Tips for Summer Investing

In the summer heat, many people tend to play fast and loose with their investment portfolios. This is the time in which a savvy investor can step in and make a great deal of money while minimizing risk. The speculative investors will come out of the woodwork here – make sure that you play the market with a steady ear to the street and you will come out ahead.

Here are some of the best tips for summer investing:

1) Read, read, read.

Because there will be much more volume in penny stocks over the summer than during any other point in the year, you want to stay ahead of the game by reading every penny stock newsletter that you can get your hands on. It is information that will make the difference between the investors that come out ahead and those who leave the summer poorer than they began.

When it comes to speculative penny stocks, the only risk that an investor takes is buying into something that he is uninformed of. Make sure not to be one of those investors and you are sure to do well during the summer.

2) Do not make directional bets.

The higher volume of trades that take place during the summer will be your saving grace, not making a bundle on a single trade. The way to make money off of penny stocks in the summer is to play off of all of the directional bets that other people are making.

Take advantage of option strategies and watch for pump and dump behavior from other investors. That he has people thinking that they can make a killing on one trade. Do not make that rookie mistake and you are sure to come out well ahead of many of the amateur portfolios investing in the summer.

3) Make sure that you keep up-to-date on the trends of the market place.

When it comes to penny stocks, companies fall in out-of-favor much more quickly than in other markets. Therefore as you read over your newsletters, you want to make sure that you are focusing your efforts on the top penny stocks for 2012. Remember that past performance of a stock does not correlate at all to its future performance. This notion is definitely one to be considered even more in the penny stock market, and especially during the summertime of fast trades and sensitive investors.

When it comes to making money in the stock markets, you really can’t go wrong with throwing in a few penny stocks – especially if you are a novice in such trades.  Not only do they provide great practice for more costly future investments, but they can also give you great returns.  So instead of simply shying away from the stock markets this summer due to intimidation, consider giving a few penny stocks a try to get your feet wet – the most you have to lose is a few pennies, yet you could easily gain a few hundred dollars.

Tips for Summer Investing