Payday Loans and Fast Cash Guide | Two Tips To Find Penny Stocks To Buy

Two Tips To Find Penny Stocks To Buy

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Learning new penny stock tips is going to keep you ahead in knowing which penny stocks to buy.  No one tip on their own will do you much good, but the more tips you learn the more you can blend into the perfect program for your investing style.  Unless you’re a robot you’ll never follow a program perfectly, so learn to adapt.  Here are two tips to add to your play book.

Variable Stop Loss

This tool is probably one of the most underutilized functions on many stock broker websites.  The variable stop loss allows you to adjust your stop loss price with the movement of the penny stock.  Many traders set their stop loss when they enter their trade which is a good thing.  However, it goes on to make 100% profit and they are loving life until the crash.  The stock plummets all the way down to their original stop loss and they exit the trade.  The moving stop loss can be set to be a fixed amount like 10 cents or a percentage like 1% below the current market price.  You just set you level and let it go.  That way as soon as the reversal happens you are out.

100% Boom

Stocks that break 100% in one day almost always hit the front page of many financial sites for the first day.  If this is a penny stock, and in particular a Canadian penny stock, it will often the first time anyone has heard of the stock and there is a flood of money.  This volume launches the stock into the atmosphere.  This penny stock tip is to pick up penny stocks at 99% increase for one day with a really tight stop loss.  If the boom doesn’t happen just get out quickly, but if it does enjoy the free ride to some silly returns.

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