You have to be prepared for anything. You cannot get upset about your losses or let your gains make you seem unstoppable
When you can take a profit, take it.
The Mental Aspect
In the penny world you have to be prepared for anything. You cannot get upset about your losses or let your gains make you seem unstoppable. If you take a big loss, count your losses and walk away with no regrets. If your loss was due to a mistake, take that as a gain on experience. Do not go out and try to make your money back by picking a stock you have only heard will go up. Carry on your trading normally and always do your own due diligence. If you manage to lock in a huge gain, congratulations, but make sure you put some of that money away in your bank account, and of course keep some of it for investing more. Again, always carry out your normal routine. Do not let big gains or losses change it. The biggest aspect you have to have in trading penny stocks is DISCIPLINE.
From this book I have made a set of rules that you should follow and always have in your head. I have my rules as my background over the top of the next big item I would like to purchase.
1. Always have discipline, keep to your rules and routine
2. No Pump and Dumps
3. Always do your own due diligence
4. Take losses with no regrets
5. Always sell half your shares at around a 100% gain
6. Only invest what you are willing to lose 7. Make money!
The Penny Book by Jordan D. Shaw
“We all are learning, modifying, or destroying ideas all the time. Rapid destruction of your ideas when the time is right is one of the most valuable qualities you can acquire. You must force yourself to consider arguments on the other side.
— Charles T. Munger”
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