Hey, I’ve got a secret to tell. Of course you want to make some explosive gains in investing, right? Well instead of hoping and thinking that it sounds too good to be true, rather follow these tips by Penny Share investors on some of the secrets to maximum Penny Share profits.
As an investor never ignore liquidity factor in penny shares
Do you want to make a profit right? Well, you definitely won’t make it if there are no buyers for a share. As these equities generally lack a following in the investment community therefore, liquidity is a serious concern. It’s not uncommon for retail investors to get stuck in a position for several days or weeks until there’s enough supply or demand to enter or exit, experiencing serious price fluctuations along the way.
Keep track and record of all your penny stock trading moves
Track all your trades. The ones you’ve won in and even the ones you’ve made a loss with. Having a record of every move you’ve made helps you learn how to be better in the future. If you’ve taken a loss on a stock you’ve covered, you can go back, check your notes and see how you might have done things differently.
The stigma that a lot of people have towards penny stocks means that most of them operate according to pretty predictable patterns. If you can learn these patterns and learn when they’re telling you to short a stock, you can achieve some pretty huge returns.
Don’t buy a share outside your quoted price range
Penny shares are volatile. They often move in a single day. The biggest mistake new investors make is buying a share at any price. Many investors could buy a share after it has jumped in a day, just to see it drop back to its initial level the following day. To avoid this happening set a limit order when you want to buy a share.
Basically this means you tell your broker that you only want to buy a share below a certain level. If the share goes up higher than that, you won’t buy, even if it means missing out. Rather be safe than sorry. Missing one or two opportunities isn’t the end of the world, but buying a share higher than you should, could blow your profits out of the water.