Penny Stock Trading Blunders

Your stock broker in penny stock trading matter a lot. Two penny stock traders could execute same order but get filled at entirely different prices depending on the broker and the method used to get the shares that were requested. What this means is that the stock broker that you choose can make a big deal in your trading. Turn $200 into $100K in just 1 month with this FREE Penny Stock Trading Report that shows how to find killer stocks. Master killer stock selection and market timing strategies with these two FREE Stock Momentum Trading Reports-The Triton Convergence and the Paralysis of Analysis. Watch this weird 30 minutes Stock Trading Nitty Gritty video.Let’s discuss some of the penny stock trading blunders that you should avoid:

1. Don’t Try To Trade After Hours:

Stock market opens from 9:30 AM EST to 4:00 PM EST. These are the official trading hours where most of the institutional investors and the big players are active. What this means is that liquidity is high during those hours. During the last decade, after hours trading and pre-market trading was introduced to extend the profit taking opportunities after the regular trading hours. However, during these after hour trading liquidity is low. So you should avoid trading during these hours.

2. Don’t Use A Market Order On An Illiquid Penny Stock

You will find many penny stocks that have the potential to give explosive gains illiquid. What this means is that these stocks are not being traded in large numbers and the potential for a volatile price action is there. When you want to trade an illiquid stock, never use a Market Order. A market order gets filled at the market price that maybe far away from what you had anticipated. Always trade an illiquid penny stock with a Limit Order .

3. Don’t use FREE Data Sources

Avoid using free data sources like Yahoo Finance or MSN Money. They may be great to give you the stock quote at a fly but when it comes to serious trading always use the data feed provided by your broker .

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