Limit Orders - I just about always try to use limit orders. A limit order is an
order to buy or sell a penny stock at a price you specify or better. If you buy the
stock, the ask price must be at your price or lower for the order to fill. If
you are selling the bid price must be at your price or higher to fill.

I feel that limit orders are the best type to use when placing orders for penny stocks. You always know that your order will not fill at a worse price
than you might expect. The worse case scenario for using limit orders is
that your order might not fill at all.

The best way to get a limit order to fill quickly is to place your order at the
current bid or ask price (depending on whether you want to sell or buy).
Orders placed this way usually fill very fast. If your order failed to fill right
away you can assume the price changed before the order was entered.

If you miss your order due to a quick price change you can cancel your
old order and enter a new order. Bid/Ask prices can whipsaw back and
forth many times during a single day. You can stay on top of this type of
situation by regularly monitoring the bid/ask quotations of your stock.

Reverse Psychology - Many times you'll be faced with making decisions
that might seem a little illogical at first glance. Sometimes you'll buy a
stock when the average investor is selling and driving the price down and then selling on good news while others are buying in at inflated prices.

Stop Loss Orders - I don't use stop-loss orders unless I'm in the money.
This means that I've already made some profit. Stop-loss orders are a
sure way of selling at a loss. You would place a stop-loss order after your
stock has moved up to the point that you might consider selling it.

All this order means is that your stock will automatically be sold when the
price falls to the level at which you placed the stop-loss order. This is a very good way to protect the profits that you have in the stock. You can
check your price charts to get a feel for how your stocks price fluctuates.

If your stock rises to $3.50 you can enter a stop-loss at about $3.125.
Don't put your stop-loss to close to $3.50 if you think the stock might be
moving higher. Stocks often fall back off their highs a 1/4 to 1/2 point or
more before moving to newer highs. If you're to close you'll stop-out.