it, the more likely it is to work. If you buy too much of one stock, you will find that as you sell you are driving the price down. You will find that in low volume stocks, your trading messed up the game. That is why things occasionally work great on paper, but fall flat when trading for real.
Never underestimate the negative affects of volume on any strategy. You should likely never own more than 10% of a week’s average trading volume. By average, I really mean that you look back about twelve weeks. You might even thing of not owning more than 10% of the slowest week during that twelve weeks.
I used to get about 50 emails from people daily early on in the thirteen year history of StockGuru. I used to see many people talking about a gain they had. Should they sell? I could never give them advice, as we picked stocks and never gave specific recommendations on what an individual should do on a particular day with a stock. Many would write me two or three months later telling me how they lost of the stock where they previously were up. I would see the email charing from particular people who loved picks while they were up, and assumed up would continue (and continue, and further continue) until it fell off a cliff one day.
Usually they fell in love with particular stocks. Love is for a mate, not a stock. Stocks do not comfort you when you are sad. They do not pay the rent when they are worthless. They do not put down payments on your home when you are running short of money. Finally, they do not pay your kids college education when they are at $0.0001.
Take those profits. Let the other sucker love the stock!
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