Rochester, NY 7/6/2009 10:28:32 PM
News / Business

Small Cap Stock Newsletter Teaches Readers in Trading Penny Stocks

Small Cap Stock Newsletter Teaches Readers in Trading Penny Stocks

Successful traders in the small cap market understand the difference between what makes penny stocks rise in share value and what makes trading larger public companies share move. Some rules that may help investors become successful penny stock traders are common when investing in the penny stock market. At WhisperfromWallStreet, we aim to educate our subscribers as to what these factors are in the small can micro cap markets and how to use such information to become more successful traders.

 

There are certain basic rules that we follow at WhisperFromWallStreet and we share these rules with our subscribers; the most important of which is learning to limit risk. A section of our “Trading Rules” edition titled “Limit Your Risk” expresses the importance of this rule. A large part of becoming a successful penny stock trader is limiting your losses.

 

Often investors believe that a company’s stock that they’ve invested in will turn around, turning losses into gains. Holding onto such investments can be costly, turning a 10% loss into a much greater loss. “Successful traders know how to limit losses while unsuccessful ones do not.” It is important to know when to cut your losses and move on to another investment.

 

“Don’t chase stocks,” we recently advised in our newsletter. We stress this as one of our “Trading Rules”. It is important to understand that there will be another good investment “right around the corner” so if you miss your entry point it may be a good idea to wait for the next investment opportunity.

 

We also teach our readers the importance of “Selling on the Way Up”. This is determined beforehand when you enter a new trade. Decide what your exit point will be when the shares rise in value; and stick to it. “There is nothing wrong with taking 10%, 15%, or 20% profits on trades.” It is sometimes more important to learn to make profitable trades then it is to try to buy at “every low” and sell at “every high”.

 

At WhisperFromWallStreet we teach our subscribers the difference of using Limit Orders and Market Orders as well as the appropriate times for both. “When getting out of a stock where the momentum has changed and it's headed lower use market order sells,” we wrote in a recent edition of our penny stock newsletter, “or put the limit well below the current market.” We went on to explain, “You want every advantage to get out as soon as you can.”

 

If you’re looking for quality information about the penny stock market or to learn more about penny stocks, the lessons offered by our WhisperfromWallStreet penny stock newsletter may be of use to you. To learn more about the WhisperfromWallStreet newsletter please visit our website at WhisperfromWallStreet.com.

 

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