Since I started buying and selling penny stocks I have had some spectacular gains and some equally spectacular losses. Today I am going through the best penny stocks that I have owned as well as the reasons for why I bought them. Interestingly enough, over the last few weeks it has been one of my top read pages for both searches and referrals, therefore I can only assume that people want to know more about penny stocks and how to pick them.

One thing I will note before I get into this is that I live in Australia and I buy and sell stocks on the ASX Australian Stock Exchange. Apparently in other countries like the US, many penny stocks are not listed on a central exchange and are much more difficult to trade due to decreased liquidity. For me personally, I would only get into penny stocks if they were available on an exchange where you can get in and out at a minutes notice.

That is about it. You just need to be able to see the patterns on the chart and the rest will follow. Learning when to sell is far more difficult than learning when to buy.

If I like the company and think it is fundamentally going places, then I like to look for long term support and resistance lines to help me determine good entry and exit points. If a stock bounces off resistance then there is a fair chance that I will exit and look for a better entry point. If it breaks through resistance then I hold until the next resistance test or if it falls through support. Extract resources was kind to me, it was one of the few stocks that everyone was buying even when the GFC was in full swing.

I traded it twice, making some serious profits along the way. What I looked for was big increases in share price that broke through previous resistance or trend lines. This way I maximize my gains if the price continues to go up, but limit my losses if it continues down. Zinifex was another ripper which turned from a penny dreadful into a ASX maybe even ASX for a while company.

The time was pre-GFC and almost every resource stock was going up like a rocket. Often this stock would creep up right before a market sensitive announcement. As you can see, it had some very wild trading ranges and was good for big run ups if you could get in at the right point.

This stock got hammered during the GFC, but it presented some great opportunities for buyers who had the right risk appetite.

I remember buying into this one and thinking it was going to shoot to the sky in the coming months. It did as expected, but I was out WAY too early to enjoy most of the gains.

I expect it will likely bounce off 30 cents, or if that fails, 20 cents. Anyway, it is certainly one to watch over the coming weeks. First off, I bought on a false breakout, rather than waiting for the trend to be confirmed.

Second, I got caught up in the story of the company and held on for a long time years when I normally just go with what the charts tell me. It could have been worse… If I had held on until today the price is sitting around 20cents and I would have been back where I started. This is what REALLY not to do!

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This was the first penny stock I ever got into and I thought Chicago title earnest money was a king among men and that trading the stock market was about the easiest thing you could do. It was just so simple, you buy on big volume days where the price gets pumped up, and sell when the stock comes back down.

Unfortunately for me, I bought into the hype. Late last year I bought some shares in a little bio tech company called Neuren. I bought it entirely based on technical chart analysis as it had just broken up on high volume and looked set for a run. Anyway, I got caught up in the story of forex reversal indicator v3 company and what it is doing and have ended up holding it far longer than I planned to.

Even the long term technicals of this company can you make lancashire hotpot with beef starting to look amazing, with some very old resistance points getting broken.

I expect that in the next year we will see cents on this stock and so Best pivot point indicator mt4 plan on keeping aboutshares as long term investments, and trading the rest as the market moves. In the very short term a gun savr custom oil gunstock finish to 6.

There is some very decent gains to be made, but it does move very quickly and so you need to be decisive and fast thinking if you are going to make money. You plan looks like much of what I do. I find my entry point and set up my sell off and buy back prices. I pretty much repeat the process and make money. Some stocks are easier to see somewhat of a pattern.

Especially when emotions run high and people buy in after they missed a run. Thomas Your Daily Finance recently posted.

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June Stats, Updates, Goals, and Future Plans. I pretty much look for big moves and go with the trend. Thanks for the thorough info here, Glen! We are in the process of educating ourselves on investing and this is a how to make money leatherworking 5.4 help for us. Unfortunately for me the stock is now as close to zero as physically possible.

Holly ClubThrifty recently posted.

You need to do your own research, listening to other people is fine, but ultimately you need to be happy with what the company is doing. Thanks for the breakouts Glen.

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Penny stocks have intrigued me for some time and this really helps me out. I might have to just give it a try. Grayson Debt Roundup recently posted. Are You Hardwired To Make Bad Investment Decisions? Like you said, there are a lot of differences between the two countries. Secretos de forex pdf buying penny stocks in australia on them is regularly in my top viewed pages, so people are definitely looking for info on them.

John S Frugal Rules recently posted. In does smithing make money runescape Blink of an Eye. I was really surprised just how much traffic it generated so I figured I would give people what they want. Jake Common Cents Wealth recently buying penny stocks in australia.

How Much Do Fuel Efficient Cars Really Save You? I admit I would have no idea how to go about investing in them if I did want to. Thanks for making me think today.

This looks like fun, I could get into this. July 1 — 7. I hope I can try trading penny stock in the near future. I will study the in and out of trading stock, so that I can it in my portfolio. Learning the charts is your best friend. Once you know how to read them you will find it a lot easier to trade. How much leverage are you using for penny stocks? I prefer to trade forex because the market moves with international, not some information a few people will get before you do.

There is definitely some money to be made in penny stocks. However, it depends on your appetite for risk. If you only put a small amount of your portfolio into these higher risk plays then you will be safe. Put your whole portfolio in…you may be asking for trouble! I had a pretty bad experience in the past playing a couple of penny stocks and have sworn them off entirely. I know that some people are lucky enough to make some real money with them but I was not one of those people.

Good luck to you and on your future investments. Any of the brokers will allow you to trade penny stocks. I just use the tools my bank provides.

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I am not a financial expert. Before making an investment decision based on this information you should consider, with or without the assistance of a qualified adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. As a result, readers are encouraged to seek professional advice before making any major decisions. Register Lost your password?

Log in Lost your password? About Me Shopping A-Z of Saving Money Monster Piggy Bank Shirt Buy Piggy Banks Debt Progress Links PF Articles Edition Site Details Contact Me Privacy Policy Disclaimer. Glen July 8, Investing 26 Comments. What I look for in a Penny Stock When I enter a penny stock I look for a few main things. A big price increase that breaks the recent high within the last 6months to a year The price increase should preferably be on larger than normal volume 2.

When to Sell Learning when to sell is far more difficult than learning when to buy. EXT — Extract Resources Extract resources was kind to me, it was one of the few stocks that everyone was buying even when the GFC was in full swing. Related Posts Trading Successfully in Spite of the Current Market Trading the Financial Markets Hoes Does Leverage Work In FOREX?

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