These seven stock tips from online casino games will help you find winners, manage emotions and keep perspective during tumultuous times.
- Cut Losses Early
When shares start going the wrong way, take the pain, and rip it off in one motion like a Band-Aid. Of course, every investment will wobble a tiny bit in value, but if the stock falls through your pre-determined loss limit, it’s possibly time to take the hit and move on. Often, the shares will just keep sinking, making the early exciters look pretty smart. This also opens up the opportunity to buy back in at much lower levels in the near future.
- Let Gains Run
Lots of stocks start moving in the right direction, and they just keep climbing. Typically the shares reach well beyond what most investors might expect. Some of America’s greatest companies started as penny stocks, and now trade for $10, $20, or even $50 per share. If the business continues to grow, savvy investors hold on for the ride. Meanwhile, many others sell far too soon, gloating about their 100% gain, then crying as the shapes reach for the stars.
- Don’t Average Down
Most investors try to make up for their mistakes by putting more cash into a falling stock. For example, if the shares drop 30% or 50% or 88% in value after their original purchase, they buy even more of the stock. This makes their average price per share lower, courtesy of best mobile casinos australia.
- Average Up
In contrast to averaging down, averaging up is often a more effective strategy. If an investor makes a purchase, and the shares start climbing, they have been proven right about their trade. The shares are going higher, and usually an uptrend will be sustained if the underlying company is doing well. Putting more funds into a winning investment often pays off very well.
- Paper Trade
So many people want to jump into penny stocks but aren’t sure how to begin. They are also cautious of the risks or don’t understand the process of buying and selling. Paper trading is the answer. Simply keep track of stocks you would have bought, but do this with imaginary money. Paper trading will make all the difference in your trading results and stock market understanding. No risk, and no money required!
- The Single Biggest Investor Risk
We dedicated an entire article to confirmation bias, which absolutely is the single biggest risk to any and all investors. Learn about it before you trade another share of stock!
- Don’t Trust Free
Free stock picks, especially in the world of penny stocks, are absolutely dangerous! Hidden motivations meet greed when these dishonest promoters try to trick masses of people into buying shares of their latest worthless company. That’s why their communications are always free, whether they are sowing seeds through the rumor mill, sending unsolicited faxes, or dumping dishonesty on you through free online newsletters.