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Part of the volatility of Penny Stocks is that a significant decrease in value can
still be followed by another big drop. Therefore, in order to cut down your
losses, it is important to set a limit on how long would you be willing to hold on
to a losing Stock. In the same way, you should know how long you will hold on

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to a winning Stock. Again, even if a Stock continuously experiences an increase
in value, there is still the possibility that its price can just drop dramatically,
almost without any warning.
Look for Patterns
The movement of the prices of Penny Stocks can somehow be random. The
thing is, randomness creates patterns. And, if it is not random, then there is more
possibility to find a pattern. If you can identify these patterns early, then you will
be one step ahead.
Observe the Trends
Do not just study a stock’s current record, but also check its past performance.
This is a good way for you to know if the Stock is really doing well. Also, do not
rely completely on the latest trends. Although the latest trends can show you the
most recent performances of a particular Penny Stock, you must take note that
trends often change. In fact, in the Penny Stock market, you will barely see a
trend that will last for too long.
Know the Latest News
If you are serious about trading Penny Stocks, then you should keep yourself
updated on the latest news. The many factors that affect the prices of Penny
Stocks are usually revealed on the news. You should know that government
interventions, economy, market behavior, inflation, among other things, can
affect the prices of Penny Stocks. Take note, however, that although the news
can give you valuable insights and information, what matters the most is still the
actual prices of Penny Stocks.
Stay Calm
Bad days do happen, and you may encounter a series of losing streaks despite
doing some good research. During such a moment, or the moment when you first
experience your first loss, stay calm. Penny Stock market does not care about
how you feel, so you must remain objective and focused.

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