As an office worker in modern America, it is nice to find a place where the chair is comfy and you have two monitors. A decent salary, some job security and a 401k are nice too. But what you have to be aware of is that this is not all there is. You want financial freedom and the ability to control your own time. You want to look at all the angles.
The commute is not fun. Sitting in a gray cubicle, filling out spreadsheets is soul-crushingly boring. There is not enough return in the world for this and even your income is pretty low. Face it, your job is not fun. So you need to look into alternatives. You need to figure out if penny stocks is the answer.
Don’t get it twisted. You need to put in major work to get good at day trading penny stocks. You need to be able to find hot stocks, spot trends quickly and be able to capitalize on them without hurting your profits. You need to be able to manage risk appropriately. That is how you get out of the way of bad trades. But learning how to day trade is not an easy task.
First off, stay away from penny stock promoters. You need to learn how to make sense of the market on your own terms. You need to develop the skills to follow trends and hunt for volatility without getting caught up in some wild pump and dump scheme. Do not think of penny stocks as lotto tickets, with the dream of hitting it big by buying the next Facebook at $1.00 per share.
Look for small wins. When it comes to penny stocks, making a 20% profit in a couple days is a big win and you should walk away from the table. Don’t hang on for a great and mighty 1,000%. The likelihood is that you are going to lose a lot of money and not make out all right.
Don’t listen to management. They have a vested interest in the operation and they are not going to tell you all you need to know. You need to learn how to trust your own instincts in this game. When a big market mover buys up a lot of a cheap stock, they will make it their business to talk up the stock and try to pump up its value. Then it will sell all of its stock in a quick dump, taking a ton of profits and watching all the little investors take a bath. You need to know how to avoid those schemes.
Find a day trading education site that will allow you to learn as you go. You need good online classes with veteran instructors that will teach you how to spot trends and manage your risk. A paper trading platform where you can trade virtual currency is a great place to start as well. You need to be able to practice without hurting your cash reserves.
Take the time to learn how to trade penny stocks because you can’t treat it like a get rich quick scheme. You will be profitable if you put in the time and the work.
Read More :Tags: Investing , Penny Stocks