College Stock: Penny Stock News

The Dean of Penny Stocks has suggested to the CollegeStock Community a number of times that “getting in early” isnt the only thing that will yield penny stock profits (although this does help).

And why’s that students? To profit from a stock, whether it’s 5% or 500%, you must have an exit strategy. This can be specific to each stock you hold or based on stops for gains and losses, which The Dean will cover in one of many educational segments to follow.

As always, The Dean urges the entire student body to always do their homework and only invest money you can afford to lose. Investing takes patience, timing and, always, a little bit of luck to see penny stock profits.

Penny stocks are incredibly unpredictable and it takes a lot of experience to nail down an investment strategy. Of course, having a plan, or investment strategy, is your first step to making money in the stock market.

The Dean knows penny stocks will remain an attractive investment for years to come because people are looking to cash-in on stocks which are, for the most part, highly speculative, and therefore risky, in nature.

While a combination of strategy, experience, timing and quality of information cannot always guarantee stock market success, The Dean believes that learning how to profit from penny stock promotion can be an extremely lucrative adventure.

Here are some mistakes to avoid when trading penny stocks:

• Don’t be a Penny Stock Chaser and buy into a stock when its already seen a major upturn. Many people lose out on stocks because of this so don’t get excited, buy in and lose, when you can plan ahead and educate yourself to profit from the many other penny stocks to come in the future.
• Have an exit strategy before you buy in. For example, if you buy a penny stock at $0.50, plan an exit at a previously established point (20%, 50%, etc.). It’s always better to make conservative profits now than have to hurry to minimize your losses at a later time.
• Pick your resources wisely. Think about why a newsletter, broker or any other pennystocking resource is suggesting you buy a stock. Many promoters are given, or purchase, free trading stock prior to promotional campaigns. Oftentimes, these shares are sold into the hype of stock promotion and followers of these newsletters become the bagholders.

Certainly, The Dean could go on and on with this list and, in time, he will. For now, make sure to do your homework, establish an investing strategy and exit point, and build your own list of mistakes to avoid when trading penny stocks.