While it may sound intriguing, don’t fall for the idea that day trading penny stocks is going to be an easy way to make money quickly. This style of trading actually comes with a lot of risk and if you’re not prepared for it you can lose a lot of money quickly. Day trading requires time, effort, research and due diligence if you want to succeed and maximize your profits.
Newsletters can be a great resource because they focus on covering the ever-changing market of day trading. Finding quality day trading newsletters is key as they can provide you with a strong foundation and help you find good penny stocks and make smart picks. Continue reading
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.
When you first begin your journey towards penny stock fortunes, I suggest you look for stocks within an industry you understand from previous unrelated experience. Consider your hobbies and interests and even previous responsibilities. Then create a list of companies associated within these areas of your knowledge. Then start collecting data and monitoring their chart performance without any intention of selling or buying penny stocks.
You want to watch for patterns in their chart behavior. You’ll notice companies in the same industry will exhibit some behavior similarities. Continue reading
When looking for information on how to day trade for a living you need to look beyond the strategies and promises of huge returns. Day trading can be a lucrative career for the right personality, with the right financial backing, and with the right life style. Can you make a living day trading? Of course you can. Should you choose this career for a living? That is a completely different question. It takes experience, knowledge, discipline and tremendous poise to really do day trading for a living.
It can be easy to fall in the trap of thinking life is about trading. But it’s important to be social with people outside of the day trading world. It will help you keep perspective on what the real world uses the financial markets for and why. I hope this new article opens your eyes to the intimidating but exciting world of day trading Continue reading