When To Sell Penny Stocks

When To Sell Penny Stocks
Penny Stocks can be a​ very effective way to​ provide you with a​ secondary income .​
They can be used to​ create passive income because they do not require you to​ be constantly watching over them .​
The problem that most people have when it​ comes to​ stocks is​ - not knowing the​ right time to​ sell .​
Penny Stocks can rise very quickly but they can also fall quickly too .​
The reason that most investors hold onto a​ stock is​ because the​ fail to​ separate their emotions from their actions .​
All of​ your penny stocks buying and selling should,​ of​ course,​ be based on​ sound research both of​ the​ market and the​ companies’ recent history .​
How the​ company is​ doing in​ terms of​ profitability,​ whether they are just about to,​ or​ have just announced profits,​ losses or​ new patents,​ discoveries and products,​ can all affect your decision on​ whether,​ or​ not,​ to​ buy.
Knowing the​ right time to​ sell your penny stocks however can sometimes seem,​ as​ much an​ art as​ a​ science,​ although getting it​ wrong can be fatal .​
Many people seem to​ put all their research efforts into knowing what penny stocks to​ buy and when to​ buy them .​
Investors seem to​ forget about researching to​ sell stocks .​
Instead,​ they let their emotions take control and sell at​ the​ wrong time .​
Investors selling at​ the​ wrong time fall into two categories .​
These categories are,​ the​ Runners and the​ Sitters.
The Runners like to​ take profit way too early .​
They see their Penny Stocks rise a​ little and sell because they don’t want to​ risk too much .​
I’ve seen it​ time and time again; these people set out to​ earn a​ 25% Return on​ Investment and end up taking profit at​ 1% .​
Someone who takes profit twice at​ 25% earns a​ lot more than someone who takes profit twice at​ 1% .​
Usually,​ as​ soon as​ they sell a​ penny stock,​ it​ will rise even further and they’ll be wondering why they sold so early .​
The Sitters are the​ heavily emotionally involved in​ their penny stocks .​
They are gamblers at​ heart and just do not want to​ let go of​ a​ losing position because it​ could bounce back any day now .​
When they do let go of​ their Penny Stocks - there is​ virtually nothing left .​
The sitters like to​ sit on​ a​ losing position .​
They like buying but dislike selling.
Do you want to​ be a​ Runner or​ a​ Sitter? Well,​ I​ hope you are neither .​
You want to​ be a​ winner .​
a​ winner will separate their emotions from their investment thinking and will also research when buying and also when selling .​
They will buy and they are not afraid of​ selling.
There is​ great deal of​ profit to​ be made from trading in​ Penny Stocks .​
But you have to​ know not only what to​ buy but also how long to​ keep it​ and when the​ best time to​ sell .​
The answer,​ as​ with most things in​ the​ world of​ finance,​ is​ good information and research .​
But that doesn’t end when you buy .​
Find out why your penny stocks are rising and this will put you in​ a​ much better position to​ know when to​ sell.

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