Day Trading Penny Stocks, How To Begin
Looking to day trade penny stocks? It can be fun and profitable, but you have to know what you are doing. You just can't walk in like a cowboy buying and selling randomly. You may make money short term like that. In order to make real profits, you will need to have a strategy to day trade penny stocks.
When I say a strategy, I'm talking more than buying low and selling high. That is the idea of course, but you need to figure out what stop to buy to achieve that.
If you are a beginner to penny stocks, you will need to learn a little more about this market. The easiest way is to try several of the penny stock newsletters on the Internet. Many of them offer a free issue or trial subscriptions. Others will offer a discounted subscription. This would be a good place to start learning about trading penny stocks.
Don't subscribe to every letter you see. This will only confuse you and leave you worse off. Start with 5 newsletters. Try them out for a month. You don't have to rush to invest. See if these letters offer you good information. If they recommend a stock, why do they recommend it? This will give you insight on how to find profitable penny stocks to invest in. Keep a record of their selections. Where they profitable? Would you have been able to handle the price movement of the stock? These are all very important questions to ask before investing.
You will notice I said before investing. Before committing your hard earned money into the market, you should paper trade for at least a month. Paper trading means trading without putting money n the market. You will need to keep a record of your trade just as if you actually bought the stock. By paper trading you will get a feel for trading without risking any money yet. Use the recommendations you get from the newsletters to paper trade to see how you would have done. If you have lost money for the month, you can exam why. Did you trade poorly or did the recommendation suck. Perhaps the letters style doesn't match your. That's ok; there are many ways to trade penny stocks. Move on to another letter to se if that fits you better.
When you are ready to commit your money to the market. You will need to open a stock account. OptionXpress lets you trade penny stocks. Sharebuilder is great for beginners. Commissions are about $4, which is very low. Why spend $10 and up for the same trade. They also will let you open an online account for $100. This is great for someone with a little capital to start with.
To begin day trading penny stocks, do some research. Try a few newsletters to help you learn more about the market. Then find a low cost online broker to day trade penny stocks.
Yes
No
Flag
Comments
Penny stocks can increase ones trading profits in spades with a lot less risk. One need to be able to do a quick scan of the thousands of penny stocks that there is in the market and knows which ones have the highest percentage of going up.
You must be logged in and verified to post a comment. Please log in or sign up to comment.