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9 Biotech penny stocks investing tips – Part 2

5- It is generally recommended that no more than a small percentage of your portfolio (around 5%) should be invested in biotech penny stocks, as they are high risk. Make sure you spread your risk because, whilst biotech penny stocks can make you a good return, they can suffer from heavy losses too!

6 – Biotech penny stocks can turn into a great opportunity or a huge disappointment. If it is your first time trading penny stocks, consider creating a “dry run” account. This means that you try out your trading skills before putting any real money into it. Once you have made some consistently positive trades in this account, then you should put the real money in.

7 – Consider your biotech penny stocks investment strategy. Are then any such technologies that you consider unethical? What do you think about transgenic biotechnology: many people think that this sector of the industry is set for rapid growth. As with any investing, consider your desired risk level, and investment goals.

8 – Make sure that the is up on the penny stock price chart. These means that you can research into the level of support for the stock.

9 – Stay away from message boards when getting penny stock tips. They are full of scammers who are trying to manipulate stock prices for their own gain. Penny stocks are notorious for this!

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The information supplied in this article is not to be considered as medical advice and is for educational purposes only.