If you have been considering trading stocks or have extra income you can afford to invest, it is highly recommended that you try day trading.
With penny stock trading, day traders make lots of money every single day and the number of full time day traders making money online is phenomenal.
Penny Stocks refer to stocks that are usually traded at less than $ 5-6.
They usually don't meet the high requirements to be listed in the NASDAQ or NYSE.
Most of the traded stocks are from small companies who are seeking capital to expand, grow and hopefully get listed in the NASDAQ or NYSE where more capital is available.
Day trading on the other hand comes into play where stocks are bought and sold within the same day.
The dynamic and volatile nature of penny stocks make them a good target for day trading as they can shift upwards by very huge margins.
Percentage gains on of up to 1000% have been recorded.
And you can only imagine how good the lucky traders who cash in on such high rises feel.
If you are into stock trading and investment, or just want to make extra money from the comfort of your home, then day trading with penny stocks is right for you.
The benefits of day trading with penny stocks are as follows: • The potential for quick gains, especially when you go in early.
• You can start trading with very small amounts,as low as $100 and make a profit immediately, This can enable you as a prospective investor to start seeing profit quickly which from experience I must say, is very motivating.
• You get the opportunity to build up massive investments from a small initial investment if you are the kind that ploughs back profits.
• Ability to transact from your computer at home quickly and without wasting time, and also without the hustles of excruciating paper work.
As with all other investments venture or stock trading the profit is directly proportional to the level of risk taken.
The question that begs to be answered is how you do you profit from day trading with penny stocks? With any form of stock trading comes the need for reliable investment advice or backing of a reliable brokerage firm.
A quick web research will reveal lots of players in this category.
Before you make an investment it is highly recommended that you seek the expert opinion of an investment adviser or brokerage firm.
Most of these firms conduct or specialize in conducting first hand research to determine potent investments and advise you accordingly.
It is also important to keep in mind that any investment decision is a risk, whereas there are very high returns to be made quickly from penny stocks, they are still just that, stocks, and with all stocks, risk of loss is present.
So invest only in funds you can afford to lose.
Scour the web for good brokerage firms that offer top notch stock advice and have a good record with their stock picks.
There is one firm that employs advanced algorithms to identify stocks that will make you profit called the Penny Stock Prophet and you get free stock picks from them delivered to your email.