| Are you dreaming of the day when you can walk | | | | specific price. This is done to protect you from big |
| away from your job? Having your own business | | | | losses if the stock goes in the opposite direction than |
| trading penny stocks can be your answer. Knowing | | | | you planned. |
| how to get the right penny stock pick can be | | | | A trailing stop loss is similar but it will move as price |
| unbelievably rewarding and your key to financial | | | | moves. For example, if you were long on a penny |
| freedom. | | | | stock pick (expecting price to go up), and price |
| I spent years and thousands of dollars searching for | | | | moved up, so would your stop loss. When price |
| my business. I owned a home based franchise, real | | | | moves down, it stays where it's at. It will keep doing |
| estate, and some other small ventures. I made | | | | this until price reverses and you are stopped out. This |
| money however I never had the freedom or enough | | | | way, if price trends for a while, you can capture a lot |
| income to say goodbye to my day job. | | | | of profits. I would set the stop loss 15% from your |
| Trading changed all of that. I walked away from my | | | | buy point. |
| job. With little trading experience, I stumbled upon an | | | | 3) Penny Stock Pick Alerts. Okay, what do you buy? |
| easy way to buy and sell penny stocks. | | | | There are lots of penny stocks to chose from. Doing |
| It's not hard and it doesn't take much money to | | | | your own research is very difficult. I prefer to use a |
| start like most traditional businesses. You need to | | | | company that provides penny stock picks. You can |
| follow a few steps to make it happen. | | | | get services that send out emails or you log into their |
| 1) Discount Broker. As a short term trader, you will | | | | password protected website to get your picks. |
| be doing a lot of trades every week. You want to | | | | 4) Test Your Picks. Don't just start buying stocks |
| reduce your cost by getting a discount stock broker. | | | | from an alert service or newsletter. Remember the |
| There's no need for a full service broker. A discount | | | | practice account mentioned in point #1? This is where |
| broker's fee should be in the range of $5 to $10. | | | | you use it. Take the picks and use fake money in a |
| Check out a few like TD-Ameritrade, E*Trade, | | | | practice account for awhile to see how they do. |
| Scottrade, Tradeking. | | | | Why risk your own cash? |
| Be sure to check that the broker has a practice | | | | In conclusion, apply these 4 penny stock pick steps |
| account. This is important for a later step! | | | | and you will be on your way to making a serious |
| 2) Trailing Stop Loss. If you haven't heard about a | | | | income from home! |
| stop loss order, it's when you set a sell point at a | | | | |