There is one thing everyone day trading penny stocks absolutely has to live by in order to make a fortune investing in penny stocks. It should actually be a requirement before you are allowed access to an online trading account because without it, you will not be successful even with the best penny stock picks like Premier Beverage Group (OTCBB: PBGC.PK) . Plan your trade and trade your plan. In other words, leave your emotions for your loved ones and listen to your brain.
Assuming you bought OTC Bulletin Board listed PBGC a month ago when it was at 0.075 and you’re up 278% going into today’s trading session. Excellent! PBGC is in the business of developing, marketing, and distributing beverages through their subsidiaries, Captive Brands and OSO Beverages which is always been a successful industry, even for startups. Now comes the hard part. You’re up 278% and considering selling your position in PBGC but your emotions are telling you; “What if it goes up to 100% today? If I sell out now, I’ll miss out on even more profits that PBGC could bring!”
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PBGC has the right products, the right ambition, and it is in the position to skyrocket.
Penny stock traders have seen the beverage sector explode time and time again. Beverage sector penny stocks start out at fractions of a penny per share and skyrocket to become a $5 stock within months. Many day traders always look for these penny stocks so they can scalp some profits during swing trades but the long-term investors are making money in this sector. The younger generation is opting for functional beverages as their choice similar to when Gatorade, Coca-Cola and Pepsi stormed the scene and replaced Tang in the late 70’s.
So You have 2 options:
- Option #1: Listen to your emotions, hold on to PBGC, and get on your hands and knees in front of your Level II screen and pray it continues to go up.
- Option #2: Listen to your brain, sell out half the position you have in PBGC and monitor any changes in the price to limit your downside while booking profits.
It’s a tough choice to make considering PBGC has been able to beat the odds despite their promotion and development costs. PBGC has a higher margin for retailers compared to many of the national brands which means that they are gaining market share in many sectors and categories. With the economy having been so rough the past couple of years, beverage retailers have been looking for ways to save money without sacrificing quality which would drive away customers.
PBGC recently became the choice of the New York Water Taxi Group. Between 1.5 and 2 million people pass through the NYWTG every year. This could cause many investors to not only hold on to PBGC shares, but to buy more averaging up since it appears as if PBGC is gaining momentum with investors. PBGC price per share is low, but how low it stays is going to depend upon how investors react.
So, back to the options mentioned before, which option sounds the best assuming the situation?
You would never believe it but most people normally choose option #1 and end up losing their gains. As a penny stock investor, you have to be responsible and know when to book profits, be happy with a nice profit and forget the ticker symbol. This is the biggest problem penny stock investors trying to make money trading penny stocks have and why they call investing in penny stocks risky. It is no more risky than any other security based investing except that you need to not be greedy.
PBGC, has a portfolio of functional beverages that include energy drinks, vitamin enhanced waters, and energy shots. PBGC has expanded significantly within the past 5 years and has made its mark on the beverage landscape that was once dominated by the carbonated brothers; Coca-Cola and Pepsi. Functional beverages are quickly becoming a drink of choice for teens and young adults and with the older population discovering what energy drinks and other such products can do for them, PBGC stand a good chance of gaining further into the .30-.40 level.
Bottom Line: There’s nothing wrong with making a nice profit, and leaving a stock early. PBGC should be on every penny stock list as a stock to watch today.
If PBGC breaks and holds the .30 level which it tried to reach yesterday, it could surely push its resistance level higher. Contrarily, PBGC has been on an exceptional run so expect for other investors who got in at the beginning of the month to be boking profits and scalpers to be chopping away at every fractional move today.
With the strong volume and the low price per share, PBGC may be soaring high in no time. It closed at $0.18 on Friday and closed at $.0.28 yesterday, a 55.56% weekend hold gain.