It’s doubtful there is any investor who doesn’t hope to profit, but the savvy investor will understand their own financial situation before taking the investing leap. This device should be used, whether you’re investing for the short-term, and looking for maximum growth with Penny stocks, or investing conservatively for retirement. In order to make an informed decision, take the time to determine your income and expenses using the following as an example only.

Mortgage Taxes Loans and credit cards Day to day living expense Emergency fund (make certain to put this in place) Transportation expenses Leisure activities Student Loans Other commitments to family and/or friends

When we begin thinking about investing, we need to first look at our own financial situation to determine what amount we can safely invest each month. It’s always wise (that should read crucial) to invest with your surplus, and not your rent (by rent we mean any monthly expense you know will be spent).

If you do not have the money to invest today, begin to save a little bit from every paycheck or lump sum you receive. Experts suggest putting 10% aside as an emergency fund, then taking out an additional 10% for investing. While you’ll need to make your own decision concerning this, be certain to consult your budget to be certain all areas are completely covered.

If you’re single, this may not apply but if you’re married with children, always put your family first. We may be investing to help our family, but we don’t want to put them in jeopardy in case something were to go wrong. In order to accomplish this, you’ll want to make certain your debts are paid, life insurance in place, and emergency fund has sufficient assets to help the surviving spouse begin a new life.

Each of us is unique and deals with investment strategies, and life in general, differently. There are those among us who are conservative, and others who are risk takers. An honest conversation with yourself, or your spouse, will help you determine what type of investor you are, and what are your goals for the future. we are extremely bullish concerning penny stocks, believing they can be an integral part of any portfolio, offering significant possibilities for excellent ROI.

In real estate it’s location, location, location, on Wall Street its diversify, diversify, diversify. While I believe strongly in penny stocks, I never put all of my eggs in one basket, since there are new penny stocks to invest in almost everyday.

Always take the time to either research before you invest, or be involved with a quality expert or a newsletter that knows your niche. Often times you’ll find the best investments are those that run contrary to what your financial advisor, (usually very conservative) may advise. Just like investors, there are conservative and risky financial advisors. Take anything that is said as advice, not fact then research on your own. There is no such thing as a Wall Street crystal ball, but there are ways to obtain good information.

Never chase a losing stock, this is most often throwing good money after bad, it is much better to take your losses, learn from your mistakes, and live to invest another day. While we have seen many penny stocks rise as much as 25% in a single day, many continuing to increase 100, 200, even 500% in a week, this is not always the case. When you’re on board with a winner, take your profits, reinvest and celebrate your success.