Trading Penny Stocks
The trading of penny stocks has sky-rocketed during the last decade and a half. The day trade bible, the Over-the-Counter Bulletin Board (OTCBB) traded just over 3 billion shares in 1994. That was about 4.5% of the number of stocks traded on NASDAQ and the NYSE. By 2003, though, the OTCBB numbers had gone up a total of 8900%. In less than a decade their volume had increased to 267.4 billion shares. That was an increase that amounted to 63% when compared to NASDAQ and 78% of the NYSE. Can you believe it?
Rules the Experts Live By
Experts in the field of day trading penny stocks have put together a list of 50 of the best rules for day traders that were popular sometime during the 20th century and still retain their value today. The following list only includes ten of their rules in the interest of the length of the article, but they will be enough to give you some ideas.
Have a trading plan and stick to it. Only reinvest half of the profits you make; save the rest. Plan time to study the market, and stick to it. Develop more patience, perseverance, determination, and rational action in order to succeed. Losses teach. Take advantage of yours to learn more about the market. Get out of a trade if it drops 20% from your peak profit point. Achieve more by continually setting your goals higher. Stay positive, no matter what the loss. Be willing to buy high and sell low if necessary. Believe in you! It takes confidence to win in the day trading game.
Day trading is a risky venture, and penny stocks make it even more so. If you think you’re up to the challenge, you might give day trading penny stocks a try. If it doesn’t work out, you can always cut your losses and get out. You may just find that you have a knack for it, though, which could end up netting you some big profits.
