5 Penny Stocks To Buy Or Ignore This Week After A Big Month So Far
How do you make money with penny stocks? This is a frequent question that many new traders will ask especially if they have small trading accounts. For most, the idea of finding penny stocks to buy has everything to do with scoring a quick gain. But, similarly, these novice investors get caught in a trap.
What I mean by this is they treat penny stocks like some type of “bet”; either I win big or I lose big. But the fact of the matter is that penny stocks, just like blue chip stocks, can produce consistent profits if you treat them like investments as opposed to a roulette table bet.
Let’s face it. The average newbie trader might buy a penny stock, plan to start taking profit when they are up a small amount, and then move on. But the reality for so many of these same newbies is that once they’re up a considerable amount – even 20% – they let greed control the trade. “Well, if it goes up just a little more, I’ll make X.” This is a great dream but keep in mind that penny stocks are very volatile. Just as quickly as they rise, they can drop back to or even below your entry point.
The Basics Of Penny Stocks
So if you are new to penny stocks, keep the next sentence in mind. You can always find another penny stock to trade and you can always re-enter a trade if you see it as a potential winning trade after you sell out of it. All-too-often, people get emotionally attached to certain stocks.
But once you figure out how to remove emotion from trades, you’re more likely to make better decisions when it comes to both selling and buying penny stocks. With this, it’s also important to bring up the fact that research is key.
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If you’re looking for penny stocks to buy, make sure you do plenty of research to determine if there is a possible catalyst in play and furthermore, if there’s a possibility to see appreciation in the market. With this in mind, here’s a list of penny stocks to watch this week after a big month already