Advanced Penny Stock Trading Strategies – Penny Stock Alerts Blog Forum

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  SteelThunder said,

  When a stock is on a run and really hot, do you think it is better to sell it after 1 or 2 days and just cash in the gains? Or is it better to let it ride?

  I find a lot of the time I sell too early and miss a lot of profits. What do ya’ll do?

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  Allen Z Z said,

  Personally I like to use a trailing stop of 20% That way I’m guaranteed to keep at least 80% of my winnings. It is enough room for the stock to wiggle around a bit, and hopefully ride it for a big run. But if it starts to go down, I’ll get to sell and keep the big majority of the gain.

  Sometimes I miss big runs when the stock gets volatile and moves up and down a lot. But I think it’s worth it because this way I usually make good money, and never take big losses. I think it is always best to take profits when you’re in the position. If you get too greedy all your trades will turn into losses.

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  Zabeus said,

  But you can’t do that with penny stocks..
  (At least, not OTC)

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  Allen Z Z said,

  Sometimes you can put an automatic one on it, I think the stock has to be over 10 cents.

  If not, you can just use a mental stop and just watch the stock and sell all or part of your position when it goes down 20% from however high it goes.

  That way if it goes up 80%, I’ll get at least a 60% gain if it goes back down. Some people like to use looser stops or tighter stops than 20% but that’s what I like.

  If the stock heads straight down from the open I never let it go all 20% though, because it doesn’t usually come back.

  If it goes up, then I enjoy the ride as high as it goes and then sell when it’s down 20% off the high.

  There are lots of different strategies, thats just my 2 cents. Ive made a lot of money doing it that way tho.

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