Friday, March 23, 2012

Penny Stocks Invest in the Markets Style | Invest in the Markets

Have you ever wondered how to make money investing in the stock exchange?or if it is even possible? Many personal investors have doubts? and rightfully so. After all, a variety of studies have demonstrated that most individual, and many professional, investors lose money each year. Certainly, even amongst the massive mutual fund markets, few find their way into the 1st quartile and stay there year after year. So to be a little timid is only natural? and perhaps even healthy. But that doesn?t mean it is impossible or even difficult? but it may require some humility on your part.

Penny Stocks

I never walk past a penny. If I see one lying on the ground, I bend down and pick it up? without even a hint of embarrassment. What good is it to say, ?Hey, I found a penny today? if you don?t pick it up and put it in your pocket?

I talk to lots of people who say things like, ?Wow, I?ve made 15% on XYZ stock.? But what they mean is, ?XYZ stock is up 15% higher than my purchase price.? Those are two drastically different statements? just like saying you found a penny is drastically different than picking that penny up and putting it in your pocket. Unfortunately, when I follow up with many of those same investors, they usually say something like, ?Oh, yah? it dipped and I didn?t actually cash it out.?

It?s not a Profit until you put it in your Pocket!
We have a saying around Invest in the Markets? ?It?s not a profit until you put it in your pocket!? Wise investors learn to take their profits and put them in their pockets. Simply watching stocks you?ve purchased go up in value? and then drop back down to your purchase point is pointless? like finding a penny and not picking it up and putting it in your pocket. Worse yet are those that watch their stocks go up in value and then drop below their purchase point. That?s more like finding a penny, taking a penny from your own pocket, and throwing it down beside the one you just found. Ludicrous isn?t it!

Quite simply, you?ll never get ahead if you don?t learn to pick up the profits? even the little ones? and put them in your pockets.

Penny Profits

Two weeks ago, when the indices dropped approximately 3% in the first two days, some of our stop loss orders triggered? and we took some profits and put them in our pockets.?While the markets dropped a little, some stocks were taking some huge dips in value. Take, for example, Agrium? a stock purchased way back on December 21, 2011? in the first two trading days this week, dropped approximately 5.5%. Having already sold 1/2 of our position several weeks ago at a profit, our 2nd stop loss order triggered and we put a total profit of 15.5% in our pockets.

But some people are never happy with a penny! They always want more? but how much more? If you ask most people how much more money they need, most aren?t greedy enough to say a million dollars. No, they boil it down to a deferential ?just a little bit more? kinda? statement. If only we had just a little bit more, then we?d be happy.

Let me ask you a question?

At what point would you stoop down at the front of the fast food line with everyone watching to pick up the discarded money?

I?m always surprised how many people will walk right past, or step right on, a penny. Would you pick up a nickel? How about a dime or a quarter? I rarely see anyone step past a quarter? and certainly not a dollar or more!

Friends, learn to pick up the pennies? they add up too. Taking small profits and putting them in your pocket add up to big gains over time.

With your stock positions, you can always buy back in if you wish? nothing says we can?t place a purchase order for Agrium again. But had Agrium continued to drop another 5% all our patience, discipline, and wise decisions would be worth less than if we learn to take profits and put them in our pockets.

Recent Stock Profits

Recently, we experienced some true profits when we sold several of our Weekend Investor positions. These are the ones that are highlighted each week in the Weekly Investor Newsletter? you can check it out with a free 15 Day Subscription. Let?s take a look at some of them:

  • Agrium ? 15.5% profit (9 weeks)
  • Trican Well Services ? 2.2% profit (2 weeks)
  • Infomatica ? 14.3% profit (8 weeks)
  • Google ? 1% profit (6 weeks)

Even as you read these profits, you might find yourself thinking ?2.2% or 1%? Big whoop!? Sure? we expect more, and quite frankly, we should want more. BUT, if you exam what is often referred to as your ?trading / investing psychology,? by simply considering your thoughts about these 4 profits, you?ll discover whether or not you have the humility necessary to be a successful investor.

Humility? the ability to take small profits? and the willingness to bend down, pick up a penny by taking a small profit and putting it in your pocket is one of the most important steps toward making money investing in the stock exchange.

Source: http://www.investinthemarkets.com/how-to-trade-in/penny-stocks-invest-in-the-markets-style/

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