posted
I was wondering, on average how much money you guys/girls trade with per penny stock? I understand that if you are confident in a certain stock, you would put more money in but whats the average? $1000?... would it ever be appropriate to trade $10000? under any circumstance...
posted
trade only with what u can afford to lose usely only 1-5% and then set a stopping point that if it turns bad sell and take a small lose a 5-8% lose on 1-5% of ur money lets u stay in the game longer and learn and then start winning manage ur loses and the profits will take care of them selves
Posts: 307 | Registered: Sep 2004
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posted
I like between $500 and $1000, I have went higher but usely not. Swing trade (trend trade) or daytrade pennies, never hold long. This market is easily a money pit if you pick the wrong stock. One can drop so fast you can't catch it. If one starts to drop put in sell lower then bid to catch the withdrawal. Even the best loved pennies can make $10,000.00 a $1000.00 quickly. For example, I didn't take my own advise and bought a stock I thought was going places at .10. It went to .18 and I did trade but bought back at .09. It went back to .18 and I held this time. I just sold it at .02. Live and learn. I think that stock will come back later but one year of holding and I could have made a lot of money off that $4,000.00 investment that I sold for $800.00.
Saying that pennies also can give great gains. It is easy to get a 25 to 100% gains in short work. 1000% isn't unheard of either. Also remember not to get greedy when the gains come. Once the run starts to slow down sell. If you missed out on larger gains so be it. Don't look back, take any profits and run.
Also, this market is easy to fall in love with a stock that will make you millions. Well, that rarely ever happens and you usely wait around until you start losing money and may hold till you get it back but in the mean time you lost a lot of potential gain somewhere else. Pennies are good for one thing. Short, fast plays for a quick buck.
Ric
Posts: 4405 | From: Bristol, Tn, USA | Registered: Aug 2004
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posted
I just started trading, so i needed a few pointers on money management. Nice visual aid 1bigtip. the comments from all of you were helpful, i will keep these pointers in mind. Thanks for the help!