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The beautiful thing about trading penny stocks is that the analysis required to select which penny stock to day trade is not as complicated as the analysis needed to select stocks for long-term investment. However, you should watch your trades hourly instead of monthly. What Is A Penny Stock? Penny stocks are stocks that normally trade for very low amounts. Penny stocks exhibit the greatest daily percentage increases of any other stockson the market... but they also carry the most potential percentage loss. Penny stocks are infamous for empowering you to make either huge gains or losses overnight. In order to maximize the potential from these high percentage increases, you need to day trade these penny stocks instead of investing long-term. This way you leverage the large daily percentage increases you only see in the area of penny stocks. Then What is Day Trading? Day trading is buying and selling shares of a stock on the same day. By day trading, you don't run the risk of watching the stock price go down over the long term. Many people view this process as potentially risky. However it is only risky if you don't use the right tools or exercise the appropriate knowledge. With the correct tools and the right knowledge, you greatly minimize the risk. Figuring out how to make money from penny stocks requires an analytical mind. The investment crowd tries to scare people away from penny stocks so they can be the ones making most of the money on penny stocks. This is because they know many people have weak hands and can be easily shaken off an investment with loss. Again, persistence is a key to your success with trading stocks in this manner. Don't let the big dogs scare you, and don't panic when you have a little loss. Learn and move forward. So How Do You Learn Penny Stocks? The more knowledge and experience you gain, the less risk you incur. If a person who has never gone surfing before was dropped on top of a wave, can you imagine how quickly he would taste salt water? But, if he spent time in the shallows learning and improving, then he might glide along with the wave with his next opportunity. The same thing applies to trading penny stocks. Taking the time to read and practice will greatly minimize the risks. Remember you buy and sell shares on the same day -- occasionally within hours -- and lock in your profits. You don't even have to be concerned with your stocks overnight because you have already sold them and made your money. And it really can be enjoyable.
Charlotte Simms is a teacher and web technology specialist. Now as an independent entrepreneur, she hopes to bring useful, empowering web technology into the lives of people who feel intimidated by things such as blogging, the Internet and trading stocks online. Join her friend's free Day Trading Penny Stock blog today: Day Trading Penny Stocks
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==== ==== Please check out Trading Pro Edge System for great tips on Stock Market Trading for Profit. www.tradingproedgsystem.com ==== ====