Don't chase after a rising stock price. There are always other options in the penny stock markets, and a superior investment strategy involves acquiring shares before price rises begin. A flexible portfolio can greatly improve your returns. Too often investors hold on to a stock that has multiplied five or six times in value, hoping for an even greater rise. Don't panic sell.
Small stocks are very volatile, and can rise or fall greatly within days or hours.
Also understand that if you are adverse to any degree of risk or volatility, then more conventional investments such as bonds may be more appropriate for you. However, with professional guidance risk levels may not be greater than those found on the conventional stock markets. Your trading frequency will generally be greater and trade share values will be less with small-cap penny stocks, so a discount broker will help you avoid high commissions. One good news break can send your small stock on a joy ride. Only trust a proven recommendation service, like us, or do your own research.