Make $$ Trading Penny Stocks – Never Put all of your Eggs in One Basket

Make $$ Trading Penny Stocks – Never Put all of your Eggs in One Basket

If you are new to trading penny stocks and are not starting with a whole lot of capital, chances are that you won’t be able to buy too many different penny stocks right off the bat. Even though that may be so, I still recommend to you that you never put all of your eggs in one basket. So, what exactly do I mean by this and how would I go about purchasing more than one penny stock if I don’t have a ton of money.  I will go ahead and get into this all in a bit more detail below. The information that is to follow has been taken directly out of our Ultimate Penny Stock Trading Guide.

Never Put all of your Eggs in One Basket

This is a super important tip and it is an absolute must to read through on this how to invest in penny stocks for beginners extreme guide. If you only have $100 to invest in penny stocks, I would suggest buying two different penny stocks with this (or maybe even 3, depending on how lucky you feel). If you have a $1,000 to throw at the Penny Stock world, I would suggested dropping a $100 per stock.  So $1,000 = 10 different stocks.  Even if only two of these stocks run, you could make your money back and even some gains.  All it takes is one runner to get you going in the right direction.  I have seen Penny Stocks that have run in the thousands of percent (%) in gains.  I have seen some penny stocks that ran 4000 percent over time (this my friend is called a 40 bagger – multiply your investment by 40 times).  Yeah, this is for real.

Imagine, your little $100 dollar investment, turning into $4,000 in a matter of months. Now think about this, out of the 10 stocks that you bought with your $1,000 (this is not taking into consideration your commission fees etc.), one of the 10 multiplied your initial investment (for that one stock, $100) 40 times.  Well guess what, you still have 9 more stocks that could run. And remember this, very important…  YOU DONT LOSE UNTIL YOU SELL or a stock gets de-listed from an exchange or some other not-so-common thing happens with the company.

Never Put all of your Eggs in One Basket - LearnedGold.ComSo, even if some of your stocks dip in value and you are in the red, as long as you don’t sell (remember, don’t be emotional), you are still not really losing money. In fact, you could actually just sit on your stock and wait to see if the price of it will go back up to where you bought it from. Or it could go even higher than where you bought it, and you could actually make money off of it down the road.

If you truly are serious about learning penny stock trading and like what you’ve seen thus far, please go ahead and visit our ultimate guide on How To Invest In Penny Stocks For Beginners. In this guide, you will find lots of helpful information on penny stock trading along with a ton of examples, tips and different strategies to help you become an expert micro cap trader.

Never Put all of your Eggs in One Basket

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