4 Trading Tips for Small Capital with Big Profits

We often find stocks with giant stamps that are the main engine of the JCI that doesn't move much.

For example BBCA, ASII and BMRI, all three are members of stocks with the largest market capitalization. They became a drag on the JCI as a whole, especially in 2021 due to the less encouraging movement since the beginning of the year.

In fact, small-cap stocks whose prices are only tens to under a thousand rupiahs are moving quite wildly.

It may not be appropriate to use it as an investment asset because most loose stocks have weak fundamentals. However, as a business asset, dime shares have great potential that is a shame to miss.

Advantages and Disadvantages of Coin Trading Penny stocks, also known as dime stocks, are stocks whose unit value when valued in cash is equivalent to the remainder of the coin from in-store purchases. Penny stocks are not necessarily suitable for everyone because of their high volatility. But some people do get rich by trading small stocks.

Penny traded stocks can increase significantly in a relatively short period of time. For example, stocks like GGRM are priced in tens of thousands of rupiah.

GGRM stocks move at most only a small percentage in a day, in contrast to penny stocks which easily rise or fall tens of percent in a day.

In short, penny stocks have great trading potential. However, trading dime stocks carries as much risk as the potential. While risky, if dime stock trading is done right, it can yield unprecedented profits.

You've probably traded one stock too, right? For example, IPO shares or other dime shares that many people are defending.

Developing a fund well through its penny stock involves a variety of tasks, such as strategy, requiring knowledge and courage. You should pay attention to the following tips if you want to trade profitable stocks with minimal risk.

Here are 4 Tips for Playing Small Capital Stocks with Big Profits

1. Limit the number of purchases

It is true that his penny stock often brings tremendous profits; You may also regret buying in small quantities.

But dime bond trading should not be done with large sums of money. You should only trade dime stocks with money you can afford to lose if you lose them.

You must limit the purchase of a share to a maximum of 10% of its buying power. This way you can limit your risk exposure to your total investment.

2. Don't hold stocks for too long

The losers with stock trading are those who buy the wrong stock, at the wrong price, and usually for the wrong reasons, such as FOMO (follow for fear of missing the moment) and holding stocks too long. This is why many say penny stocks are very risky.

Therefore, before making a purchase make sure you have a clear reason why you want to buy the title. The "Review Before You Buy" formula effectively applies to all investment assets, especially penny stocks, so you don't own any old stocks.

You should not keep it in an old portfolio because shares purchased for commercial reasons cannot be liquidated in the long term. Also, penny stocks pay no dividends on average, which makes them less profitable when held long term.

The average penny stock trader acts funny by delaying losing stocks to fill his portfolio, while profitable stocks close quickly. If you have put yourself in the wrong position, you must have the courage to break the deadlock.

You have to remember that what matters most is a positive end result. Cut loss is normal, the important thing is that the end result of your operation is positive and gives you a profit.