Hi. I'm rather new to trading penny stocks and new to the board . Been trading for about a year and just recently became interested in playing the penny game . The question I have mainly concerns acceptable losses (not that a loss is acceptable ) while holding shares in OTC and Pinks before the decision to sell at a loss comes into play . I know the risk/profit ratio is slightly different than playing normal stocks on Nasdaq etc. but when does the average penny player decide to sell at a loss..??
I looked over the board and haven't really been able to find any solid info on what the regulars deem to be a good guideline or rule of thumb regarding this issue . As for myself with regular stocks I have a higher risk tolerance than some. I have no problem holding a stock that happens to dip on me by 15% or so... if.. and I say IF , the company has a solid background or positive data for the upcoming short term or if the recent prices indicate that a retrace is more than likely probable. Then I have no problem holding a few days longer to regain what ground has been lost. Especially in a market with the current downtrend. What goes down will usually go back up.
I know day traders have one set loss guideline.. which is usually not below 2% or so.. if any loss at all. But being I don't have the current funds to allow day trading , and the rest of us usually have to play stocks with a buy and hold mentality.. of at least a day play or to a few weeks or months holding .
Anyway .. just curious as to what some find works best for them when it comes to Red days and at what percentage they decide to sell at a loss regarding the penny stocks.
thanks for the input.