STREET DOGS: Penny stocks rules
Some penny stock trading rules you might want to abide by
Some penny stock trading rules you might want to abide by: Don’t invest more than you can lose. Aspirational thinking is great – aspirational buying is not. You will fail more often than you will win. Greed and fear result in bad decisions. Don’t chase the ask. You missed out. There will be many other opportunities. A common question that I get is, "How do you find the next big runner?". The truth is most penny stock traders don’t live off the big runners, only the promoters get the big scores. The true trader looks for opportunities and exploits them over and over. You’re down 20%. Get out. It might come back up, but so what? Live to trade another day. If you don’t know when to get out you’ll end up holding the bag you don’t want to be holding. Averaging down is pretty dumb too. These aren’t like blue chips that go down a few percent before bouncing back and resuming their upward climb. Penny stocks have a tendency to do exactly the opposite: going down a lot, before going down fur...
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