Locating  the best penny stocks can be a nearly impossible task .One of the primary keys is to work with a team that provides the best penny stock advice. Never depend on gurus that only provide lists like the top 10 penny stocks or even the top 1000 penny stocks because these lists are often out of date and don’t provide solid reasoning or entry/exit levels. They really don’t do you any good without the details of why and how to execute the trades.

Worst yet is most penny stock advice services are paid by the penny stock companies to provide penny stock tips. As you can imagine, this penny stock advice is very biased and virtually worthless as to how to find the best penny stocks.

Fortunately, services like Wealthpire’s premium advisory Penny Stock Guru are independent and provide professional unbiased penny stock tips and only the best penny stock picks.

Even with the best penny stocks chosen by a professional, traders need to follow certain rules to create consistent profits.

Here are the basic keys you need to know:

Key 1 : Never Trade Without Stop Losses

The volatile nature of penny stocks makes this rule a must to follow. If you are disciplined and experienced mental stops can work. If you are new to the game, only use fixed pre-set stops that are placed at the same time you enter the market. Penny stocks move so rapidly that without stops it’s easy to have your account wiped out.

You see even with professional highly skilled picks like the ones from Penny Stock Guru, the stock may make adverse moves prior to going in the projected direction. Stop loss orders will prevent you from losing your trading capital.

Key 2: Take Your Profits

It is very tempting to hang on to penny stocks beyond the profit targets. You make 50% on the trade and then you want a 100% return. Follow your rules or the advisory suggested profit target and get out at your profit target. Remember, you can always buy again and the market will always be here. There is no reason to press your luck with gains!