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Scale In With Penny Stocks

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Scale In With Penny Stocks Powered By Docstoc
					Presented by Daniel Toriola
Choosing the right Stock is a very complicated process and investors have different approaches. However, it is wise to follow general steps to minimize the risk of the investments. Click here to know more

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Scale In With Penny Stocks By Mr. Peter Leeds

When trading penny stocks, most less experienced investors buy and sell all at once. If they've got $1,500 to invest, they put the full $1,500 all into a single investment, and usually all at once in a single trade. This isn't a wise trading strategy, and anyone who knows my story (http://pennystocks.com/about-peter-leeds.htm ) remembers I learned this lesson the hard way. When trading penny stocks, you should always Scale In, and when selling penny stocks, you should always Scale Out. Let’s say you have $6,000 and want to invest it into ABC Company. Instead of putting $6,000 into the company immediately, you only invest $2,000 at first. If that penny stock starts going higher, the two thousand dollars is in a profit position. If it starts going lower, at least you’ve saved the loss that the other $4,000 would have taken. At that point, if you still believe in the investment, you could Average Down by buying more shares with the $4,000 that is still on the sidelines. This strategy has even been employed in turn of the century military tactics. A good general always holds back some of his troops, and can then respond based on the results of the first attack. By Scaling In, you stay dynamic and keep your options open. It also buys you time. Time to think about the decision you made, and maybe rethink what you are doing with the rest of the money. It also allows you to watch as other events occur, while still having the option open to buy more shares. For example, you might Scale In with a buy in February and come back with a secondary purchase in July, and a third in September. In between each of these purchases, you have time to assess the situation and see new events that occur with the company, with the competitors, and with the overall market and industry. You will simply be more informed. It also keeps your money on the sidelines so that you're open to other ideas. For example, say you were going to put $6,000 in ABC company, but instead you decided to scale in, and you held $4,000 back. Then perhaps another opportunity comes to light, or maybe your kid needs braces so you use the money for the orthodontist. The downside to Scaling In is that your broker commissions will be higher, but that’s not really a big deal since most stock brokers charge such low commissions.
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Presented by Daniel Toriola

When you're selling penny stocks, you may want to Scale Out. It's not usually a good idea to dump all your shares onto the market all at once, unless you only have a very small position in the company. With thinly traded penny stocks, unloading even 25,000 shares could push the stock price down while you are selling. A lot of people use the very common, and somewhat effective strategy, of selling half of a position if their investment doubles. This gives you back your original investment, and then the idea is to let the other half ride. I find it more effective to exit and enter positions in three, four, or even eight different trades, as long as you are doing it with enough money each purchase to make it worthwhile. I usually space these purchases out over months, and sometimes years. I bought Absolute Software at 80 cents. It scared me by immediately going down to 40 cents, but Leeds Analysis provided clarity on this stock's direction, so I didn't worry. Soon Absolute reversed, and within the next two years approached $8.00 per share. I sold three different chunks around seven and eight dollars, over a couple of months. Rather than dumping all the shares at once, I proceeded cautiously, and took my profits a piece at a time. It’s also a good idea to Scale In or Scale Out surrounding an event. For example, a company is going to release their financial results, and you expect the numbers to be strong. You might want to buy shares with part of your money before the release of the financials. Then you keep part on the sidelines, until you see the actual results. At that point you can decide if you want to put the rest of the money in, or perhaps now you've changed your mind. Peter Leeds is the Penny Stocks Professional. Along with his team at http://www.pennystocks.com they publish penny stock picks, buy and sell prices, daily updates, and special feature reports.

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Penny Stocks Investments - How Do You Choose The Best Ones By Francis Mailhot

In order to earn high profit from penny stocks, you have to ensure that you choose the company that has a potential to earn you high profit in the future. Most investors, including the new ones, prefer to invest in penny stocks because it is possible for them to earn good profit with these stocks. However, you should keep in mind that not all penny stocks can yield good profit. You may not know this but there are many stocks in the market that people think are good stocks but in reality, they do not have any liquidity or at least enough for an investor to be able to get out of a position quickly. www.HyperGrowthStock.com is a FREE newsletter that focus on Penny Stocks that are highly liquid and ready to explode, so trading in them in and out is easy. Now the question that you may have on your mind is: How will you know which penny stocks to buy when there are supposedly so many stocks available in the market? If you want, you can check out a penny stocks website like www.HyperGrowthStock.com first before you set off and make your purchase. Believe it or not, there are many resources online that can help you choose the best penny stocks in the market. Many of these websites will require you to become their member in order to find information about the penny stocks. Now the good news is that the fee that you will have to pay to become a member is not a lot. What's more, the information that you will be able to obtain from a penny stock website will be valuable. So it will be worth your money! You should be very careful when you are looking for information about penny stocks. It is true that you will find plenty of information online but this does not necessarily mean that all the information that you find on the internet is true. Putting your money in the penny stocks is not difficult when you know which stocks you should invest in. You just need to be careful. Also it is recommended to use newsletter services so that you can learn as you trade, there are many types of newsletters and to read one that has Fundamental information and also Technical Analysis is one method that help learn very fast. www.HyperGrowthStock.com is such a service and you should go register, it's a free service loaded with valuable information and many alerts every week.

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Related eBooks: Penny Stocks Investments - How Do You Choose The Best Ones What Are Penny Stocks, And Why Should You Care? A Beginner's Guide to Trading Penny Stocks Could Penny Stocks be Your Ticket to Stock Market Success? Why Do Micro Cap Stocks Carry A Bad Reputation? Get more Free PDF eBooks at FreePDFeBooks.com Related Products: Money Saving ideas Hints for lovers Say A Few Words 30-Day Low Carb Diet 'Ketosis Plan' Profit Pulling Reports

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