When is the Best Time To Sell Penny Dreadfuls.
The problem that most traders have when it comes to stocks is not knowing exactly when the right time to sell.
These type of sttocks can rise very quickly but they can also fall just as quickly as well. One of the main reasons that most traders hang onto a stock for too long is because they have failed to differentiate their emotions from their trading actions.
As I have said before all of your penny dreadfuls buying and selling should be based on sound research using a basic set criteria. The result of your research will ultimately affect your decisions on whether, or not, to buy.
For knowing exactly when is the right time to sell your penny stocks is vital, for getting it wrong can be fatal to your trading capital. It seems that too many traders seem to put all their efforts into research into knowing what penny stocks to buy and when to buy them. But not enough time and effort is put into knowing exactly when is the right time to sell them.
For some reason or other traders seem to forget about researching properly to sell stocks. All to often they are letting their emotions take charge and therefore they are always selling at the wrong time.
Invariably the traders who are selling at the “wrong time” fall into two basic categories. These are called for want of a better name :-
The Runners and The Sitters.
We shall deal with the makeup of a “Runner” first.
The poor Runners usually take their profit far too early. They see their Stock rise a little and then quickly sell them because they didn’t want to “risk too much”. Invariably as soon as they have just sold the stock, they see it begin to start rise up even further and then they end up asking themselves why they sold so early.
Now the Sitters are to a great extent very emotionally involved with their stocks.The reason for this is because they are really gamblers at heart and therefore they cannot bear the thought of letting go of a losing position.
Their reasoning is that because “it should be bouncing back soon any day now”. When they do eventually sell their Stocks there is virtually nothing left of value. Basically The Sitters seem like to sit on a losing position. They like buying but dislike selling.
So where do you fit in? Are you a Runner or a Sitter? Hopefully you are neither. Of course you want to be a profitable,successful trader don’t you?.So what makes a profitable trader?
A successful trader has learnt,usually by bitter experience to separate their emotions from their investment thinking. They not only execute their proper research when buying their stocks but also when selling as well. They not only know exactly when to buy, but they are not afraid of selling either when the right time comes along..
There is a great deal of profit to be made from trading in Penny Stocks. But is essential that you know not only what to buy, but also how long to keep it and when is the best time to sell. The answer to ultimate success is having good information and proper research done before you do either.
One last tip if you can find out why your stocks are rising in price, this will then put you in a much better position to know exactly when it is the right time to sell.
I wish you profitable trading.

