For the newbies who want to enter into the stock trading platform, a penny stock is a low-priced, highly speculative stock selling for less than $5 per stock usually traded over the counter and is not listed in NASDAQ or any other stock exchange. Trading in penny stocks is risky due to its volatility but traders have benefited from it once they develop a strategy of how to pick, buy, and sell and the correct timing.

People are always advised to trade penny stocks with the funds that they can afford to lose because of its risky nature but for a person determined to increase his/her income, its worthwhile trying after all for any business to succeed, you must be willing to risk.

Though it worked well for me 75% of the time, am going to discuss a strategy that I had been using before I was introduced to a trading expert by my friend.  I had opened an account with a day trading broker, so every morning I would turn on the computer and log on to my account, start analyzing charts waiting for a symbol to go down in price. By half day I bought symbols that looked like they were at the bottom. Well I had to look at past performances within the previous 7 days before I bought any penny stock.

At near the end of the trading day, I would sell all my stocks that had a capital gain of the amount I wanted which included trading fee and my desired profit. Someone once told me that it’s not good to carry your eggs in one basket so I bought a variety of symbols. At times this strategy did not work for me resulting to losses but overall I lost 25% and profited 75%.

Around April a friend of mine introduced me to a penny stock trading expert, James Connelly in his “The Penny Stock Prophet” system which has since then changed the way I trade. I used to spend my whole day on the computer but now I go to it a few times in the day. After following his strategies I have minimized my losses and maximized my gains and I don’t scratch my head wondering which symbol looks like it will go up or down. I now do 25% of work I used to do.

Trading in penny stock can be frustrating at first but when you get a hand in it, you will love it but you must be willing to risk.

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