There is an art to how to trade penny stocks. It requires hours of discipline to reach mastery of that art, with time spent studying stock trends, charts and spreadsheets. It also requires a significant amount of risk management. That is also where the discipline comes in.
Penny stocks need to be traded in great volume if you want to make a profit. And you need to find the right stocks for big percentage growth. You can spend all your time fumbling around as a newbie in penny stocks, with a small account and no experience. Or you can take the time to learn the ins and outs.
There are programs out there online that allow you to acquire the skills necessary to make a living trading penny stocks. It is not a get rich quick scheme. You actually need to know your stuff. If you really want to know the truth, only about 10% of traders make a profit in penny stocks. The other 90% get fleeced by the professional traders out there in the market. The only way to make consistent money and not lose your shirt is to learn strategies and stick to them.
You can begin by searching for Warrior Trading on Facebook. Warrior Trading is a day trading education community that offers classes, a chat room and simulated trading that can help you get a handle on penny stocks.
What Are Penny Stocks?
Penny stocks are stocks that trade for under $5.00 per share. Years ago, the name penny stocks might have been more accurate, meaning only stocks trading under $1.00, but times have changed. These companies, especially in the biotech or internet industry, tend to be very volatile and prone to big spikes and drops in value. That is why being a penny stock investor is so difficult. Holding penny stocks for long periods of time is not conducive to wealth generation.
Day trading penny stocks, however, can be a way to make decent profits, if you can learn the strategies and implement them consistently and correctly. But there a few rules to the penny stock world:
- Stay away from over-the-counter and pink sheet listed stocks. They have fewer regulations and therefore more risk.
- Don’t fall for the marketing. You will see certain penny stocks called out with flashy slogans and catchy copywriting. Stay away.
- As mentioned before, trade with volume. It is the only way you can get a significant return on penny stocks.
Do you feel ready to try your luck with penny stocks? Seek out Warrior Trading today and start your education. You never know how much profit that learning can get for you.