How does one win at playing penny stocks? How to win at this game
How does one win at playing penny stocks.
First of all you will have losers.Everybody gets them,no matter who you are.How many times do you see posters crying about stocks that went no-were,and as soon as they start to move,they are so excited like kids in a candy store,just to get their dreams crushed or if it does run GREED sets in.
I have had a few losers over the years plus many many winners,but you will never find me on here crying about it,as I understand how the game is played.
I never fall in love with a stock as it's just merchandise to be bought and sold,,same as retail stores.Mark-up
The term buy low sell high has been around a heck of a long time,,but how do you go about it?
You must have a plan,as to how much you will pay for it,and sell it for.Keep back up funds in case your stock drops,or you will be sunk before you start.
If you bought a stock @1.00 and it drops to .50,how are you going to recover,if you have no back up plan.By averaging down,you then can buy@.50and start selling on the way back up.
If the stock is at .05 and drops to .025,that's 50%loss,so you just double up and your ready to sell@.05
Just because a stock was a buck before,does not mean it will go back to that level.
So how do you survive.
You must play at least ten or more stocks the more the better.If one or three are duds,,the rest will still make money for you.
You want the oldest company's that have a long track record,so you can chart their high's and low's and how good they were at promotion over that ten year period.
With internet,,it's not hard to get the info,from their site,or just use stockwatch as they will give you ten years of the stocks charts that will give you a average over that period.
A good mixture of properties,as in Gold silver,zinc,Uranium,copper,as say copper is down they still have other holdings to play with.
I keep track of about 25 stocks and that's it,and over time I will have a good idea how they go about their business.
Promotion is key as without it a stock will do very little,no matter how much Gold they have.
The game is not all that hard,once you have applied yourself the right way.
The biggest mistake i have made over the years is not reading the market correctly,as in time to buy[ new lows at all time lows ],time to sell [ market oversold many many new high's ],or just do window-shopping.
To win you first must not lose,,so limit the greed and you will be a winner.
The percentage of gain it takes to recover.
% loss of initial capital % gain required to brake even
10 11.1
15 17.6
20 25.0
25 33.3
40 66.7
50 100.0
75 300.0
90 900,0
The cyclical nature of the market is the second most important thing that you have to know after psychology
Thou shalt understand the market and it's psychology buy