Bottom Fishing - It's been my experience that the best way to get a good
price on a penny stock that you've picked out is to put in a limit order at a price
that's lower than the current ask price. If the stock you want is trading at
$3.00 a share, put in your limit order at $2.75 per share, and wait it out.

This is where patience pays off. The price of a penny stock can move up and
down many times during a single day. If you place your order ahead of
time and let it sit, it will fill when and if the price falls to the level you want.
This won't work every time, but when it does it's a good feeling.

Other Useful Limit Orders - There are other types of limit orders that fit
our trading strategy. A GTC order means (good till cancelled). A "Day"
order means (it's good until the end of that trading day). An AON order
means (all or none) of the shares you want.

If you want your entire order to fill at one time use a AON order. This will
prevent partial fills (part now, another part later). A partial fill also means
that you pay a commission (broker fee) on each partial fill. The market
makers aren't required to fill all of your order at once. AON prevents this.

Selling - I believe that selling is much harder than buying for most people.
When a stock starts to move up most people tend to get a little greedy.
They tell their friends that they've got X number of shares of a great little
stock and they brag about how much profit they have.

They get quotes all day long and start dreaming about how they're going
to spend all that money they're making. They forget that a stock can go
down just as fast as it went up (sometimes faster). Smart traders set a
price in advance at which they're willing to sell the stock if it goes up.

Most of the penny stocks that we'll follow fit into that 52 week high, 52 week low,
trading pattern. We know in advance that we want to (sell-out) at or near
the 52 week high. It's very possible that the stock you'll own could go well
past that 52 week high and reach all new unexpected highs.

Using a GTC order is a good way to sell a stock. If the stock price moves
up to your order price (even if just for a few seconds) it'll fill, because it's
"on the books" in advance of the price move. You need to start thinking
about selling your stock the minute you buy it.