If you're seeking some excellent penny stock trading advice, that is you are not sure the way to go about picking penny stocks or who to listen too when it comes to very good assistance then take a minute to read by means of this fast and insightful write-up.

The first thing we're going to cover is Penny stock risk. Think me when I say this, penny stocks are risky and it's significantly less difficult to lose your cash trading penny stocks than any other monetary instrument. The second thing we will probably be covering is regardless of whether or not to invest in penny stocks or to simply trade them. Finally, we're going to discuss a couple quick techniques I use to pick penny stocks.

Initial, let's talk about Penny stock risk. Now everybody who is anybody inside the penny stock world knows you could lose your shorts trading pennies. Talk to any person who trades penny stocks and they are going to give a number of stocks that price them huge. It's the school of tough knocks and everybody is going to discover the challenging way, which includes you, you will lose cash until it finally sinks in. Penny stocks are unlike that NASDAQ or NYSE. They don't have to follow the SEQ rules and guidelines like the larger institutions for that reason you will discover that penny stocks will lack fundamentals, they will have some crazy looking technicals and they could be difficult to sell. That's correct, unlike the NASDAQ, where you place a sell order and it is executed practically instantly, a penny stock could take days or weeks depending on what it really is you're trying to sell. There has to be a person interested in buying it in case you are selling it.

Okay, now that we know Penny Stocks are risky, lack superior technicals and fundamentals, let me ask you a question. Why would you invest in something that you know absolutely nothing about for the lengthy term? Gems are rare in the penny stock world. Positive they exist but you will make a lot more income flipping burgers as well as flipping your penny shares then you'd holding on to them. That's why we say trade it like a bad habit. Get in, make your profit and get the hell out! If you're really interested in investing in your future then save your dollars and locate a blue chip to throw your money at. The only factor you'll be holding in the penny stock land is really a large non recyclable plastic bag in case you determine to hang on to your share for too long.

Finally, how does one discover the next huge 5 bagger? When I trade penny stocks I follow the crowd. When the buzz is in the air about a specific stock I check it out and ensure the trading day is going very good across all boards, the sector the stock is within the green, and insure the stock has momentum and volume so I can unload the sucker if it starts heading south.

Develop a twitter account and follow as lots of penny stock newsletters as you'll be able to, join a couple penny stock forums and pay attention to their tag clouds to build your list. You can also, invest a couple dollars in paid newsletters. You'll find some superior ones out there that are well worth the dollars, www.pennystockpro.info is 1 newsletter that comes to mind, and you get a life time membership for 97.00. If none of this appeals to you, you could generally create a list of symbols and throw darts at it, just kidding. You will do greater with twitter, the forums along with a paid stock picking service. In the event you desire to know why I suggest newsletters, go to www.PinkSheetsStock.info and download the totally free report that discusses the inside scoop of penny stock newsletters.

Alright, congratulations you made it via my article in 1 piece. Here's a summary of all that penny stock suggestions that I gave you.

You now know that penny stocks are risky due to the fact they're not subjected to all of the regulations put forth by the SEC along with the larger boards. As a result, they frequently have little to no fundamental analysis and their technical charts can normally be misleading and you will find times when penny stocks have trouble with liquidity.

You now know its wise to trade these stocks like a crummy baseball card then to hold on and hope for large gains simply because Gems are rare and bag holders are several in this game.

Finally, it is possible to make a daily list by using twitter, forums and newsletters as a resource.

I hope you discovered this penny stock advice helpful and please go to www.PinkSheetsStock.info for more Penny Stock Advice.