| Day trading penny stocks can be a very exiting and | | | | these stocks, not investing in them. If you have any |
| very profitable way of making money in the stock | | | | thoughts of buying a stock for.01 cent and watching |
| market. This is because of the high volatility of these | | | | it soar to $20, forget it. The thing to remember is |
| stocks. Unlike traditional blue chip stocks which are | | | | that 99.9% of these companies are worthless, that's |
| lucky to get a 10% gain over the course of a year, it | | | | why they're so cheap. That being said, as long as |
| is not unusual for penny stocks to double or even | | | | you are smart, not afraid of a little risk, and most |
| triple over the course of one or two days. | | | | importantly don't get too greedy, you can make a lot |
| The flip side to that volatility is that they can also go | | | | of money day trading penny stocks. |
| down very sharply and quickly, this is why you should | | | | If you are new to trading take your time, learn as |
| never put more in than you are willing to lose. Losses | | | | much as you can before putting real money into it. I |
| can be minimized to a certain extent with the use of | | | | would suggest paper trading for at least a month or |
| stop orders.I learned this lesson the hard way when I | | | | two once you think you are ready. Paper trading isn't |
| failed to place a stop on my first trade with a penny | | | | always accurate but it can give you some idea of |
| stock and lost 60% of my investment. | | | | how well you understand everything. |
| A warning though, never forget that you are trading | | | | |