Image Source: SGX
Penny stocks in Singapore has seen a good run up recently. Stocks like Rex, y ventures, synagine, G inva and so many more have ran up more than 100% in price.
It is not difficult to see why seasoned traders and retailer traders like to trade them. Not only is it cheaper in price it also moves relatively fast. Quick and huge gains lure most traders in. Is trading penny really that good? Is it really that easy? What happens if the stock gets suspended like Alpha Energy or like Alita resources.
Well, for us here at Singaporehumblestock, we usually err on the side of caution and would just like to share a few pointers if you’re intending to trade penny stocks.
- Ensure you have enough funds to pick up the stock, don’t get over excited and trade over your limit
- Ensure you have a trade plan, no matter what people tell you, like trading any other stocks, ensure you got a clear entry, target and stop loss.
- Ensure that the company is stable, ensure no bad news, bad debts that they are unable to pay.
- Never use margin to trade pennies. This leverage might do you more harm than good. Especially if you over leverage which brings us back to our first point.
It is always good to have an extra pair of eyes especially if you’re trading penny stocks.
Feel free to CONTACT US if you have any questions trading penny stocks.