Can you just start with nothing with little experience and pick good penny stocks to make a penny stock fortune? Well… probably not. Day trading penny stocks online is not a get-rich-quick game and it is not an easy skill to learn.
Certainly there are some people who make significant money with day trading penny stocks and regular stocks… ordinary people who trade in their own time perhaps as a hobby rather than as a professional trader. It is very likely, however, that although they started trading penny stocks they eventually moved up to other potentially more profitable stocks using larger sums of money once they felt they were more experienced, and had more money to buy penny stocks and other stocks.
Of course the question for many people reaching my site will be how do you start making profits more quickly buying penny stocks with the least risk? How do you find the?
What Are Penny Stocks Exactly?
Before we attempt to answer that nebulous question, let us quickly define exactly what we mean by the term penny stocks. There are different precise definitions, but in general the phrase refers to low priced, highly speculative stocks which normally sell at less than $1 per share but sometimes sell between $1 and $5. Even good penny stocks are very volatile and can rise and drop hundreds of percentage points in minutes, sometimes as much as 400%. This can of course be financially dangerous, but it can also be extremely profitable if you really know what you’re doing and you happen to finish on the upper end of that 400%.
Finding Good Penny Stocks
Now that we know what penny stocks are, how can we quickly work out what to trade and when, to maximize our profits? How do we find good penny stocks? Remember, normally only after we have made a number of trades using small low risk sums can we even think about making the kind of trades we need to make the big money.
There are no all-the-time sure-fire “good penny stocks” and anyone who tells that is selling you something. So you have to learn how to determine the good penny stocks to buy on your own, no matter what stock software or penny stock newsletter you utilize to assist you in arriving at your conclusions.
In most cases day traders simply have to put in the hours — and weeks and months and years — to become experienced and savvy in the penny stock trading market. Only after trading many times and analyzing the trends and results over a long period can a trader dealing in day trading penny stocks say he really understands the ebb and flow of the penny stock market, and even then he will still lose on many of his trades.
However, there are of course many shortcuts on offer. There are many “systems” available, ways to help you identify trends and profitable opportunities as they happen, but there are some significant problems with most of them. The main problem is simply that any system still relies on analyzing the historical trends, and this takes time and effort.
Penny Stock Software
We now have software which performs scans of stocks looking for companies who are forming bullish trading patterns — their stocks are exhibiting behavior indicating that they’re about to increase. This software records historical information constantly and learns more and more over time, and every week it outputs recommendations of stocks it thinks should be bought and sold.
These recommendations are only made when the software is confident in the outcome, based on the huge amount of data it has analyzed.
Penny Stock Brokers
To actually start buying and selling penny stocks you’ll need a quality broker to help you navigate the shark-infested waters. Take a look at my list of the best online brokers before you consider committing to anyone in particular. Different brokers offer different services and the fees they charge will vary based on the services they provide.
Penny Stock Newsletters
In addition, you will find a variety of penny stock newsletters which attempt to advise you and warn you when good penny stocks to watch are available. Be wary of many of these newsletters as they’re often part of a pump and dump scheme, but at the same time if you’re serious about succeeding I suggest you try a couple different newsletters and monitor their penny stock picks while you do your own due diligence to compare your evaluation with theirs. Just don’t waste your money on buying a single, static penny stock list.
So in the end, the keys to finding good penny stocks to buy — and even great penny stocks — involve your own practice, study and due diligence in combination with quality penny stock trading software and a quality penny stock newsletter._____________________________________