Audiboy gave you some good advice. Mine will be similar. I am not an expert. Still a novice myself, but I can tell you what I have learned so far:
-NEVER get emotionally tied to a penny stock. Again NEVER!!
-Get some basic education. I have a book called "The Trading Book" by Anne-Marie Baiynd. I have read through it and then went back and highlighted areas. It helps you get a good understanding of swing trading, day trading, and holding long. Also helps you learn charting. You really must learn how to read a chart and know what to look for.
-Get on You Tube and look up videos on how to read charts. It's free and some are very helpful.
-Make a plan and stick to it. For example, lets say you decide to follow Dukes picks and you start with $1000.00. Then buy $1000.00 of the pick, and put a sell order for 25% gain. So if all goes as planned, you pick up 250.00. Now you have 1250.00 for the next pick. Do the same. Now this isn't foolproof. Things can go wrong, so you have to watch it carefully, and monitor the msg boards. If its getting rough, then GET OUT! Only allow a certain % drop, then sell.
-Dont get swayed by the message boards saying, it's going through the roof! ,it's got so much room to soar, blah, blah. Truth is, it just migh go higher, but when greed kicks in, you usually lose. . Stick to your plan.
-Once you have built a decent base, start taking your profits out of your trading account and put them to good use elsewhere! Too much in your trading account causes temptation to set in!
-Stay away from Penny Stock Promoters. The majority of them are front loading and you get screwed. Even the ones that offer "premium" memberships for a price are still front loading. They make their money on the newbies. Once the newbies wise up, they stop following. Then a whole new crop of newbies show up and the pattern repeats.
-if you understand charting, then you will know what support and resistance is. Always good to buy at support and sell at resistance levels. Good safe rule to follow.
-Do your DD, but don't get too consumed with it. If you are a day or swing trader, it's not really relevant to know all the history and details of any given company. I usually will do a quick check on otcmarkets.com and yahoo finance. I stay clear of the pinkies that have a yield sign or skull and crossbones sign up on otcmarkets.
-And finally, realize that most new traders lose money. It's a scary thing, and sometimes it makes me literally sick to my stomach and ruins my day. HOWEVER, it you don't brush it off, learn from your mistakes and continue moving forward, then you will remain an unsuccessful trader. You can turn $500 into a lot of money if you just follow your plan. Trade conservatively, small profits, and keep building.
Remember, I'm still a novice. I have LOTS to learn yet. But this is what I have learned so far. Take my advice for what it's worth which probably isn't much! Good luck to you and all of the other newbies on board.
If I can help anyone make money, then I will be happy :)
All of this is just my OPINION. Please do not make your decisions based on anything I have said, I shall claim no responsibility for what anyone does! Lol!
AI
