I know when many people plan to trade penny stocks they've only got one thing in mind: To make as much money as they possibly can.
There is nothing wrong with that, but they think that the roads are going to be paved in gold, and that's just not the way it works.
It's not like every trade you are going to trade is going to be successful.
There is no trader on this world who can be right 100% of the time.
I'm always amazed at how unrealistic some traders' expectations are when they first get started.
You have to accept the fact that you are going to have losses.
That's just part of trading.
If you can't handle losses, then you should not be trading.
It's as simple as that.
Some traders can get incredibly demoralized when they take a loss.
That happens to most of us when we take that first loss, but how you respond is the way you are going to tell what kind of trader you are going to be.
Some traders have a gambling mentality though.
When they take a loss, they feel like they have to go back and "make up" for that loss by putting more money into each trade.
It's the same kind of philosophy that gamblers have in Las Vegas.
I don't think I have to tell you how bad that turns out for them.
Please don't make these kind of mistakes when you are trading penny stocks.
There is no reason to after you've read this article.