Millions of adults from all over the world enjoy playing card games in online casinos or their traditional brick-and-mortar counterparts. Here, gamers use a mix of strategy and luck, aiming to get a winning hand that ideally scores 21 or is as close to 21 as possible. The game enjoys significant appeal because the rules of the game are simple to learn but achieving mastery at blackjack takes skill, time, and patience. There is a need to know when to play conservatively and when to bet big.
In some respects, the strategies that underpin blackjack can apply in part to penny stock trading. Penny stocks are those that trade for less than $5 per share and are typically from smaller companies that have relatively low financial reserves and levels of investment. Some penny stocks trade on larger markets, such as the New York Stock Exchange, but it is more common to trade with them using the over-the-counter bulletin board (OTCBB). In this article, the concept of taking some of the tactics and strategies from blackjack and applying them to trading penny stocks will be explored.
Knowing when to get out
Firstly, it is important to understand that penny stocks are typically considered to be high-risk investments. They are not bought or sold as frequently as shares from larger companies, which can make it more difficult to get a true value for them. Knowing when to invest and when to relinquish your stocks is a key skill that must be learned if you wish to make a profit in this volatile market. Investing in penny stocks is quite similar to playing blackjack when you have a difficult hand such as a 16. When playing blackjack games online, this hand is difficult to fully assess. Typically, it is not close enough to 21 to secure a win, but there is a high chance that drawing another card will result in going bust. The uncertainty of this hand is matched by the uncertainty of the penny stocks market. While it is feasible that you will draw a 5, the odds of this are not high. In the same way, penny stocks have extreme potential for returning sizable profits, but often with a low level of chance. Both traders and blackjack players need to develop a level of intuition that is ideally backed up by a knowledge of the game or the market. In penny stocks and blackjack, it can be valuable to know when to sell (even if you incur a small loss) and when to fold.
The importance of knowledge
In both blackjack and penny stocks, knowledge and experience are powerful tools. For example, in blackjack, having an in-depth knowledge of card probabilities can help to improve your chances of winning a round. This will allow you to know when you have reasonable chances of winning and when it makes sense to fold. Similarly, when it comes to trading penny stocks, in-depth knowledge of the market and the individual companies is vital. Take the time to read up on the companies that you plan to invest in and look for those that have high potential to generate impressive dividends. In blackjack and penny stocks, winnings/profits are never guaranteed, but knowledge of the game and the trading companies can prove to be highly beneficial.
