Timed Trading: A Penny Stocks Trading Strategy

Penny stocks trading can be a profitable endeavor if done with discipline and a little bit of sound decision-making. In this article, you will learn of a long-term strategy to maximize your gains from day-to-day penny stock trading by using the element of timing and sound judgment. You can make modest gains on a day-to-day basis that add up over the long term.

At the start of the day, scan the headlines of the Over The Counter stock press releases, and see if any of the press releases are promising. Pick out one, two, or maybe three penny stocks whose press releases do seem promising, and monitor each stock’s pre-market activity between 9:00am-9:30am.

While monitoring the selected penny stocks pre-market activity, you can also use the time to do a quick research on the penny stocks companies. This is also the best time to quickly scan its history, both recent and not so recent.

If by 9:30 am the market makers have not brought up the prices of your selected penny stocks, then place an order for the most promising of the three initial penny stocks you have chosen. You may choose to invest in just one, or split it between those two stocks, or at most, invest in all three. It is usually best to choose just one penny stock for the day, but if you believe that another stock is about just as promising, you can allocate your investment between two different promising penny stocks.

Use sound judgment when splitting your resources. If the market makers have brought up prices of the penny stocks, it is your call as to whether you’d like to continue day trading or not these market makers could have read the press release before you did, and are expecting more demand for the penny stocks you have selected.

If by 10:30 am the press release regarding the penny stocks you have just invested in is as powerful as you thought it to be, then the prices of the penny stock would have started to go up. More people would have read the press release by now, and even more will get to read it as the day goes by. Just like you, some or preferably a lot of them would think that penny stocks you have chosen would be a good buy, and would start placing orders.

Demand increases the price of the penny stocks. By this time, you must have chosen at what price you would like to unload the penny stock that you bought earlier during the day. Do sell if the price of the penny stock has reached your desired sell price, and avoid holding out for a higher price. Keep your greed in check. The goal here is to make a profit within the day even if it is just a small one and not end with a loss.

At best, you are done trading by midday or maybe even earlier. You scanned the press releases 9:00am, monitored selected penny stocks until 9:30am, bought the most promising selected stock at 9:30am, and sold as the stock prices went up during the next few hours due to the demand created by the press release. Now you have a neat little profit. Just remember to use sound judgment, and to keep your greed in check.

Nir Dotan is a writer and promoter of
Penny Stocks
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