If you’re serious about day trading, whether as a second income or a main career, you need to be prepared. One way to help prepare yourself for this challenging endeavor is with day trading school. You want to find a school that will offer you a solid foundation of knowledge, as well as some form of mentorship and support. Coverage in these three areas is important for you success, and for you to get your money’s worth from the school. Continue reading
The penny stock pump and dump scheme is the longest running pink sheet scheme still in practice today, but it is difficult to control because of the way it works. Since the barrier to day trading has been reduced by advances in computers and internet availability more people are becoming addicted to trading stocks and making money in this market. The newcomers to day trading are often more susceptible to manipulation because they are often following technical trading patterns laid out in books, but even more experienced traders can get caught up in these schemes.
Here’s how the penny stock scheme works: Continue reading
Day trading involves sticking with stocks for the shortest period of time possible to make as many small profits as possible. Day trading often carries a stigma of wild gamblers or genius big shots playing or manipulating a system to make millions, but this usually isn’t the reality of this profession.
In reality the day trader is someone who knows how to make a consistent plan that has proved itself and stick with it. Most day traders prefer highly volatile systems like the options and futures markets, but there is plenty of room in the realm of day trading penny stocks. Here are some reasons you should or shouldn’t day trade penny stocks. Continue reading
On average penny stocks lose value over time. Buying penny stocks and holding on to them is risky for a few different reasons. Finding solid information on these companies is often difficult. The requirements for penny stocks are less stringent than they are for other stocks and often public information on these companies is scarce. They are also quite volatile, and their volatility can be quite difficult to predict. Then there is the complication of volume. Penny stocks are often thinly traded, so it can be more difficult to buy or sell the amount of shares you would like.
So why do people still dabble in penny stocks? If you can learn how to day trade you can reduce the risk of time by not holding onto them for too long and use their volatility to your advantage. Continue reading
If you’ve decided to start trading penny stocks you may be excited to jump right in and get started, but this can be a mistake. It is best to start paper trading so you can learn this market and make mistakes without them costing you a lot of hard-earned money. These stocks are very different from traditional stocks and although there is a lot of hype about the possible success in this market, there is a learning curve and it is better to learn through practice.
Paper trading is a good idea for anyone who wants to start trading stocks. It will provide you with the ability to go through the motions of buying and selling stock to see how you would do if you had invested real money into them. To get the most accurate picture of how you would do, it is important to track everything including fees, limit price and exit price. Take this seriously and use it as a tool to help you learn and prepare for the real thing.
There are a few specific things to consider when you get started. Continue reading
Like so many things, advances in the Internet and in technology have made buying penny stocks online accessible for anyone from the savvy stock investor to the casual day trader. You no longer need the education or attire of a stock trading professional now that you can buy penny stocks or any stocks from the comfort of your own home.
While it is great that this market has opened up to a wider range of people it is important to know that buying and selling penny stocks can be a risky business. You need to prepare and arm yourself with knowledge in this field if you want to increase your chances of success. Sure there is money in this market, but keep in mind the other side of this. Many people lose a lot of money on penny stocks, but with the right tools and knowledge you can decrease your risk and increase your chances for success.
Day trading software and stock newsletters are among the tools available, but it can be difficult to know where to begin. Continue reading