Day Trading Penny Stocks - How to Invest in Penny Stocks
Day trading penny stocks can be risky business, as with any other venture that involves speculating in the stock market. Penny stocks are a margin above the rest, however, since they are at a higher risk for limited liquidity, limited or absent financial reporting, and fraud.
Penny stocks are most closely associated with pump and dump schemes, where stocks are brought in bulk by stock speculators and a massive campaign to promote the stock starts, jacking up the price of the stock. Then the speculators exit, leaving investors with worthless shares and their mouths agape.
Although not all penny stock companies are fraudulent, careful research must be done if you are planning to invest in penny stocks. Many penny stock companies are listed in list sheets like OTCBB and Pink sheets which have low listing requirements.
Be wary of companies that are lacking in financial history information, which you need in order to make an accurate assessment on the penny stock that you are interested in.
A consolation is that in day trading penny stocks you only get to hold on to your stocks for a limited amount of time. As soon as you ride the increasing wave of demand, sell your stocks and rake in the profits, you are now ready to go to bed and prepare for another day of trading.
And the analysis needed to day trade in penny stocks is nowhere near the complexity of the analysis needed to trade in stocks for longer investments.
There are now also penny stock software that can help you monitor your penny stocks so you don't need to sit in front of the computer monitor all day.
Alternatively, Michael Cohen has a penny stock newsletter that provides weekly penny stock picks of the hottest stock picks in the market. These are selected by experienced traders, though there are no guarantee of profit, it can provide a good starting point to place your trade especially if you are new to investing in penny stocks.
Related Tags: doubling stocks review, day trading penny stocks, michael cohen doublingstocks, doubling stocks scam, how to invest in penny stocks
If you want winning and hot penny stock picks that are delivered to you every week, i recommend Michael Cohen Doubling Stocks Newsletter. Read my Doubling Stocks review and discover how it can help you earn money on autopilot.
Your Article Search Directory : Find in ArticlesRecent articles in this category:
- Market Factors Affecting Day Trading
Day trading of financial instruments such as stocks, futures and forex currencies demands quick res - Forex Day Trading and Scalping Secrets
Most new Forex traders are attracted to day trading and scalping, as it offers small regular gains - Be the Knight Who Makes Only Profits in the Stock Market
Online Stock Trading Tips-Those large screens in NYSE show the live data of the rise and fall of mo - Best Bot Software for Penny Stocks - Automated Currency Trading Software
Bot software for penny stocks is simply a software that helps us trade on penny stocks online. The - Online Trading: Choosing a Broker
Depending on the type of investing that you plan to do, you may need to hire a broker to handle you - Online Trading: Different Types of Bonds
Investing in bonds is very safe, and the returns are usually very good. There are four basic types - Online Trading: About Online Trading
The invention of the Internet has brought about many changes in the way that we conduct our lives a - Online Stock Trading Strategies: Plan Your Profit
Making strategies is essential, specially in the field of business. If you are good at it then thi - Online Trading Strategies and Its Effects in the Trading Market
Doing any work without any strategies would not be perfect. Even though you complete it the result - Learn When is the Best Time to Trade Via Day Trading Community
Will you be a smooth trader enough to ensure good returns on your investment until and unless you h
Most viewed articles in this category:
- Introduction to Day Trading
Day trading is the practice of buying and then selling a stock all within a single day of market act - Online Trading Community & a Surplus in Your Profits
Online Trading Community-Stories of people who have lost their money in various investments are qui - Cheaper Online Trading Strategies Can Make You Rich
After all, it is only human thing to want more always. Therefore, there is nothing wrong if you are - Online Trading Comparison - Help Traders Analyse Stock Trends
Online trading involves buying and selling of stocks online. Online trading requires precision, inf - Join Stock Trading Community & Get Tips From Experienced Traders
Most of the newbie traders started up with online stock trading businesses get into fix in which wa - Key to the Online Trading Secrets
The technology of Internet has helped every online business to perform better and among differen - Stock Traders Can Learn From Online Trading Comparison
Many people nowadays are planning to become a part of online trading and earn money but the busines - Joining a Stock Community Can be Beneficial
Becoming a part of any kind of a community helps a person to interact with people of his/her kin - Are You Wondering How to Start Investing in a Stock Market?
Are you wondering how to start investing in a stock market? Well if so this article will help you u - Liquidity
Daily Market Commentary for September 12, 2008 from Millennium-Traders.ComWashington Mutual maintai