Day Trading Penny Stocks

by Paul

With bold changes in legislation, remarkable advances in technology and the expansion and evolution of The Internet, day trading penny stocks is now available for even the most casual of investors. No longer do you need to wear a stuffy suit or slog your way through a four year university. Anyone can begin buying penny stocks right away. While this is empowering, it doesn’t mean you should jump right in without understanding what you’re getting into.

This new, growing and improving technology gives the financial power back to the individual, any individual, namely… you! Will you sit on the sideline or will you muster the courage to change your life? Before you succumb to hype, however, please realize that day trading for a living requires hard work and exceptional emotional discipline.

Day Trading Penny Stocks Is Not A Game

One warning: Day trading penny stocks is not a get-rich-quick opportunity. In fact, it carries with it great risk. If you are not prepared to due your own due diligence and put in the time and effort required to minimize risks and maximize penny stock profits, then I suggest you place your investment elsewhere.

Day Trading Penny Stocks will be geared towards beginning and intermediate knowledge levels. However, some of the techniques or resources provided can have you trading smaller amounts on par with savvy veterans within a year. While I will discuss some of my favorite day trading penny stocks newsletters, please understand that you must always base your decision on your own efforts and not take any single resources as your source for penny stock success. I will encourage you to seek investment advice while you learn, but don’t let any single source dictate your actions.

Day trading penny stock newsletters can be vital if you want to trade seriously. While a static website like this can provide you the skills and knowledge to succeed, it cannot always provide you the most up-to-the-minute information. Quality, legitimate day trading penny stocks newsletters tackle the ever-changing market to provide a solid foundation of smart picks — and market news influencing those picks. However, they cannot provide you with winning picks either. They only provide you with a foundation for your decision making.

Day Trading Penny Stocks Carries Significant Risk

Please note that penny stock trading is a risky business. Day trading those particular stocks only make it more challenging. If you are a beginner investing for the first time, this may not be the best area for you to start. When you begin, I urge you to begin by thinking in terms of limiting your risk rather than turning a quick profit. The profits will come with patience and practice. But to day trade penny stocks requires discipline, consistency and above all else an emotional control. Don’t act on a whim, act with purpose as part of an overall strategy.

Here’s one of the most important lessons you can learn: you should be VERY skeptical of any website which provides free picks. Smart picks are money, and the truly worthwhile smart picks will only be found in professional journals and newsletters. If you find some site freely listing the “best penny stocks” or some such nonsense, they’re probably just trying to part you from you money.

If you’re at all interested in Day Trading Penny Stocks, then you need to prepare to spend a little money up front. I’ll tell you right now, anyone who expects (or dreams) otherwise is doomed to fail.

I don’t mean to sound harsh…

But let’s not be naive about this. It is a competitive industry and the people that really make it work aren’t just giving their picks away for free.

Beware of Penny Stock Scams

I’d also like to point out that many penny stock newsletters may be exploiting the market by buying a stock, hyping stocks through their readership, then selling once their hype has influenced the value of that particular micro cap stock. This is a problem with the OTC stocks. Because of their volatility, they’re more vulnerable to manipulative influence.

We have more content coming soon, so please check back with my site in the near future.


Penny Stocks Online

Despite the misleading hype you may find on the Internet, trading penny stocks online may be more risky than trading normal stocks. This is not a get-rich-quick scenario and if you treat it as such you could very well suffer the consequences.

Penny stocks are traded via something called an Over-the-Counter Bulletin Board — often simplified as the OTCBB — or perhaps via Pink Sheets. The low value of these stocks indicates either brand new corporations or corporatations which are in a struggle to survive. New companies sold on these boards haven’t yet proven themselves ready to be traded on the NYSE or NASDAQ. Older companies traded as penny stocks may have been penalized and removed from those major exchanges.


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Best Online Brokers

Using this list and the brief descriptions of the best online brokers can help you find the right broker to fit your needs. Since Day Trading Penny Stocks focuses on independent trading of penny stocks, I emphasize brokers that provide cheap online trading. However, I will also provide some full service brokers (which usually cost a bit more) for comparison’s sake.

It’s important to note the broker you choose can have a big impact on your overall stock trading experience. Some brokers offer more services and tools while other brokers offer limited tools and services but cheaper trades. It’s good to evaluate all of these things as you are choosing the best online broker for your needs. For some people cheap trades are more important, and for others the services and tools are more important. It’s a very personal decision that can impact your profits in this market. […]

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