The Rules of Penny Stock Trading in 2010
By Skip Charles

When looking at the rules of penny stock trading for 2010 or any other year there are a couple very basic rules that can make investing in the penny stock markets a ton of fun as well as financially rewarding.
Different types of investors will certainly have a different outlook on building their investment portfolio but the number one of the rules of penny stock trading is that we are generally not looking for long term investments.
This kind of flies in the face of conventional thinking when it comes to stock investing and this is because micro-caps are not like conventional trading.
This means:

1. Penny investments are generally short term investments that generate income. These types of stocks are the playground of day traders and adds tremendously to the already volatile nature of the penny markets.
2. Always, always, always make sure have have sell orders in to ensure maximum profits as well as cut loses in the event of a big down turn.
3. Only invest what you can afford to lose. As stated, these types of investments are in young companies that can and do fail.
4. Understanding that these are companies that can and do fail it is important to be very in tune with the markets as well as the sectors you are interested in investing your hard earned dollars.
5. Paying a broker for advice as well as buying and selling is not necessary in these types of small investment markets. Having a way to receive timely information about the markets is advisable as long as it is from someone with a proven track record. Any online account can be used to buy penny stocks.

If you are a new investor in the markets and looking to make a little money as well as getting your feet wet investing you can use the above rules of penny stock trading as basic guidelines.
A really great source and a awesome success story in the penny stock markets is James Connelly who now uses his experiences and techniques to teach people have to turn $1000 into $1,000,000 using the penny stock or micro-cap market.

Check out a really cool video of some of his work as well as get a ton more information about a very good system for investing in in micro-cap by visiting:
http://www.TopPennyStockTips.com

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