Prof. Tyler yamazaki

Part of the volatility of Penny Stocks is that a significant decrease in value
can still be followed by another big drop. Therefore, in order to cut down
your losses, it is important to set a limit on how long would you be willing
to hold on to a losing Stock. In the same way, you should know how long
you will hold on to a winning Stock. Again, even if a Stock continuously
experiences an increase in value, there is still the possibility that its price
can just drop dramatically, almost without any warning.
Look for Patterns

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The movement of the prices of Penny Stocks can somehow be random. The
thing is, randomness creates patterns. And, if it is not random, then there is
more possibility to find a pattern. If you can identify these patterns early,
then you will be one step ahead.
Observe the Trends
Do not just study a stock’s current record, but also check its past
performance. This is a good way for you to know if the Stock is really
doing well. Also, do not rely completely on the latest trends. Although the
latest trends can show you the most recent performances of a particular
Penny Stock, you must take note that trends often change. In fact, in the
Penny Stock market, you will barely see a trend that will last for too long.
Know the Latest News
If you are serious about trading Penny Stocks, then you should keep
yourself updated on the latest news. The many factors that affect the prices
of Penny Stocks are usually revealed on the news. You should know that
government interventions, economy, market behavior, inflation, among
other things, can affect the prices of Penny Stocks. Take note, however, that
although the news can give you valuable insights and information, what
matters the most is still the actual prices of Penny Stocks.
Stay Calm
Bad days do happen, and you may encounter a series of losing streaks
despite doing some good research. During such a moment, or the moment
when you first experience your first loss, stay calm. Penny Stock market
does not care about how you feel, so you must remain objective and
focused.