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Penny Stock Fortunes – A Golden Rule: The Importance of Taking Your Profits

Posted on February 27, 2009 by Penny Stocks Picker

A Golden Rule: Good penny stock fortunes are made by taking profits

This article provides information they probably don’t want you to know.  I’m sure you have heard it before (take your profits), but how come you don’t?  Maybe it’s greed (not enough yet), buying into the hype (aka; drinking the Kool-Aid), hope (dreaming), letting your winners run (trying to be smart), plain old being lazy, or something else.  Whatever the reason, you are not going to make penny stock fortunes if you don’t take your money off the table. I assure you, if you don’t take your profits then someone else will. 

You probably got interested in penny stocks for a number of reasons.  One reason (if you don’t know already), is that good penny stocks can yield significant profits with very little capital within a short period of time if entered and exited correctly (well beyond what you could normally expect to receive trading on the NYSE, AMEX, and NASDAQ exchanges).  However, trading any hot penny stock tip is similar to gambling, the rewards can be high and the losses can be catastrophic. There is very little information that you can truly rely on in any of the otc penny stock markets (hence; the higher the risk, the higher the rewards).  The risk becomes even greater if your investing in penny stocks for the long haul.  The only way to consistently make money in the otc penny stock markets is to trade good penny stocks and learn to always take profits when you have them no matter what.  Good penny stocks are only good if they make you money, right?

If you have been lucky enough to ride a hot penny stock trade up 1000% thats great (Did you sell?).  If you didn’t then you probably held on thinking it’s going to the moon only to see it drop to below what you paid for it.  At that point you probably took a loss if you could even get out, and now it’s just a bag of poop.  The only way you are going to walk away with money in your pocket is by selling good penny stocks before everybody else does.

Don’t buy into the hype, just use it as a tool to identify and implement a winning trade.
Even if a particular hot penny stock is a scam, you can still profit from it when there is interest (momentum).  It’s this momentum that you need to make a profit trading good penny stocks.  Look, many other penny stock forums, news letters, ads, will sell you a fancy bill of goods as to why a particularly hot penny stock is getting ready to explode, and that you need to get in now.  They usually don’t tell you when to get out because they dont want you to.  The promoters (could be other traders, the company selling shares, whomever they may be) want you to be the one holding the empty bag when they sell out.  Why, because no stock is going anywhere unless there are buyers that hold onto their shares.  Nothing kills a run up in price more then people (traders) selling their shares into the run. 

Well, here is the truth, don’t believe anything your read and trust no one.   It’s a good idea to just assume that all good penny stocks are POS if not a total scam.  Regardless if any of the information you discover is true or not, you got to tell yourself that it’s just a bunch of nonsense.  You are not going to be used, instead you are going use them to help you identify the start of a hot penny stock run that is building momentum so that you can be ready to place and profit on a hot penny stock fortunes trade.  If you go into a penny stock trade with this philosophy then you will be mentally prepared to take your profits and end up with a hot penny stock trade.

Look, if you buy any otcbb penny stocks or micro cap stocks at for example .0003 and you can sell at .0004 in the same day (it happens all the time) then you better do it.  Hey thats a 33% profit, thats just great!  Pat yourself on the back this time and don’t look back.  So what if the otc penny stocks runs up to .0009 and you coulda shoulda woulda.  Well, you made money and you took your profits, what’s wrong with taking a little profit?  That same otc penny stock will more than likely go back to .0001 before it runs up higher (if it ever does again).  If you can’t take profits religiously then you probably should not be playing in any of the otc penny stocks.  If you won’t sell for a profit because you are just to greedy, then at least consider selling a portion of your position (i.e., a third, half….) so that you will be playing with mostly house money instead of yours (limit your risk).

Repeat the following every day you trade:  “I’m not greedy and I’m always going to take my profits”, ”I’m not a pig and I wont follow the herd into the hot penny stock butcher shop”.  “I’m always one step ahead of the crowd because it’s better to leave early then never”.  “It’s easier to make $100 ten times then it is to make $1000 from one hot penny stock”.   You get the point, make up your own phrases and trade all the otc stocks by this golden rule. 

If you need help, come back to SureFirePennyStocks.com where you can regularly find new information about penny stock trading.  You will probably need to repeat your past mistakes a number of times before you get used to this idea.  However, I hope the information in this article will help you to become a more effective penny stock trader and to ignore your inner knuckle head.

SureFirePennyStocks.com mission is to locate good penny stocks on the move so you can spend your time more effectively doing your homework and become a hot penny stock trader.