Tuesday, 26 July 2011. When To Sell Penny Stocks. Penny Stocks can be a very effective way to provide you with a secondary income. They can be used to create passive income because they do not require you to be constantly watching over them. The problem that most people have when it comes to stocks is - not knowing the right time to sell. Investors seem to forget about researching to sell stocks. Instead, they let their emotions take control and sell at the wrong time.

Hence the term speculation, which is the lifeblood of any Penny Stock trader. What can you do to protect yourself from being caught up in a pump and dump scenario? Most importantly you must use your own due diligence to wade through the hype. Ask yourself a few basic questions about the company in question. Are they making money? Are they creating new products? Are these new products going to be valuable in the future? View my complete profile.

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