Everyone wants to enjoy a great meal prepared the right way with a great experience. Trading penny stocks is like cooking. You can’t cook a nice steak (nor any meal) without it being prepared the right way. Seasoning, marination, temperature settings and of course an experienced chef. Perhaps there are more components but overall if you are missing any of these components the steak doesn’t taste right. Same thing with trading. Its a recipe of varying factors. When trading you should keep these questions and principles in mind.

 

• Is the stock volatile now and had previous history of volatility in a short period of time (1-5 days of 50%-100%+ gains)- MULTI-DAY RUNNERS
• Are there traders buying and selling the stock abnormally of what it usually trades-VOLUME
• Where is the closest area I can buy the stock without falling quickly and losing a lot of money and does it have room to go up from where its currently trading-SUPPORT
• Where do I need to sell stock before it starts to go back down again-RESISTANCE