Being a successful trader you need good research skills that you can use to profit in penny stock trading. Research provided by stock picking services like microcap millionaires can be a huge help when wading through the muck of penny stocks. Using volatility to your benefit, managing your money and risk, staying disciplined and focused using a trading system that works is a winning combination. No matter what you are trading always take advantage of market volatility. In doing this you take a predefined risk in order to benefit from a change in price. When you trade stocks based on the microcap millionaires stock picks you are given a predefined amount that you can risk in a trade. You are given a recommended entry price, a stop loss order price and a price at which to take profits. Unfortunately this alone is not enough to be successful. You must preserve your capital by never risking more then 2-5% of you account on any given trade. All sucessfull traders follow this rule. You should do the same. It will protect you so you can live to trade another day even if you have made a few bad trades. With proper money management you can limit your risk and maximize your trading profits. Discipline yourself to use a strict money management system. When you trade the picks from microcap millionaires you will be trading the most lucrative stock picks and not wasting your time shooting at stocks in the dark hoping to make some money. But even with their expert advice and picks you still need to have discipline. Don't hang on to losing trades but don't panic either. It's a fine line you are walking. If you want to be the type of trader that routinely catches 100-3000% moves in the penny stock market, then you need a proven trading system, personal discipline and a money management system.About the Author:
Charles Berkshire trades penny stocks and one of his tools includes a subscription to microcap millionaires. Find out why this service is being used by more and more penny stock traders. Click here