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| When My Stock Collapses
From time to time, we emphasize the importance of understanding risk and risk management in order to record total portfolio gains. This is very important in the summertime, as it is not unusual for penny stocks to flounder on low volume before picking up again in the fall.
Regardless of seasonality, we all know that a stock we buy will go down at some point. Sometimes it can decline incrementally. But more often than not, when a penny stock declines, it can be a pretty big move down.
There are a few schools of thought as to what to do in this situation, depending upon the circumstances. After all, each scenario is different. However, by following these strategies, meaningful stock losses can at least be minimized, if not avoided altogether.
Let's assume you just bought "Stock A." One day, with no news on the stock or any material news on stocks in the industry, Stock A is inexplicably down 12% on lighter-than-average volume. What do you do? Your options are pretty simple. You can either:
a) Stand pat.
b) Buy more.
c) Sell a portion.
d) Sell it all.
To read more click here >> or visit http://www.pennystockjunction.com
Why Do People Invest in Penny Stocks?
Many investors have an aversion to penny stocks. Frankly, the term itself has a negative connotation that evokes derision and scorn to those daring enough to even mention the term.
I understand why they feel the way they do. There is a lot of misinformation on the subject and the segment has been fraught with risk, manipulation and scandal for decades. Still, to those investors who claim they will "never buy a penny stock," I say, you don't know what you're missing.
I was first introduced to penny stocks in 1989 when I entered the investment industry. I've been hooked ever since. There is something intoxicating about unearthing and participating in the huge growth potential of a company developing the next treatment for cancer. Or a new technology that revolutionizes how we live. Or just a cool concept that is about to take the country by storm.
The naysayers tell you that the world of penny stocks is all about fraud, volatility and manipulation. No one can really make money by investing in them. Only those promoting the stocks make money.
To read more click here >> or visit http://www.pennystockjunction.com
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Keep a civil tongue.