I said earlier, that you needed to have some idea as to how you wanted
to approach each penny stock trade that you make. This is nothing more than making a decision to get out early with a profit on a small move, or just simply
hanging on for awhile, because you've got faith in the stock you picked.

Let's say you buy 5000 shares of you favorite stock at $1.00 per share.
If you sell out at $1.125 (1/8th point more than you paid) you'd make a
profit of $0.125 cents X 5000 shares which is $625.00. Your stock could
move up I/8th point within 30 minutes, 1 hour, one day, or one week.

Let's say that you sold out on the third or fourth day or maybe even the
third or fourth week. That $625.00 ain't too bad. That's 12.5% on your
money in just a few weeks. Many times the stock will move up real fast
because all the newsletter subscribers are diving in and buying stock.

It's not uncommon for stocks to move up a full 1/4 to 1/2 point soon after
a newsletter or hot-line issues a buy recommendation. A 1/2 point move
would have been a $2500.00 profit instead of just $625.00. It's also quite
common for these stocks to fall back to the recommended buy-in price.

I've purchased stocks that went up like this many times. I've also taken a
quick profit (like the $625.00 above) and just waited for the stock to come
back down again. I don't mind buying the same stock back again because
I thought it was a good stock to hold on to, to begin with.

You can use the $625.00 profit to buy more shares when the price falls
back down, or you can go buy a new color TV. It's up to you. Quite a few
of these low-price stocks regularly cycle up and down as much as $0.50
to $1.50 per share. Some of them do this 2 to 3 times a year.

You can put yourself together a qualified list of 10, 20, or 30 stocks, that
have a history of trading up and down this way. When one stocks goes
up and you take your profit, you'll just go to your list of stocks and look
for another one that's trading at the 52 week low, and you'll buy in again.

You could also hold on to the same stock until it approaches that regular
52 week high. It might take 3 or 4 months, or as long as 6 or 8 months to
get there. If you sell 5000 shares at a $0.75 cent profit, that's $3750.00.
A $1.25 profit gets you $6250.00. Just think if you had 10,000 shares.