It happens in every single profession. Things are given special names and expressions are created to define certain situations or relationships. This is no different when it comes to trading top penny stocks. This article contains some of the ones we've used or heard most frequently in the time we've been trading.
The Trend Is Your Friend
Oh boy, we must have heard this one millions of times. It's pretty simple to understand, the message it gives is very clear and has definitely helped us out over the years. It refers to the fact that you are more likely to make a profit if you go with the market rather than against it. So if the general trend of the market is upwards, you should be looking to buy and then sell higher.
Bulls Make Money, Bears Make Money, But Pigs Get Slaughtered
This is an expression that is used to remind you to walk away when you are up and to not get too greedy. You can make money in any type of market conditions but greed often has a habit of setting you up for a (potentially very large) fall.
Cut Your Losses Short
The first part, "Cut your losses" is a saying that is used in all parts of life to be honest but when it comes to stock trading it is more valuable than anywhere else. You won't be able to avoid making a few losses, the trick is to close your position before it gets out of hand. This allows you to preserve your fund so it can be used elsewhere.
Buy The Rumor, Sell The Fact
You are probably already aware that the stock markets don't move on fact alone. Rumors often have a huge impact on stock prices as the market tries to predict the outcome of important events that are expected to happen. Once this event actually occurs though it is the best time to sell as the market has a habit of doing a 360 afterwards.