How To Trade The Best Penny Stocks To Buy

If I had a penny for every time someone asked me "so what are the best penny stocks to buy?", I'd have a heck of a lot of pennies!

Quite often they follow this with those familiar 'war stories'; "I could have made a killing if I bought this at 0.05." Or, "man I knew I should have bought/sold!" But you know it's never their fault they aren't making money, it's the analysts fault because his pick was wrong, or the system they were following doesn't work anymore.

Hogwash!

The reason why these guys (and gals) are not making money is because they don't know how to trade. Even if the best penny stocks to buy hit them in the face, they still wouldn't know because they simply do not know how to trade.

Knowing the best penny stocks to buy without knowing how to trade it is like driving a Ferrari without knowing how to drive it. And that my friend is a dangerous game.

Don't fret if this sounds familiar. You just need to know how to play the game; you need to know the rules. You need to know the rules that will dramatically improve your trading, and when you do find the best penny stocks to buy, you'll know how to play them, and how to profit from them:

"Plan Your Trade And Trade Your Plan"

You need to plan your entry, exit, and the capital risk, before you make the trade. Even if it's one of the best penny stocks to buy since penny stocks were invented, it won't be unless you have a plan to make money with it. Trading without a plan is like an NFL team trying to win a football game without a game plan.

Preserve Your Capital

Making profits is important, but it is even more important to preserve your capital when trading. Risk no more than 5% in each trade and you'll survive long enough to keep trading. For overnight trades, if you're having trouble going to sleep, that's a surefire indication that you are risking more than you are comfortable with. Close the position so you can get some sleep.

Befriend The Trend

Never go against the trend. If the market is bullish, go long. If you the market is bearish, go short. Why swim against the tide, when it is a lot easier (and profitable) going with the flow?!

Trade With No Emotions

Your emotions of greed and fear can have a huge impact on your trading performance. Let them get the better of you and you might not be trading much longer; follow your rules and keep your emotions out of the trades and you might still be trading tomorrow.

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Vincent Hartell can help you become an accomplished trader. Visit his site to get the rest of the rules for effectively trading the best penny stocks and recommendations on the best penny stocks to buy.

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