Day Trading Penny Stock Tips

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Day Trading Penny Stock Tips

July 28th, 2010 · Dallas TX, USA -

Trading stocks in a single day refers to day trading. Traders who actively involve themselves in day trading are called the “day traders.”

Every new investor who begins trading is advised to buy those stocks that are from well-known companies to minimize their risk. They should take proper advice and should have self-control and understand the market thoroughly. As there are many risks involved in every stock market transaction, new traders should be careful in trading until they learn the tricks of the market. Once they acquire confidence then they can increase their portfolio a little more, and try day trading more stocks.

In case you are new to day trading, then it is important to understand the activities of a day trader and know how different they are from a trend trader or swing trader. Theoretically, day trading means a practice of buying and selling shares, within the end of day. This means that a day trader would buy stocks with the idea of selling them as soon as possible to make profit. Although the day trader buys different kinds of stocks throughout the day, their goal is to sell them all by the end of the day, even if it incurs a loss.

To become a successful day trader, you should know how to pick stocks during the day that are different from the longer-term swing trades and trend trades and have to understand the strategies of day trading that would stop you from buying unsellable stocks at the end of the day. All day traders have to trade in the direction of the current trend, and buy those stocks that are at the beginning of the trend, and sell them as soon as they notice the growth trend is beginning to weaken.

It is risky to trade as per the chart activity; but many investors pick stocks based on insider’s information, stock market news, and rumors. Every investor should acquire self-confidence in making the trade on a split second’s notice. This is not suitable for new traders as it is very dicey.

Penny Stocks are slightly different from other stocks and are traded below $5. If you are planning to invest in penny stocks then do subscribe to free penny stock newsletter offered by Penny Stock Pick Alert. We keep track of those penny stocks which are poised to make huge gains.

Tags: Day Trading · Penny Stocks