Easy Entry Into Penny Stocks and Day Trading
If picking penny stocks was easy, everyone would be rich right? Well, that’s kind of a half-truth. The fact is that many people are making a good living or even just making enough to pay for their children’s college education. These days, that is like making a second income. Here are some darn good reasons to consider day trading as a reliable and affordable method of making money online.
If you are considering getting into the day trading or the marijuana penny stock market, it’s a legitimate and profitable method for making a living.
I’m not going to suggest someone with a $100 can get into penny stocks or day trading. However, if you have about $1,500 you can start trading. Unlike investing in real estate, you don’t need a lot of money to get started. Sure there are tax considerations, but if we are talking capital gains then that is a good problem to have. You do need these things in order to start day trading:
1. A computer and I recommend a laptop unless you have a Smartphone. You want to be able to receive alerts from your trading program when you are away from your home office. A Smartphone is ideal, but a laptop is a good second choice.
2. You need access to a reliable Internet connection for managing your trades. It’s obvious you need the Internet to monitor trades and evaluate stocks. But you need to take this a step further. If your income is based on minute changes in stock values, you need to set up a system to handle buys and sells when you can’t access the Internet. There will always be power outages, computer failures and times when you have to find another access point.
3. Reliable resources for charting and managing your trades. This may be software you install on your computer or it may be something that is accessed through the Internet.
4. A brokerage with access to real, live brokers. Most of your trades will occur without assistance from a broker, but there are always exceptions to this rule. You need access to a broker from 7 am to 6 pm Mondays through Fridays.
5. A trading account that is funded.
6. A great trading strategy. This is even more important than the computer and Internet access. You can turn to a broker to set up trades if you have a sound trading strategy.
7. I would spend some time on the website Awesome Penny Stocks they give free training and teach about how most penny stocks are scams.
Penny stock trading and day trading provides nearly instantaneous returns. This is quick cash you can liquidate or use for future investing. In most cases, a trade is going to cost you less than $25 in fees and commissions. Yes, you are going to have to endure some stress in the beginning, but once you experience success using your trading strategy, you’ll know how to repeat the system over and over.
Where else could you turn around a $500 investment for a 20% return (or more) and cash it out on the same day? Use the money to take your best girl out to dinner or turn around and reinvest it in just a few minutes. Try doing that selling used books on eBay!