How To Successfully Start Trading Penny Stocks You Can Make Money Trading Penny Stocks!

Investing and trading are completely different things. If you plan to invest and hold for more than a few days, don't focus too much on a particular security. $10,000 seems high, but if we're talking about investing in individual stocks, you shouldn't have any money in individual stocks until you have $250,000 in investment capital. This is what most conservative wealth managers will tell you. To diversify, you need to be able to buy at least 15 shares (though 25 is better). If he uses $10,000 to buy 15 shares, he can only buy $666 per share. That's not enough. You need at least 300–500 shares of each stock. The reason is that some of the 15 stocks will be winners, some will break even, and some will be losers. If there are 5–6 winners, 3–4 break-evens, and 6-7 losers (which is probably the case), a small position of $666 (perhaps 10–20 shares) will result in a small profit. Become. That means you should focus on stocks with lower stock prices, but mark my words. Investing in stocks that cost less than $5 is complete bullshit. If you have a profitable trading method, you can make money with penny stocks like this, but most stocks under $5 are either poorly managed or losing money. , on the verge of bankruptcy, or all of the above. If you don't want to lose all your money in one year, you should focus on stocks above $20 that are profitable and not tied to highly volatile sectors such as oil and gas. Generally speaking, stocks above $20 aren't valued very highly unless they have profits and a solid management team.

If you're interested in becoming an "investor" because you can't afford to pay $250,000, you should instead invest your money in an index fund and earn market returns. SPY is suitable for that. Alternatively, you can open an account with Vanguard (Vanguard's S&P 500 fund is his VOO) because the fees are the lowest in the industry and the fees add up over time. I personally prefer ETFs to mutual funds. This is because management fees are low and you can buy and sell at any time, not just after the net asset value is calculated at the end of the day. It is a significant event that causes a large market decline, such as a war, terrorist attack, or natural disaster. Once you have more money, try investing in individual stocks.

Alternatively, if you're just a trader and want to make a profit now, you can focus on stocks at any price, but you can't buy a last-minute stock like AAPL for $10,000; no profit will be made. Because you'll be competing with people who have far more money and better information than you. These people are trained to accept funds from new entrants and will accept any well-known and heavily traded stocks.

Stock prices below $5.00 are very risky. Although there is potential for huge profits with these types of stocks, you should be fully aware of the risks associated with penny stocks. Risk capital is required when trading. This basically means you're prepared to potentially lose everything, and it won't affect you in any way. If you don't really know what you're doing—investing your money in the wrong low-priced stocks or just playing around with one of these stocks—you can lose 25–50% of your entire account in one day. is very likely to be lost. In the long run, There is really no way to make $200 in one day of trading. The reason is that trading requires money management and, in some cases, losses, so the losers are probably 40–50% of the winners. Some days you'll make $1,000 and other days you'll lose $500, but if your wins are slightly more than your losses and your losses are less than your wins, limiting your losses can pay off in the long run. can. This is actually the "holy grail" of trading that people look for but never find. Although I personally focus on trading penny stocks, I have extensive experience in advanced technical analysis and use technical trading systems that are statistically favorable and have long-term promise. I started trading around 2004 and make a living from stock trading. I spend a lot of time optimizing my trading strategies, so I consistently learn how to make money in this market area where 95% of participants lose money. Like most people, when I first started investing, I tried to invest in penny stocks and lost, but I believed in the "story." Later, I realized that most penny stocks are just scams, but now that you know how the market works and who the main market participants are, you can make money with penny stocks.

When you trade, you are essentially in direct combat with another trader (long trader and short trader) on opposite sides of the trade. If you have more information than them, you will win. If you are essentially gambling without knowing anything, you are sure to lose because there are potential traders and market makers waiting for inexperienced people like you to take advantage of. . Unfortunately, the general public is not the one to participate in timing the market, especially the penny stock market, unless they invest the time and money to learn how the stock market actually works.

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