The #1 Most Important Investing Tip for Penny Stocks

Have you lost money in penny stocks? Still bagholding penny stocks? Or you just want to become a better penny stock investor? In today's video I discuss the most basic, simple, but important investing tips for penny stocks, macroeconomics matter! Yes if there is a recession then Tesla share price might drop 10%, but in a bear market crash a penny stock share price can drop 100%. Let's discuss how to invest in penny stocks for beginners with this amazing information on microcap stocks.

Key insights
📉 The average down cycle for penny stocks sees a decrease of 84%, while the average up cycle sees an increase of 879%, highlighting the extreme volatility and potential for high returns in this market.
📉 Understanding the timing and macro cycles is crucial in investing in microcap stocks, as they experience frequent ups and downs unlike the S&P 500.
⏰ "Upside periods in microcap stocks are reasonably short, lasting a little over a year, so it's important to take advantage of these opportunities and build positions during the upward cycles."
📈 "It's not only finding the best stocks that will make us the most money, but also identifying the next big sector or microeconomy."
💰 Missing the 10 worst weeks in the market can actually generate a 16% annual return, highlighting the importance of avoiding downside risks.
💰 "If you can avoid 50% of the downside volatility, then you're going to make money in microcap stocks."
⏰ Understanding the liquidity cycle is critical when investing in penny stocks, as buying at the peak can result in significant losses, while investing during down markets can lead to substantial gains.

Full length video can be found on @PlanetMicroCap here https://youtu.be/apkFD3gDwYk?si=WlOCXYtN8hFa0wo1

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Welcome to the Common Sense Investing channel! Here you'll find engaging and informative content about stock market investing and financial education. Unlike other channels, I am dedicated to providing you with unbiased insights and analysis, without any paid promotions or pump-and-dump scams.

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PLEASE remember, I am NOT a financial advisor, am I NOT your financial advisor. I do not possess formal training as an accountant, financial advisor, or economist. The opinions expressed in my videos are those of a common retail investor and are intended to stimulate discussion and create conversations about stocks and stock market investing. They should not be considered as financial or investing advice.

Please note that my channel focuses on investing in stocks under $5, commonly known as "penny stocks" with a small portion of discretionary income. This platform is not intended for long-term goals like retirement or savings. I highly encourage everyone to follow sound financial fundamentals, including building emergency savings, obtaining insurance, and investing the majority of your principal savings in global market index funds or ETFs before exploring direct investing in stocks. It is advisable to consult a licensed financial advisor to discuss your specific investing goals.

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