Penny Stocks

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Penny Stocks Gambling with PurposeYou hear
investors talk about investing in the stock
market all the time. They point to the fact
investors who stick with their stock portfolios
for the long haul almost always makes a profit.
Penny stocks are the flip side of the coin. You
need to practice the strategy of getting in quick
and moving on just as quickly. Penny stocks are
the wild card of stocks, a gamblers
delight.Strategies to Increase Your Winning
Hands in Penny StocksJust because penny stocks
are inexpensive does not mean you should be
gambling blindly. Great poker players understand
the cards in their hands, keep an eye on the
cards which are face up, and take calculated
risks. As an investor in OTC penny stocks you
must do the same thing.You start off by
studying the facts about any company you are
considering investing in. What have the buying
and selling trends been for the stock? Does it
consistently trade in high volumes? Are there
current financial reports available, and how do
they look? Has the company been in the news
lately in either in a positive light or with very
negative news?Answering just those few simple
questions can help you determine if the stock is
worth taking a risk on. If the stock is trading
in only small volumes you should probably steer
clear. It will be hard to sell rapidly when you
are ready to take your profits and move on. If
the company is currently riding out negative news
but their stock has stayed steady, you may want
to avoid the stock, also. It could be a stock
ready to take a rapid dive in the value. On the
flip side, if there has been press releases and
positive news about the company which has not
resulted in immediate gains, it may be a great
opportunity if all other factors do not bring up
stop signs.
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Is Your Gambling Strategy Holding or
Folding?Almost any highly successful penny
stocks trader is going to tell you they fold
their hands quickly. They take profits fast and
losses even faster. They jump out of a penny
stock before it can tumble to zero. If you want
to play the longer term strategies of holding
onto stocks and riding out the storms it is best
to move over to high value, big board stocks
instead of dealing with fast paced volatile over
the counter penny stocks.Always purchase your
stocks with an exit strategy in place. Set a
profit margin you wish to achieve and a loss
level you will not fall below. When those
triggers hit, take your profits or losses
quickly. This helps you hold onto your money and
increases your odds of finding more winners and
avoiding losses.Penny Stocks - The Low Buy-In
Game with High RiskAlways keep in mind penny
stocks are the equivalent of joining a game of
poker with a professional for a low buy-in. You
need to watch your cards closely. You need to be
prepared to play for the win, but know when to
fold. Do not take your eyes off the game for a
moment, or you may be surprised to discover your
money has disappeared.It is a fun, fast-paced,
high reward game. Take time to learn how to play
the Penny Stocks game properly, and you will come
out on top.