Learn To Trade Penny Stocks - Penny Stock Trades

Learning to trade penny stocks effectively can beto preset my sell order (which I always do).  I
very lucrative.usually set my sells ahead of time.  (mind you, I
Penny stocks can also be extremely risky if youplay alot of penny stocks at one time). I usually
don't know what you are doing.  Golden rule: set them where I will double my money than I
Never fall in love with a penny stock.get out (this usually leaves me profiting a few
You might be asking- What is a penny stock?  Ahundred dollars a trade)  I learned this the hard
penny sock is considered any stock trading onway, when I first started trading penny stocks in
the pink sheets or otcbb.2005, I had the get rich mindset where I would
Penny stocks are risky and require research. buy lots of shares and hold onto them with the
Alot of the companies trading penny stocks haveexpectations of making thousands and thousands
limited information and histoey.  Often they areof dollars all the time.  Needless, to say I lost my
just shell companies.  A shell company is aninitial investment in 2005.  As I do with
actual company but does not have assets oreverything else in my life, I went on a mission
actually do business.and researched so much on penny stocks and
You might be asking why people are attracted totrading because I was mad that I lost my money
penny stocks if there is so much risk involved. and I wanted to make my money back.  I am
The reason is simple- there is alot of money toglad I stuck with it but I did learn the lesson of
be made if traded correctly.  Penny stocks canNEVER falling in love with a penny stock the hard
run up real quick-  Often this is done by pumpway.
and dump schemes.  This basically means aI always do my due diligience before investing in
bunch of people get together to promote a stockany penny stock and only play a few hundred
with false expectations of what company isdollars at most on any given one.  Some of the
planning to do etc.  They feed investors a bunchfactors to look for when learning to trade penny
of fluff basically.  They run the price up, sell thestocks is to research the company  is a good
stock than dump the stock.  This leaves alot ofplace to start.  You can find alof of info there) 
what you call bagholders (People who bought intoLearn to read charts, Know the history of
the stock at the height of the run)  Now, if youreverse splts for that stock, outstanding share
bought at the low end and sold at the high endnumber, authorized shares, read any recent
than you made out.  You pretty much shouldcompany filings etc.  Visit the company's
take your profits and move on to the next pennywebsite  (You can get alot of this info from
stock.pinksheets)
For example- One of my most recent andPenny stocks are cheap, alot more volatile
lucrative penny stock trades was of a stock withwhich gives the opportunity for a much higher
the symbol TPHM.  I bought 2 million shares atROI (Return on Investment).
.0003 share price (which cost me $600.00 plus theI never recommend trading penny stocks unless
$9.99 fee for the transaction from etrade)  Ayou know what you are doing.
week later, the stock ran to a high of .0045 You can make alot of money by just investing a
(Note: I sold at .0039)  I made $7800.00 less thelittle but you need to know the stocks to pick,
$9.99 etrade fee so I profited $7200.00 off ofthe ones that are poised to run and most of all,
my $600.00 investment (less etrade fees)  andknow when to sell.  Don't fall in love with
actually, that was a mistake on my part (aa stock and DON'T GET GREEDY.  Keep
pleasant mistake)  When I bought TPHM, I forgotreinvesting and make alot more over the long run.