Paradigm Capital Management Ways to Manage Risk with Penny Stock Trading

Progress and investing always involve risk. Perhaps this is truer in the penny stocks arena than with "normal" stocks. You don't need to let this stop you from the profit you deserve though. In fact, by taking some precautions, your trading can be far less stressful and much more rewarding.

Let's take a look at some things as per Paradigm Capital Management experts you can do to increase your trading success.

One of the worst moves you can make is to invest with money that's crucial to your survival (rent money, food cash, etc). Never invest with money you can't afford to lose. In fact, the more you need the money, the higher your stress will be and the more mistakes you'll make.

This doesn't mean you should just throw your capital out with the bath water. You need to be smart. But you want to invest/trade with capital that could be lost and not hurt your lifestyle.

Don't be scared to miss "the next best thing." The world is full of opportunities and in this arena opportunity to make money exist daily. Don't be a sucker. Lots of scams happen because people think this is their one and only opportunity to "make it" in life.

Sometimes money can be made by shorting a hyped stock at the tipping point.

Before trading a stock, make sure the company is real and doing real things. Thanks to the Internet, you can find out a lot about anything quickly. Beware of false press releases. Anyone can write a press release and distribute it for cheap.

Instead, look for products and services being offered, information for credible news sources, and so forth. Also beware of micro-penny stocks being hyped up on forums. Usually these are just "pump and dump" tactics.

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