GUAPO'S "HOW TO TRADE THE PENNIES", PART 3

Third installment of wisdom and wit from my friend Guapo:

3. Advice Re The Penny Stock Market

First, never play the penny markets with money you can’t afford to lose, funds you’re saving for your kid’s college fund, or cash needed for the house payment next month for example. Be prepared to lose every cent you put into the penny market.

You’d be surprised how many people risk money they can’t afford to lose, figuring they can beat the market in a few weeks or months and put the money back they took out of the college fund, etc.

Second, if you work every day and have the kind of job where you don’t have time to devote to your stock market speculations, you should proceed extremely carefully and consider developing a method that limits your risks. Setting limits sales when you can’t watch your stocks all the time is a technique you should consider. Limit sales will protect you from catastrophic losses. There’s nothing worse to return home from work in the afternoon and discover your stock CRAP dropped 70% while you were at work, and you’re down $2500, for example.

Third, if you’re not having a good time playing the pennies, don’t get a kick or adrenaline rush from it, or if it seems more like a headache than anything else, get out.