How do you make a living day trading penny stocks. As you might expect, it is all about finding the right stocks at the right time and buying low, then selling high. And understanding that you are going to make your profits over the long run, not in one fell swoop.
Some may feel that penny stock trading is a risky way to make money. But if you approach it with serious research on your side and the appropriate amount of discipline, you can day trade your way to profits. .
Avoid Over The Counter
OTC stocks are a dicey business. They are subject to less regulation than non-OTC stocks, so that makes them susceptible to shysters looking to defraud investors and day traders. Stick to stocks that are listed on reputable stock exchanges like NASDAQ and the New York Stock Exchange. You do not want to get caught with a shady stock that is going to kill your weekly profit/loss after tanking as soon as you bought it.
Watch The Promotional Gambits
There are lots of penny stock promoters out there that are ready to sell you all sorts of bunk about the little company that could, ready to blow up and grow like crazy. Take all these stories with the appropriate amount of salt.
Adjust Your Expectations
Keep your trades smaller and your thirst for profits small and consistent. Penny stock trading is for grinders, not those looking for a big win. Rack up small wins on penny stocks and stop looking for that outlier that is going to jump from $1 to $10 per share in a week.
Track Your Performance
The best day traders and penny stock traders keep detailed records of their profits and losses. It is the only way to keep track of your money making and keep your nose to the grindstone. Good traders are methodical. They employ strategies and techniques to find the penny stocks that are about to rise and they exploit them. There is no trading on a whim or a rumor in this space.
Hit & Run
Don’t take crazy positions on penny stocks or think you are going to hit for a big score. Once you make the profit you were looking for on a trade, sell half and adjust your stop-loss to breakeven. That is the safest and most sane way to approach penny stock trading.
To get more information on penny stock trading and to learn the best ways to make money as a day trader, visit Warrior Trading on Facebook.