| The stock market is all about making money. There | | | | term investing. First off, it requires far more research |
| are tons of ways to do it, from short sells to call | | | | and secondly it is much less of an exact science. You |
| options. Many of these ways can seem a bit on the | | | | can look at a company's financials and other factors |
| advanced side, and are really only viable plays | | | | over five years and if what you see looks good you |
| because of the interest and trading volume on many | | | | can be fairly confident the stock will go up in value, |
| stocks. | | | | although you may not know when or how much. |
| Penny stocks are a bit different. You might say | | | | Day trading is much more hit-and-miss, and involves |
| they're "old school". With lower trading volumes the | | | | following short term trends in stock price. Done well |
| main way you make money is by buying low and | | | | though, day trading can build a small investment into |
| selling high. Even so, there are still two different | | | | small fortune and a small fortune into a big one five |
| strategies you can use: Long term investing, and day | | | | times faster or more than standard value |
| trading penny stock. | | | | investments. When I say "or more" I really mean "a |
| Depending on your particular level of expertise, risk | | | | lot more" but I also want to counsel caution because |
| tolerance and amount of time you are willing to | | | | day trading is a riskier business and can lose money |
| spend researching stocks, one may be more | | | | quickly as well. |
| appealing to you than the other. Both are viable ways | | | | The idea in day trading is to figure out how short |
| to make money. | | | | term news will affect stock prices in the short term. |
| Long term investing is fairly straightforward. Basically | | | | Deals with other companies, layoffs, all sorts of |
| you want to find a company that you think is going | | | | things can have sharp affects on stock prices in very |
| to increase in value over the long term and buy | | | | short time frames and day traders seek to capitalize |
| shares (which represent part ownership) in that | | | | on those short term changes. |
| company. You will have to do some research up | | | | If a company isn't really that financially solid and their |
| front to do this right (or have paid someone else to | | | | stock currently goes for $0.88 and you had a time |
| do this research for you) but what you are looking | | | | machine and could see next year their stock was |
| for is a company that is probably very young and | | | | worth $0.89 you would still have to buy so much |
| has a solid business plan and a good management | | | | stock just to overcome the stock trading |
| team. | | | | commissions the company would absolutely not be a |
| You want to see positive cash flow into the | | | | worthwhile investment. |
| company and for what history there is the | | | | But if there was some brief excitement because the |
| company's profits should be growing year to year, | | | | company got a contract with Apple and Apple's very |
| not shrinking or holding steady. When I say do this | | | | trendy right now, that might have popped the stock |
| research yourself or pay someone to do it for you, I | | | | price up to $0.96 in the span of a few days, before |
| really mean that. Free stock tips, especially on penny | | | | the stock slowly dropped down to $0.89 again. |
| stocks, are almost always a scamster trying to drive | | | | Buying right before those two days hit is a day |
| the price of his worthless stock up so he can dump it | | | | trader's ultimate goal, and it can be done. Just not |
| and leave his marks holding the bag. | | | | easily, or all the time. |
| Day Trading penny stock is a bit different than long | | | | |