Ten Penny Stock Day Trading Tips

Do You Know These 10 Penny Stock Day Trading Tips?

When I started trading years and years ago…… there was no internet.  I couldn’’t Google for information, or search for other traders.

There was no reliable source about stocks – other than the Wall Street Journal…… and trying to talk to a broker…… that was a non-starter…… he ignored me because my account was too small.

Don’’t you just love working with greedy penny stock brokers!?!

So what was my option?

To educate myself, I’’d ditch school and go to the public library to do research.

Not what you’’d expect from a kid ditching school -– and to this day, I know I learned more from my frequent trips to the library than I ever would have in school!

Anyway, some of the most useful advice came from other traders who would lay out their tips for success.  I read about them all in the books at the library.

Then I started my real experience…… trading stocks on my own!

Now I’’m older, wiser, experienced…… and we have the internet for education.  I know many new traders are looking for tips and tricks……

Follow These 10 Penny Stock Day Trading Tips To Avoid Mistakes

So here are my thoughts on the subject……

Successful penny stock traders are good at learning from others…… learn from the mistakes of others and you’’ll come out ahead.

Here are 10 big mistakes other traders make and along with them…… a handful of penny stock day trading tips:

Mistake 1: Not Having A Predefined Strategy

Don’’t mistake the quick moving nature of day trading penny stocks with a lack of preparation or planning. Every successful day trader has a predefined strategy for operating under various market conditions.

Without a plan, trading is less of a skill and more of a guessing game. “”Do I keep holding or trade now?”” ““When is the right time to make my move?”” With a plan, you can make educated statements like, “”XYZ stock just reached my $7.00 target, it’s time to sell”” or “ABC’’s stock value is down 27%, it’’s time to cut my losses and move on.””

For most, it takes time to develop an effective predefined plan or exit strategy. Once it’s established though, it’’s the guiding force behind every trade.

Mistake 2: Letting Emotions Win

This is a big problem with new penny stock traders.

Emotions are the enemy of a successful penny stock day trader. Whether it i’s anticipation, fear, stress, or excitement, an emotional trader makes irrational moves based on intuition -– instead of proven strategy.

Again, the best way to ensure emotions don’t dictate your trades is to establish a solid strategy that you follow under all circumstances.

Mistake 3: Attempting to Make Up for Losses

Losses hit everyone…… no matter how experienced you are.

The name of the recovery game is patience.

One of the most dangerous things you can do is try to recoup losses by doubling up on other penny stocks. As soon as you strike out on a stock, it has to be left in the past. If you let it have an emotional effect on your day, you’’ll quickly find yourself making foolish trades in an attempt to come out on top.

Follow your plan.  Stay on track and ignore past losses, you’ll eventually find yourself in the black again.

Mistake 4: Chasing Sales Pitches

We all get them -– those annoying emails claiming some analyst has found the next billion dollar success story.

The best thing to do with these emails is click the “”delete”” button.

The majority of these emails are sent by scammers or promoters being paid to highlight the penny stock.  If you don’t believe me, read my free report about penny stock scams exposed!

Don’’t be caught on the wrong side of these trades.

Mistake 5: Thinking Trading Penny Stocks Is Easy

Is there money to be had in penny stock day trading?

YES!

Is it as easy as clicking buy and sell?

NO -– Not even close!

Becoming a successful penny stock trader requires careful preparation, research, and planning.  As the popular phrase says, ““To be the best, you’’ve got to learn from the best.”” Day trading penny stocks can be lucrative, but it’s not as simple as some would have you think. It requires effort.

That means learning, studying what works, and what doesn’t…… and most of all, following a strategy.

OK, that’’s the first five mistakes penny stock traders make…… here are the next five.  Make sure you study these and understand the penny stock day trading tips we’’re outlining.

Mistake 6: Risking What You Can’t Afford to Lose

This mistake is another big one for new traders.

Don’’t risk what you can’t afford to lose.

I don’’t care if you’re investing in a blue-chip stock, mutual fund, piece of real estate, or penny stock, there is inherent risk involved.

If you can’’t afford to lose it, it’’s best not to trade or invest.

Mistake 7: Trading After Hours

After hours trading is risky.

The market is thin, and the vultures start to circle.

This is one of those situations where…… just because you can do it, doesn’’t mean you should.

Focus on trading when the market is open and active. After hours, the decline in volume and activity leaves prices open to unpredictable fluctuations. And puts your trades at big risk!

Mistake 8: Small Order Sizes

If you’’re going to trade…… trade!

The low-price nature of penny stocks means you need to trade large quantities to garner any real returns.

For example, take a stock that starts at $1.00 and grows to $3.00. That’’s a 200% ROI, but it’’s worthless if you only purchased 10 shares.

However, if you bought a large quantity -– say 1,000 shares -– you made $2,000. That’’s a nice day trade.

Mistake 9: Trading with Software

I’’ve seen the ads…… and I know you have too……

Penny stock trading software is a crock of crap.

Look, some traders use it to identify trades.  And it can work for some traders.  But I’’d never trust my money to a computer program.  If something goes wrong, you’’re on the hook…… and think about it…… if the software really worked, why not keep it to yourself and become a billionaire!

Now we’’re onto the final mistake penny stock traders make.

Mistake 10: Not Taking Advice

If you want to really learn to trade penny stocks well, find a successful penny stock day trader and soak up everything you can from that person.

Don’’t try to learn everything on your own.  Learn.  Study.  Trade.  Get some experience.  Who knows…… you might find a proven strategy and technique to dominate the markets.

Follow these penny stock day trading tips and learn from the mistakes above… …it will make you a better more successful trader in the long run!

So let’’s shift gears for a moment……

What about your Penny Stock Day Trading Tips?

I know I’’m not alone learning about the tips and tricks trading penny stocks.

What tips and tricks do you have?

Reply to the email…… or better yet, if you’’re reading this on the blog, leave a comment and I’’ll read every post!  I won’’t be able to respond to them all, but I’’ll try!

I look forward to your comments!

Good trading…

Brian Kent

Note:  Brian Kent has been trading the markets for more than two decades and now writes and edits for PennyStockResearch.com.  You can sign up for the penny stock research newsletter a trusted source for the truth about penny stocks! Sign up today and get a free research report – http://pennystockresearch.com/free-reports/.

Tags: day trading, Penny stock trading software, Trade Penny Stocks, trading penny stocks

Category: Penny Stock Tips