The "Play-it-Safe" method has been known by many different names, but for lack of knowing it's real name, we'll call it the "Play-it-Safe" method because that is what it is. This method avoids greed, and allows you to play on someone else's dime (if done correctly).

The method:

  1. Buy a stock. Set a stop-loss order for 25%, or wherever you are comfortable. This allows for room to escape if necessary.
  2. Hold the stock until it doubles.
  3. Sell 1/2 your position to gain back your original investment.
  4. Play the stock as long as you remain comfortable with it.

Using this method, you can safely play the penny stocks without any additional injuries!