"Whenever I enter a position, I have a predetermined stop. That is the only way I can sleep. I know where I'm getting out before I get in. The position size on a trade is determined by the stop, and the stop is determined on a technical basis."

Buy the strongest stocks that keep moving up. Add to your winners, get rid of your losers, and don't get too greedy.

Many large mutual funds and hedge funds cannot even look at a stock if its market cap is less than $5 billion. If you can enter the uptrend early, when the stock has a market cap of less than $5 billion, you will be well-positioned if the stock trades higher. Once the stock reaches $5-10 billion, there is a whole new set of institutional buyers who

When all of the experts agree, then something different is going to happen in the market. The current conventional wisdom is always already priced into the market.

If your order is filled, hold on to the stock for the rest of the trading day, and then take profits a couple of minutes before the market closes that day.

If your order is not executed in the next 15 minutes, cancel your order and walk away.

In addition, penny stocks are inherently more volatile than higher-priced stocks. Think of it this way: if a $100 stock moves $1, that is a 1% move. If a $5 stock moves $1, that is a 20% move. Many new traders underestimate the kind of emotional and financial damage that this kind of volatility can cause.

I also like to look for growth stocks, where the float is less than 20% of the total number of shares outstanding. The “float” is simply the number of shares of a stock that are actually available for trading.

Don’t force a trade. Be patient, and wait for the fat pitch. If you can learn patience and discipline, the market will eventually reward you beyond your wildest dreams.