The bottom line with trading penny stocks is it is tough! No one refutes this. To achieve success, you need a solid action plan that goes right alongside market movements. Charts are a big help, but your plan requires more than technical analysis. Then why do so many traders lose money on micro cap stocks? Here are my top 3 variables to go after when choosing penny stocks so you can avoid failure like many others.

Right when taking the first step, the prime feature to ask for in a good micro cap is a company that has a significant advantage over the competition. This translates into a business with powerful negotiations, new assets to build on or new territory to create profits in where other companies do not exist. I highly recommend looking into a business that has a deal with a more established name when trying to figure this out.

Also, be sure to take the time to find out about earnings and revenue for this micro cap stock. This means going through penny stocks to figure out what is increasing in earnings. You positively need to see growth in earnings and in particular growth that hasn’t been represented by share prices yet. The odds are, this will make the cost of each share rise soon.

And last of all, find yourself a chart reading that shows signs of movement upwards. If analyzing price on a chart is new to you, the majority of it is simple and easy such as the double bottom or ascending triangle. Both these charting shapes are commonly an indication that the price of this penny stock is going to go up and provides better odds if observed before purchase.

Overall, penny stock trading is a challenge even for those with experience. After all, if it were easy, everyone would do it! But the good news is, when using correct procedures to trade, you can make it a much simpler task. Take care to consistently look into the profitable penny stocks to watch and you can make quite a killing with penny stocks!

Sick of losing money on trades? Let me show you what penny stocks to watch to turn consistent profits in the market! I’ll share with you all the tricks and strategies you’ve been missing penny stock trading in order to at long last see some regular profits coming in off of penny stock trades.