Almost everyone has a cell phone these days so why not use it to make you money. The benefits are many including making money from anywhere, being able to quit your job, and becoming financially independent.
Your cell phone can compltetely change your life in more ways than your social life.
Trading penny stocks will enable you to have all of these benefits and more. If you use the following simple yet crucial tips.
1. Low Fees - Since trading fees compose your only expenses you should seek to limit them through the use of discount brokers. Not all brokers have trading sites that allow you to trade from your phone so make sure they support cell phone trades. Etrade and Scottrade both allow online trades and charge less than $10 which is reasonable but not the cheapest. The cheapest brokers do not support cell phones for now.
2. Limit Losses - Since many micro stocks lose money it is important to keep the losses small through the use of stop loss orders. When you buy a stock you should also put in a stop loss order for 10-20% below the purchase price. If your stock drops to this preset level it will automatically be sold and save you from big losses. This also prevents you from having to constantly monitor your stocks.
3. Let Winners Ride - You make your big money on only a few small stocks which you want to let alone however few people have the emotional mindset to let this happen. When you start to feel anxious over your profits sell half your shares to lock in profits and let the other half in the market to gain more value.
4. Penny Picks - Do not make the mistake of thinking you can pick a winner yourself. Let the experts whom spend everyday looking over statisics make your picks. Trust me you will lose money picking penny stocks yourself unless you have many years experience investing in small stocks.
In conclusion, using your cell phone to trade micro stocks is not only profitable but fun.
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