Hot Penny Stocks

March 14th, 2011 by admin Leave a reply »

Trading hot penny stocks can be a detriment to your trading account if you buy them at the wrong time. Trading hot penny stock picks is a timing style of trading. You need to be nimble enough to jump into a hot trade with a stock that is gaining constantly without getting stuck at buying the high of the run.

Buying the stock at the top of the run just as it begins to turn down can dump out your account very very quickly. It’s not unusual for a stock to run up thousands of percentage and then drop down to a loss. It may run up again but you just don’t know, and finding out would means sitting with your stock while it tanks. Then if it does run you regain your losses but if you just bought at the right time, you can capitalize on the run itself.

If your a hot penny stock trader you will need to plan out your trade. You need to find a reason the stock will be hot and give you a strong quick profit. This style of penny trading is dangerous and so risky that most traders avoid this style of trading. That being said, some people are able to make a good consistent profit off of trading these volatile stocks.

The way I prefer to play these penny stocks is to play them safely. You buy when the stock is low and before to much action has moved the stock. The goal is to then sell at the high or when the stock is rising. Find a stock that has a “forward looking event” and a decent share structure. I prefer to have a list of these types of stocks that I’m interested in owning, this list can become very large. Then when I notice a stock being promoted or news coming out and its a stock on my list, I may be able to jump in quickly.

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    1 comment

    1. Mr. S says:

      LYJN hot hot hot

      LYJN hot hot hot

      get in before 4-12-11