pepi-stojanovski-509192-unsplash

Five Penny Stock Tips for Beginners

I don’t speak without experience when it comes to penny stocks. While others out there may very well have some experience, there are only a few of us that have been around penny stocks as long and as successfully as I have. I always share about the same thing for beginners that want to try to learn how to successfully trade penny stocks.  I have always found it comes to these five things:

Penny Stock Tip One: If you cannot make a profit on paper before you ever start with real money, you will never profit using real money.

Was that one clear enough? If you cannot make “pretend money” trading in a practice account, you are sure to fail when it comes to real money. The funny thing is that making money on the “pretend trading sites” actually does NOT even guarantee you will make money for real. That said, if you cannot make it even in a pretend environment you are sure to fail with real money.

<script async src=”//pagead2.googlesyndication.com/pagead/js/adsbygoogle.js”></script>
<ins class=”adsbygoogle”
style=”display:block; text-align:center;”
data-ad-layout=”in-article”
data-ad-format=”fluid”
data-ad-client=”ca-pub-3328624726465490″
data-ad-slot=”4991837655″></ins>
<script>
(adsbygoogle = window.adsbygoogle || []).push({});
</script>

 

Penny Stock Tip Two: Use money you can lose.

If you expect to lose the money you put into your initial penny stock trading, you are protecting yourself from using money you need. Of course you should never invest money in anything you cannot lose. If you cannot lose it, do use it. Although this is easier said then done this protects you as a future investor, forming character around what it is to really truly invest and not just gamble. Those who turn stocks into a gamble risk not only losing money but also forming the wrong habits that will compromise there future investing. Its important to realize that stock guru is here to help be transparent but even then it is important for due diligence to be done on the behalf of all investments. Proper research and not just being controlled by the media and the swing of things should be most important when investing.

Penny Stock Tip Three: Call the penny stock companies by phone. If they don’t answer, set them free and don’t buy them.

If you cannot get a company to answer, chances are they are either fake or so tiny they are not worth your effort. There are so many fake companies (or nearly fake) on the OTC markets. There are others that are just incompetent.  You have to weed them out. Although it might make us all feel a little safer having access to a companies phone number this is no longer the case with fraudulent companies, these numbers are being produced just as fast as they are publishing fake news to help boost there stocks. Phone number info for companies and small companies is something easy to find via 411, if they are not on there and they don’t answer, don’t have any social media or emails, the good ol tale of if it quacks like a duck it most likely is. . . Its important to constantly be in the process of research and not just hype, we try to strive for that here at stock guru, its not always as easy based on so much news we re-publish but we only market approved stocks and do everything and more then what we ask you to do as an investor.

Penny Stock Tip Four:  Never fall in love with a penny stock. They are fools gold at best.

You cannot possibly know a company by a cool ticker. Don’t fall in love with a stock. Even if you actually got the CEO and he gave you that warm and fuzzy feeling you got on your first date with that cheerleader from high school. The CEO will never tell you terrible things. He may tell you nothing. If he tells you too much, watch out even more. Love and romance have no place in the market, unless your broker is a highly attractive woman with a great voice.

Penny Stock Tip Five: Take the F’ing Profit if You EVER, EVER Have One!

I have heard this a thousand times: “I was up 50% just two days ago.  Now I lost all of my gain. I guess I should hold it for another week.”   If you have a decent profit, sell the damn thing. Get rid of it. Likely you can buy it cheap in just a couple of days!

Always know that no matter how good you get or how much good news you have you can NOT control the market!!! Its important to control yourself and your money by being strategic and not Greedy!! Too many times at StockGuru people come looking for a quick buck. This is not the way we work nor the way investing should be done, this is a get in and get quickly for day traders and long term trading for those looking for an additional investment. The #1 rule is Don’t lose MONEY!!


Share this post