How Long Is Best To Wait Before I Cash Out My Penny Stock Investment?

Penny stocks take a while to earn a sizable amount. Some questionable brokers won’t even respond to an investor seeking to cash out a penny stock.

Your best course of action as a penny stock investor is to monitor your stocks to determine the best time to cash them out. Waiting too long to cash it out can cause your penny stock to lose considerable value points.

Instead of selling off your entire penny stock investment, if you need the money a cash out will bring you, try to only cash out on a smaller percentage of your holdings. That way, if the stock’s value is still on the rise, you won’t lose out on the potential gains.

Some investors cash their penny stocks out based on an emotional hunch. If they panic about the possibility of their penny stock crashing, they might sell out before the timing is right. Or, they could believe their fortune in penny stocks has been too good, so they cash out to avoid anything bad from happening.

Emotions should be kept in check, and you should only sell out on the basis of real information. The performance of the company is your best guideline, along with anything new you have learned about them since you bought the stock.

If you decide to sell, you can reinvest your initial investment and enjoy the profits. Or, take the profits you made and re-invest them so that if you lose anything on your second investment, you’re not cashing out with less than you originally started with.

If your first penny stock investment was successful, do not jump into a second one without taking the same precautions you took the other time around. By applying the same criteria you did in the past you can ensure that your second investment will be just as successful.

If something goes wrong, and you end up losing your investment, backtrack your steps and try to determine if you took any false steps. Knowing why your penny stock investment caused you to lose money will help you avoid the same mishap in subsequent investments.

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Originally posted 2010-10-31 06:22:50. Republished by Blog Post Promoter

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