There is one thing you will absolutely have to learn in order to make a fortune with penny stocks. There is something required of you, and without it I promise you will not be successful.
You must learn to listen your brain, not your emotions!
Let me give you an example:
You decide to buy a particular stock, and within 24 hours, you're up 50%. Great!
Now comes the hard part. You're up 50% and considering selling, but your emotions are telling you "Wait, what if it goes up to 100% tomorrow? If I sell out now, I'll miss out on even more profits!"
You have 2 options.
Option #1: Listen to your emotions, hold on to it, and pray it continues to go up.
Option #2: Listen to your brain, call it a win, and sell for a 50% profit.
Which option sounds the best to you? You would not believe how many people pick option #1, and end up losing everything.
I've seen it a thousand times, even from my current members.
Example:
I recommend a stock through my daily alert email, and it goes up by 50% within a few days. Then I make it clear that this is a great win for us and it's time to move on, and what happens?
I get a thousand emails all asking the same thing. "Shouldn't we stay with it to see how far it goes? What if it goes up even more? I'd hate to sell it now, and miss out on even more profits!"
Ugg...
As a penny stock investor, you have to know when to walk away with a profit and be happy with a nice win. This is the biggest problem I see with people trying to make money trading penny stocks.
You'd be amazed at the number of emails I get saying "I sold the stock you recommended at 60% profits, but I noticed it went all the way up to 85% just a few hours later! If only I would have waited!"
Can you believe this mentality? Complaining about a 60% profit? It's crazy!
I've learned to just laugh at these emails. Look, there's always a chance that you could sell out a little earlier than what might be considered 'ideal', but the bottom line is we're going for substantial profits, not substantial losses!
I guarantee that it's much easier for penny stocks to go down after a huge rally, than it is for them to continue climbing up.At
PennyStockProphet.com we invest with our brains,not with our emotions. Sometimes we'll have stock shoot up 50 - 100%, and other times a 15% or 20% gain is all the stock is good for.
You have to learn when to walk away.There's nothing wrong with making a nice profit, and leaving a stock early.
The sooner you learn this, the more successful you will be with penny stocks. If you're interested in joining our weekly alert service, and you think that you can use your brain rather than your emotions, you can sign up today by visiting:
www.PennyStockProphet.comThis is a guest post by James Connelly from
Penny Stock Prophet.
