Day Trading Penny Stocks

So you want to day trade? Do you know what day trading is? Do you know what penny stocks are?

If after knowing what all of those are, you still want to do it, you must know that you are taking some serious risk. The rewards are great, the rush is amazing, but you have to be prepared. You are either stupid or confident, hopefully confident in yourself. Confident that you know what you have to do, willing to be patient and wait.

You cannot day trade any penny stock, you cannot day trade the same penny stock everyday or else you must be prepared to get killed. There are certain days when a stock makes a move which you must be willing to trade it that day. If you catch it early enough, you can buy it and go with the momentum on the upside.

Do not just buy it, sell it, buy it, sell it, you'll get chopped up and there will be nothing left. You have to be very patient, careful, pick your entries and exits. This is much different than if you were going to day trade a regular stock, you can trade it a multitude of ways, but you cannot really scalp penny stocks. You have to hold it for more of a move. Every time you get in, you must be willing to lose money.

When you go day trading penny stocks, it is day trading, but it's not the same as any other type of stock. There is a special way you have to do it, there is a special method, it is a unique beast. You may say, okay, I am willing to lose 5 percent to make 30 percent. Something like that is more understandable, you can have a plan for every entry. Day Trading Penny stocks are very risky, but the percentage rewards are huge. You have to find a method which you feel is believable.

Lastly, don't think you will be able to day trade it every day, every day you day trade is different than the next. Tomorrow won't be the same as today, and neither will the day after. What this means is, not just the same stock, but penny stocks as a whole there are many days when absolutely NOTHING happens in the market. You have nothing to do, so you must sit on your hands and be patient, wait. The turtle wins the race.

Milton Matthews is a trader who spent his free time writing a few articles for http://pennystockfinds.com/ hoping that people will not make some of the same mistakes he has made. For some information on day trading penny stocks, please see his website http://pennystockfinds.com/day-trading-penny-stocks.php.