This is where thinking comes in. You can't sit there and let emotions get to you. Sell the position and take your profits. Traders who let their emotions get involved will think the stock is going up more. You should not let greed dictate when to sell. Penny stock traders that fall into this trap will lose most of the time. Listen to your head and sell the stock. Traders can sell and take their profits and then buy the stock when it comes back down to a support level. |
Traders need to move on to the next penny stock and wait for a buy point. This is smart investing know how to move on to the next stock. A trader needs to stop thinking that the stock might go higher this is how you start questioning your trades and will lose money. You are not missing out on more profits especially if the stock crashes the next day. Traders need to sell and walk away from the trade and be happy with a nice profit. This is a good way to lose your money by not sell and getting greedy,” pigs get slaughtered". Penny Stock Profits
Once you have made a nice profit from trading penny stocks you need to move on and prepare for the next trade. You will make more profits from walking away then more losers by staying in a position to long. Penny stocks can crash much faster after they have gone up. Sometimes these stocks can climb one hundred percent but can crash just as fast. Penny stock traders need to get out of the trade and not look for higher gains. There is nothing wrong with making a small profit then stay in the stock to long and losing money. This could indicate that the price might come down. You should also take a look at the 100 and 200 day moving averages MA to see where the stock is positioned.
Is it above or below the moving average. Remember this is for longer term trades and not day trading. You can check the support and resistance levels to see if the equity is bouncing off support and not breaking through resistance. Doing some research and due diligence will make you a more profitable stock trader Making mistakes are to be learned from or financial integrity of the trading account can be put in jeopardy.
Related Articles -