Day Trading Rules for Penny stocks - stock picks nycStock Picks NYC

Day Trading Rules for Penny Stocks

Share it now!

Day Trading Rules for Penny stocks

  • 1. SELL AND LOCK IN YOUR GAINS!!! If your a beginner and your up on a trade and you see your profit starting to go down just sell and take your profit. You can always buy back the stock once it consolidates or pulls back or in simple words just “cools off”

 

  • 2. Be aware of whats happening with the company you’re trading. Examples include upcoming events, financial guidance, press releases, SEC Filings, analyst upgrades/downgrades or anything else that can help you better predict the direction of the stock price.

 

  • 3. CUT LOSSES AT 1%-5% !!! I like to cut my losses at 3%-5%. You can place a stop loss order to be safe. Remember you can always buy back the stock when you see signs of strength so don’t be afraid to sell for a small loss because maybe you will end up getting a better entry on the dip.

 

  • 4. Think about risk management and try to set up a game plan before making a trade. Think about the percentage risk you are taking versus the percentage of reward to decide if its even worth it.

 

  • 5. If your a beginner then you shouldn’t hold “penny stocks” longterm, it is risky if you don’t know what your doing. Your aim is to buy and sell within days, hours, or even minutes. Once you gain experience and make some money then you can start holding the “penny stocks” longer.

 

  • 6. Don’t buy overvalued companies. Look at the “Market Value” of the company along with the companies financial statements.

 

  • 7. Do not jump in a stock if its already went up 200% – 1,000 %+ in one day, they tend to crash hard after the peak.

 

  • 8. If you do not like the direction a stock in your portfolio then dump it right away. You can jump back in at anytime plus there a so many better options.

 

  • 9. Don’t rely simply on charts and technical indicators. Do some real research on the company that you are trading.

 

  • 10. LOOK at Level 2 Quotes and other tools that may help you.


Day Trading Rules for Penny stocks


Share it now!