Strategies to Earn Big by Successful Penny Stock Trader

The major positive point of differentiation of Penny stocks with other category stock is the return potential to give returns. Penny stocks have a potential to give huge return to an investor which the big company’s stocks are unable to provide. The return from penny stocks is very quick. The return are so huge that the stock can get double to even triple in very short time.

Strategies to Earn Big by Successful Penny Stock Trader

There are many successful traders who have made lot of money put of penny stock trade and had become millionaires. These are like Warren Buffet, Rakesh jhunjhunwala etc.  There is a long list of millionaires being produced from penny stock trade and they have followed some great strategies. The few important strategies for making good money out of penny stock trade are:

  1. Buck the Trend: Successful traders always buck the trend. Here is an important statement from Mr. Warren Buffet “Always be fearful when everyone is greedy, and be greedy when everyone is fearful”. It means to be successful in penny trade, always buy when everyone is selling and sell when everyone is buying. It is very easy to say but difficult to implement as it is not easy to catch the falling knife. But money is always made when you do something different of out of the box.
  2. Buy the Stock when it is Dump: There are always phases of good and bad in every business and no company is isolated from it. Successful traders or investors always buy the stock when their business is at dump. Most of the small investors sell their holding at adverse time in panic but whereas smart trader always accumulate at lower levels. Buying at adverse time and holding it patiently till the business cycle reverses to its good time. This strategy helps making healthy profits.

Click here to read more Strategies.

Strategies to Earn Big by Successful Penny Stock Trader (Part 2)

There are few other important strategies followed by successful investors and traders to make good money out of the penny stock trade.

These are as follows:

  1. Research and Analysis: Successful traders always pick the right stock by proper research and analysis. There are two main important analysis i.e. Fundamental and technical analysis. Fundamental analysis analyses the financials of the business and technical analysis studies the price movement of the stock. They don’t go by and invest what comes the way. This is where they are different from the small investor. Successful traders never go by trend. Rather they believe in making their own ways of trading.
  2. Invest what can be afford to lose: The most important mantra of successful penny stock traders is they invest only what they can afford to lose. It is very important when it comes to trading into a penny stock. These are very risky stock and can ruin your whole investment. If a trader can afford to lose whole investment, it is very rare that he will get into panic mode when the stock is falling. The penny stock can afford to bounce back sharply too, not only cover the losses but also give profits.Strategies to Earn Big by Successful Penny Stock Trader (Part 2)
  3. Penny pump Finder: Penny Stocks are great money making opportunity, but involve a lot of risks. The only prerequisite is that you find the right stock and trade it at the right and accurate time. Successful traders find use the penny stock pump finder to find the right stock for trading and investment. The software enabled with all the major research and strategies to find the stock and also calculate when to buy and sell the same. Many of the successful traders have made most use of this software and have earned millions out of the penny stock trade.