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Mark Olthouse: Where to Find Tips For Day Trading Penny Stocks

Article by Mark Olthouse Mark Olthouse

Mark Olthouse: Where to Find Tips For Day Trading Penny Stocks

Where to Find Tips For Day Trading Penny StocksWhile there are many places to find day trading penny stocks tips, these are the most active day trading penny stocks trading boards on the Internet. If there are day trading penny stocks tips to be found, they can be found on these boards.Investors Hub Day Trading Penny Stocks Tip Boards• BB’s Stock Haven• MOMO’S BREAKOUT BOARD• The Hunt for the Next 5-10 Bagger• Momentum Players• Lion’s Den• OTC Intraday AlertsSilicon Investor Day Trading Penny Stocks Tip Board

Getting into the stock market, especially if you’re trying to learn about day trading penny stocks without losing your shirt, is a tricky business. Of course it can be done, but there are professional con men who make millions tricking the average stock investor out of his or her money.The point of understanding this fact is to be very wary and do your research before you leap into trading penny stocks. They are some of the most volatile stocks out there. The more volatility a stock has, the greater both the risk and potential return.You should never trade stocks with money you cannot afford to lose, but penny stocks can offer the opportunity to make double, triple, and quadruple your initial investment in profit.Practice Day Trading with Penny Stock PortfoliosIt may take time to learn the process of investing as well as how to protect your investment once it is made. There are some stock trading accounts that allow you to trade stocks with online currency. Many mock portfolio websites allow you access to all the tools that an investor using real money would have access to, and allow you to continue your trades until you are consistently profitable. The real market changes are recorded so that the investor can see how their gains and losses over time. One of the most popular practice day trading websites where you can also trade penny stocks, is Wall Street Survivor , which lets you open a free account and also offer real, monetary rewards for the best performing portfolios that its members create.Constant Vigilance Is Vital for Penny Stock TradingKeeping an eye on penny stocks is very demanding. This is not the type of investment to let ride for a year, or even a whole day. This is the type of investment to make and watch for as briefly as 5 minutes before the money is made or lost and it is time to get out of the position. One penny stock day trading strategy is done on the basis that a start up company is about to have a burst upward in their stock price. The information that is let out by a press releases may have validity, or it may not. When dealing with penny stock companies, any press releases or current events may cause a sharp increase or decrease in the share price on sheer speculation.Penny Stock Company ResearchWhile there are plenty of investing scams to be concerned about, there are certainly legitimate start-up companies that need investors. This is true of any business in the early stages. One of the most important things to do before investing in any company is to do research on the company owner, business location and anyone else who is involved in the business. Don’t just blindly follow penny stock tips – check out their background. See where they came from and what their resumes look like. All of these things will help to make the prospects of success more attainable. Search the names of the owners. See if there is any bad press about them. Look up old press releases about the company. See if they followed through with what they said they would do in the past. These are ways to find out how legitimate the company is. Calling them on their company phone and getting a live person who answers using the company name is a good start.Companies that were once trading at amounts higher than .00 (in other words, were once not penny stocks), can also be traded, as long as you have done your due diligence and researched why and how the company has fallen from grace. The majority of penny stocks eventually fall to , so you should be careful you are not overlooking a key drawback to a company if you think you would be willing to invest in it. Perhaps the company’s true liquidation value is near zero, or the prospects for the industry are bleak.It is definitely possible to make money trading penny stocks, but the most successful long term penny stock traders are those who have practiced before they began committing real money to their trading decisions, did the research, and stay vigilant while they hold their positions.The Game PlanWhat is it? That’s simple! We’re here to learn how to make money buyingand selling low?price stocks. You’ll learn how to recognize these stocksand you’ll do your own analysis of each one individually. Yes, you’ll learnto make your own decisions.You won’t be having any telephone conversations with fast talking stockbrokers. You won’t be buying any Blue?Chip Wall Street darling stocks.You’re going to be spending your time searching out solid small companystocks that sell for five bucks or less per share.About 50% of the stocks that I buy cost less than .50 per share whileabout 20% fall into the .50 to .00 range, and the other 30% are inthe .00 to .00 range. Stocks in this price range have tremendouspotential to move to the upside and make you some serious money.And like all stocks, they have the potential to move to the basement andleave you with a loss. You’ll learn how to limit that possibility and protectyourself with special buy?sell instructions placed at the time you order.There’s no way to totally eliminate risk .. other than doing nothing.The stocks you’ll be looking for will be low?price stocks, temporarily out offavor with the market in general, and specifically out of favor with activeinvestors. These will be fundamentally sound companies that have shownthemselves to be serious contenders in their specific field of business.These stocks will be trading at, near, or below, their (52 week low) tradingranges. You’ll be buying these specific stocks when no one else wantsthem. These will be stocks that tend to cycle up and down once, twice, ormaybe even three or more times a year, off that wonderful 52 week low.When you buy these stocks you might decide to dig in your heels andhold on to it for a month, 90 days, six months, or maybe even a full year.You’ll more than likely own a 1000, 5000, 10,000, or even 20,000 sharesor more of a particular stock.You won’t be losing a whole lot of sleep, because you will have done allof your homework .. before the purchase.

Mark Olthouse

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Mark Olthouse: Where to Find Tips For Day Trading Penny Stocks