Quote:
Originally Posted by Rain Man
I don't do penny stocks, but my regular stock strategy is to sell off 80 percent if I find myself up 20 percent in a year (to avoid short-term capital gains taxes). That's for my non-IRA investments. In the IRA accounts I'll sell off earlier if I'm up 20 percent, because I don't have to worry about taxes in those accounts.
In a penny stock I'd probably sell any time I got up 20 percent because I feel like those can crater pretty fast.
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Trailing stop %'s are your friend.