Penny stock trading is filled with trial and error for new and expert traders. Their failures state that penny stock trading has no certainty. Everything that works around penny stock trading is happening at a fast pace, possible can become possible and vise verse. If you are planning on making it a living, you should prepare yourself. Even though penny stock trading requires small investments and promises huge revenue, you should not be confident which has been the mistake of other penny stock trader.
They are certain with their actions and were blinded by the revenue they made sudden decisions that greatly affect their stock trade. As a result, these traders lose a lot of money. Now that you are aware that Penny Stock is not easy as it seems, you should follow this guideline if you are planning to make a living out of penny stock trading and if you are interested in getting the Best Penny Stocks.
As much as possible, avoid Pink Sheet listed Penny Stocks. Compared with the stock listed on the major stock exchange, over the counter or pink list market are more susceptible to frauds and trader manipulation because they have fewer regulations. Unlike the major stock exchange that has stricter requirements, they maintain for their compliance.
be cautious about promotional messages. To increase exposure and to lure in traders, many over the counter stocks are being advertised or promoted to the point that they are using messages saying that the stock will be the next big thing and others. You should not allow yourself to get caught with these false promotions. As the next big thing in Penny Stocks was never been predicted for anything can happen in the trading industry.
like with any other guidelines, only trade on stocks with volume. Frankly, penny stock traders always have something to look at. As a penny stock trader, you should look after stock with breaking news because they are more likely to trade at 45-50x in volume which means they are achieving 6-10M shares of volume a day. If this happens, do not think twice for this is the best day trade a penny stock.
Continue making a living in Penny Stocks one trade at a time. For a daily living, you should not think of hitting the home run meaning making 15-20K in a single day. On a daily basis have a goal of $500-1k a day which is enough for a long term goal. With $500-1k you’re an annual profit you can hit your quota of 100-200k and instead of investing in penny stocks focus yourself with trading.
Resources: http://www.affordablestock.com