I found this GOOD ADVICE:
Papa Bear's Top 5 Trading Tips
Rule #1: Focus on fundamentals. A cheap stock price is no reason to abandon sound financial analysis. Be picky when investing in penny stocks and insist on finding companies with solid and improving fundamentals.
Rule #2: Limit your investments to $1,000 or less. By making small bets on penny stocks, you can limit your downside risk and ensure a total loss won’t torpedo your entire portfolio. If you want to wager slightly more, that’s up to you. But don’t wager too much more, or else you’ll undermine any efforts to reduce risk.
Rule #3: Cut your losers quickly. When it comes to penny stocks, “buy and hope” is not an investment strategy. We’re after fast gains. So don’t expect to hold any penny stocks for more than three to six months, unless prices are heading steadily higher. Either these companies pay off quickly, or they don’t. If it’s the latter, sell and move onto a better opportunity.
Rule #4: Use limit orders. Most penny stocks sport lower-than-average trading volumes. If we use market orders we’ll ending paying more, which ultimately cuts into our profit potential. Instead use limit orders to buy penny stocks. And be patient. Penny stocks are notoriously volatile, which means you should never have to chase prices. Eventually a dip in prices will materialize.
Rule #5: There’s No Crying in Baseball. When investing in such a speculative area of the market, you’re bound to invest in a few duds. It happens. So expect it. As long as you’re only investing money you can afford to lose, and limit your bets to small amounts (see Rule #1), there’s no reason to shed a tear.
