Follow these tips to help you earn money with penny stocks.

  1. Investigate

Look into each company that you are considering. If a company isn’t very big, there may not be a lot of information available. Find out what you can, and in particular, glance through the newest accounts.

  1. Don’t Put Too Much Stock In Tip Sheets

There are some good tipsters and other that are not to be trusted. It is hard to tell the difference, so be discerning when you look at tip sheets for the best penny stocks.

  1. Look For Potential

Ultimately, you want to find a company that has a decent trading history and that has made money over time. If you can’t find one that you like, seek out a company that has potential.

  1. Put Your Feelings Aside

If you allow emotion to creep in when you are dealing with a stock, you are much more likely to lose money. Think logically instead.

  1. Stop-Loss Is The Way To Go

No one wants to lose money. However, if you find yourself in a difficult position with a trade, do your best to stop the “bleeding.” It’s harder when there are wide spreads and a lot of volatility.

  1. Go With High Volume Stocks

You will have trouble closing out positions if you attempt to trade small stocks that don’t have a lot of volume.

  1. Keep It Manageable

There are a lot of penny shares out there, but not all of them are right for you. Find the ones that you like and go with those rather than trying to spread yourself too thin.

  1. Sell When Necessary

It is difficult to know when to unload a stock. However, if you are making money, there’s never really a wrong time. Go with your gut.

  1. Stay Away From Over-Exposure

Penny shares should only be a small portion of your portfolio. Over-exposure means that there is a good chance that you will lose money.

  1. Don’t Take Big Chances

There is a lot of risk involved here (of course, you can also make a lot of money). However, don’t put in money that you don’t really have.