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Penny Stocks â Best Penny Stocks In 2010
If you are looking for the best penny stocks to buy in 2010 then you are thinking in terms of “time” and “investment” . . . and that is just plain wrong thinking when looking to buy penny stocks.
It doesn’t matter if it is 2010 or 2011 or 2012 â€¦ the year means nothing because penny stocks are stocks that you trade or scalp quickly.Â Â You don’t hold them through the year.Â You don’t hold on to a penny stock and hope to become a millionaire a year or more down the road.Â You make your money as quickly as possible and get out.
Having said that you need to understand that trading or scalping penny stocks is an awesome way to make money and make it quickly.Â Just always remember you don’t invest in them you trade them.Â Let me say that again.Â Â You don’t invest â€“ you trade.Â The reason you don’t invest is because they are very, very volatile.Â Â You need to make sure that you are not stuck in a losing penny stock that you sat on until it traded away to zero.
You need to know when to get in and when to get out so you make money and limit your losses as much as possible. Â Â In order to do that and not have to be chained to your computer all day you must come up with a manageable system.Â Â Even if you have a day job and don’t trade for a living you can have a manageable system to enter and exit trades.
You pick a penny stock that shows promise and designate a point when you will buy it.Â Then you set your trading account to exit at a designated profit point, maybe at 50% or 100% or more profit.Â Â You also will set your account to sell if it drops to a certain point so that you limit your losses.Â It really is that easy.Â Â The point is to limit your risk as much as possible.Â Â Then you go on about your day without the stress of watching your computer screen all day and worrying how your stock is doing.Â Â You’ve already set a pre-determined range of when you will take profits and sell or when you will sell to cut your losses so you can live to trade another day.
You can’t go into penny stock trading thinking you are going to invest for the long term in 2010.Â If you want to pick good stocks for 2010 that you can invest in and make money somewhere down the road, then you should look into blue chip stocks.Â Â Â That way you can hold them through 2010 and beyond and do pretty well although the profits won’t be nearly as dramatic.
Most people trading penny stocks have a penny stock newsletter service that gives them buy and sell signals.Â Â Â These services also give you the manageable plan to trade penny stocks.
You can get more information on a penny stock newsletter service and to get 3 free penny stock picks here.
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Making money trading microcaps can be very lucrative if you use the right tools.
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