3 Unbreakable Tech Trading Rules
Wall Street’s smallest technology stocks offer you the best chance for oversized gains.
But breakthrough technology companies tend to behave differently than the kinds of stocks you may be used to.
The stock prices can sometimes be very low. We’re talking under $10.
Also, sometimes these companies can have very limited trading volume, meaning the number of shares exchanged on a daily basis can be quite small. This can result in orders not always being filled at the price you see.
Because of this I often suggest using limit orders (which I will cover more in just a minute) when placing your trades. This will let you set the price you want to pay.
These stocks can be very volatile. One piece of good news about a company could send the stock up double-digit percentages. On the flip side, one piece of unexpected news can send a tech stock tumbling down. That’s why it’s so important to have a plan in place ahead of a trade…
And that is exactly what we are going to cover today.
Today I would like to share three unbreakable trading rules when it comes to investing in technology stocks.
How to Buy Breakthrough Technology Stocks
Breakthrough technology stocks offer incredible opportunities to earn life-changing gains. The key is to invest wisely.
Investing is a risky business… and breakthrough technology stocks can be some of the riskiest of all because of their volatility.
Here are three tech trading rules you can apply today to maximize your profits and ensure you don’t lose your shirt on the next trade:
- Don’t bet the farm.
Don’t borrow any money to purchase shares.
You should allocate only a portion of your overall portfolio to buying these stocks.
This, however, can work out in your favor. With some of the stocks, a $100 investment in a $2 stock could double — or more — very suddenly. So with just a little money, you will be able to buy the stocks without losing everything if something goes wrong.
- Always keep some cash ready at hand.
As I said, allocate a certain portion of your portfolio only to breakthrough technology stocks. Diversification is important. Spread your cash out.
- Use limit orders.
A limit order is one way to purchase stock. Instead of taking the current market price, you can tell your broker that you don’t want to buy above a certain price — or sell below a certain price.
Limit orders allow you to keep control and stick to your trading plan.
With these rules in place you will be well on your way to profiting from breakthrough tech stocks.
Do you have any unbreakable trading rules you use? We’d love to hear from you. Drop us a line here: TechProfitsDailyFeedback@sevenfigurepublishing.com
For Technology Profits Daily,
Chief Technology Expert, Technology Profits Daily