Staying Home and Trading Penny Stocks
The dream for many millennials and even a lot of Gen Xers these days is to be able to kill their commute. The commute across the country is an average of one hour, which really eats into daily time. That means less time for watching shows on Netflix, less time reading good books, less time to spend with family and friends. The question is always about how to do it without killing your salary and earning power. And that lies in one’s ability to trade penny stocks.
Trading penny stocks is not the first thing you may think of when you are talking about earning a decent living and ending your drudgery at the office. The Wolf Of Wall Street was about penny stocks, wasn’t it? Didn’t Jordan Belfort’s Hollywood-worthy tale portray the inevitable end of a trader that puts it all in penny stocks? Well, yes, to an extent, but the most important lesson to learn from that movie is to pull back on the scope of trading penny stocks. The Wolf built an entire company on the backs of penny stocks.
What you can do is build a nice little income on the right penny stocks if you learn how to trade them effectively and within the correct risk profile. Day trading might seem like a super risky proposition, but if you learn the strategies and techniques from a well known day trading education site, you can do all right. It just takes time, discipline and the willingness to take risks and manage your risk.
Risk management is such an important part of day trading. But this article will get to that part. For now, let’s talk about what penny stocks mean when day traders talk about the, That is not necessarily stocks that cost less than a dollar. It usually means stocks that are priced between $2-
$10 per share. The is some amount of risk there, but if it is handled properly and you can find the right stocks to pick 60% of the time, you can run a profitable one-person operation.
That is another key. Keep your overhead low, keep your spending under control and you can come out ahead in almost any endeavor. The same is true of trading penny stocks. You want to be able to keep most of the money that you make, so you are in a position to take responsible, well-reasoned risks at the right time.
When you research penny stocks, you can read the same daily watch lists day after day or you can look for an edge. You can teach yourself the technical indicators that you need to know, so that you can find the penny stocks hidden in plain sight. Those stocks are out there. Sometime they are on less well known exchanges, where the financial disclosure is not quite as robust as the New York Stock Exchange, you need to know that and know how to handle that.
The risk of being caught up in a pump and dump scheme is very real. So you need to be on the lookout for hucksters and hawkers that are talking up stocks because they own them and they have a vested interest in seeing the price rise. Those tend to be OTC penny stocks or over the counter penny stocks. They are what you want to avoid when you are a novice on the market.
When you are a novice you want to make sure you find the best day trading education possible, so you don’t get exposed as a mark when you first enter the market. Get smart before you trade, not after you lose your savings!