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Why 2014 Might Be a Big Year For Penny Stock Trading


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Why 2014 Is Shaping As A Good Year For Penny Stock Trading

Penny Stock Trading 2014The stock market is a notoriously cyclical entity on many levels, including penny stock trading.  If history is any guide, then penny stocks may be poised to make big gains in 2014.  Typically, penny stocks have their best years towards the end of bull market runs, which is a time when money filters down to the penny stock markets as traders use profits earned trading listed stocks to purchase penny stocks.  More traders participating in the penny stock arena means more trading opportunities, as buying pressure and momentum causes active penny stocks to race higher.

With the current stock bull market poised to enter its fifth year in the spring of 2014, which is typically the latter part of a bull market run, it is likely that 2014 will be a big year for penny stock trading.  Penny stock traders should prepare themselves for numerous trading opportunities in 2014 to maximize their chances to book profits from penny stock trading opportunities that present themselves.  Now is the time for traders to set aside some money for trading penny stocks and get acclimated to the penny stock trading universe, including where to find penny stock trading tips and how to trade penny stocks, so traders are ready to take advantage of any surge in penny stock trading that materializes during 2014.

Penny Stock Ten Bagger

Ten Bagger Penny Stock Trade

Penny stocks can go through doldrums and slow times just like any stock market sector.  At times when liquidity is scarce and the broader market of listed stocks is falling, many traders focus on protecting their portfolios of listed stocks and pay little or no attention to penny stocks.  Conversely, once large profits have been booked from trading in stocks listed on major stock markets during a bull market run, traders often look to branch out and try their hand at trading penny stocks.  It is this surge of money from mainstream traders that really sets penny stocks on fire and makes the famous “ten baggers” (1,000% gainers) that penny stocks are known for all the more likely to occur.  2014 may very well be one of those years where ten bagger penny stock trading opportunities are common, as momentum builds in the penny stock trading arena.

Where To Find Penny Stock Trading Ideas For 2014

Finding Penny Stocks To TradeThere are numerous places on the Internet to find penny stock trading ideas, both short-term and long-term.  Investors Hub is the dominant website where penny stock traders discuss penny stock tips, trade information, and debate penny stock trading strategies.  Investors Hub is actually a collection of thousands of discussion forums that focus on a wide variety of aspects of the penny stock market, from general trading strategies to hot penny stock tips of the day to individual penny stock discussion boards that focus solely on one penny stock company.

There are many other sites that have penny stock discussion forums, such as Silicon Investor and Dr PennyStock Free Forums.  These sites often have free versions that allow limited access to their discussion forums and other limited usage.  If one is a serious penny stock trader or wants to learn about penny stock trading, it is a good idea to sign up at one or more of the sites that offer penny stock trading forums.  Being a member with full privileges allows one to ask traders questions, which is a good way to learn about penny stock trading, as many experienced traders are happy to offer trading advice.

There are also numerous penny stock tip websites on the Internet that can be quite useful to penny stock traders that want to keep abreast of the hot penny stocks that are either poised to move higher or are in the process of moving higher.

How To Trade Penny Stock Trading Ideas

Trading penny stocks is a bit more challenging than trading listed stocks for a number of reasons.  First, the financial information regarding penny stock companies is usually much less available than listed stocks.  Second, penny stocks tend to move quickly on buying pressure and momentum, and sometimes make quick reversals, which can catch inexperienced traders off guard.  Third, since they are so low in price, traders have to get used to the idea of buying penny stocks by the tens or hundreds of thousands or even millions at a time.

The key to trading penny stock ideas successfully is to have a trading system in place to quickly evaluate penny stock trading tips and to act decisively if a penny stock trading opportunity is identified.  Having a good exit strategy for a trade should also be part of a penny stock trading system.

Avoiding the Pitfalls When Penny Stock Trading

The best advice to avoid the pitfalls of penny stock trading is to do simulated paper penny stock trades, until one feels comfortable using real money to trade penny stocks.  A trader should immerse oneself in penny stock trading, as if they are using real money, but only keep a ledger of the trades they would make, including the price and number of shares bought and sold.  A spreadsheet is a perfect a perfect way to keep track of simulated trades, since profits and losses can be easily tracked on a spreadsheet to assess trading performance.

The key is to stay in the penny stock trading game by being smart about which penny stock trades to enter and which to avoid, and when to take profits or to cut losses.  If 2014 does turn out to be a good year for penny stock trading, then there will be ample opportunities to profit from penny stock trading.  It is better to pass on a penny stock trade than to enter a trade one is unsure about, or to cut losses if a trade is not working out to preserve penny stock trading capital, so that money is available for the next penny stock trading opportunity.

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One Response to “Why 2014 Might Be a Big Year For Penny Stock Trading”

  1. chitra says:

    Its is a good post. I accept 2014 to be a good year for penny stocks trading

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