Can you really make money trading Penny Stocks?
This is commonly asked questions mainly buy new Penny Stocks Traders, to answer your question absolutely you can make money. Actually there are allot of Penny Stocks Investors and Traders that make a living just trading, they have managed to get so successful at finding up to date stock information. A advanced Penny Stocks trader makes money buy doing lots and lots of research, from checking OTC Markets, to Yahoo Finance, to even calling the actual Investor Relations or Transfer Agent appointed for the company they are thinking about buying shares into.
Making money with Penny Stocks is risky just like any other high yield return investment, you just have to gain knowledge and research what you are buying. You also need the proper trading tools just like a carpenter needs his hammer and nails. The biggest mistake most stock traders make is investing to little money and expecting huge returns.
Keep in mind whenever you are learning how to trade stocks, the number one principle and hardest to learn is invest a large amount of money and profit with a small amount of money. When you apply this simple principle you have the ability to be much more success full as a penny stocks day trader.
For example when you invest $1,000 into a penny stocks at 1 cent and sell your portion at 1.25 cents you just made a $250 profit in one trade. Most traders want to invest $1,000 at 1 cent and profit at 2 cents which would be a $1,000 profit. The problem with this second method is most stocks normally do not make a large movement like that to deliver that type of profit.
So as an advanced trader we have to adjust accordingly, and look for small profits but often trades. We want to look for 4 $250 profit trades, versus 1 $1,000 profit trade.
A few things to memorize as a top penny stocks trader:
Always know the top 10 penny stocks of the week.
Have a penny stocks watch list with your best picks you think you can make the most money on.
Learn penny stocks charts and indicators to help predict and sometimes pinpoint which direction the stock is heading.
Always observe any knowledge available or offered to learn about penny stocks and day trading penny stocks.
Stay tuned for more info to come.