Small cap penny stocks. What is the automatic reaction when people hear these words? „Don’t spend money on them.“

I agree! Don’t invest in them. What I mean by investing is purchasing shares of a penny stock and holding them for a long period (months/years) in hopes of having the price/share go up.

Nearly all penny stocks don’t hold their value over long periods of time. Don’t get me wrong, there are several small cap stocks which have shown huge boosts in price over a long period of time, but they’re too far and also too few in between.

So what’s the perfect solution? How do you earn money from penny stocks? You make money by day trading penny stocks.

What’s day trading?

Day trading is just selling and buying shares of a stock on the same day. But why would you wish to day trade penny stocks? Simply because that’s how you could obtain the most profit in the least period of time!

Penny stocks show the greatest daily percentage gains than some other stock available on the market. Gains of 50-100% daily are not unusual. Here are some real life cases to demonstrate my point.

02-09-2006 – AXIGE – 272%

02-09-2006 – VPER – 200%

02-13-2006 – PAPO – 136%

02-13-2006 – CKEI – 184%

02-14-2006 – PTSH – 366%

02-14-2006 – IELM – 115%

02-14-2006 – CSUA – 111%

02-15-2006 – LAMP – 149%

02-15-2006 – CTUM – 133%

02-15-2006 – JKRI – 116%

02-16-2006 – SEVI – 225%

02-16-2006 – RSMI – 93%

Within five days, you would have had Twelve opportunities to potentially increase your money! To increase the potential from these high percentage increases, you would day trade these penny stocks. You see, by day trading, you don’t risk observing the stock price go down in the long run. You just purchase and sell shares on exactly the same day, often even within hours and also lock in your earnings! You don’t have to worry about your stocks overnight simply because you have already sold them and made money!

That’s the secret to making money from penny stocks. Simply buy the shares, ride the growing percentage wave, and also then sell the shares at a high price to make your profit.

The key reason why most people are not aware of this key is that they instantly turn a blind eye to penny stocks. They do not even bother to research just how to earn money from it since their first impression of penny stocks is generally a negative one.

People who keep a balanced view and take time to understand penny stocks will see their enormous potential for income.

However, it’s not as simple as selecting a penny stock you think will do well. There are numerous aspects that you have to look for, as well as numerous traps to watch out for. Making the effort to understand by reading and also researching all you could about penny stocks, and even paper trading (trading using fake money) to get experience will help you succeed in making money.

A lot of people view day trading as high-risk. However, if you think about it, the more knowledge and experience you obtain, the less risk you have. For instance, if a person who’s never gone snow boarding before was dropped on top of a mountain, his risk of making errors will be high. However, if he spent time on the bunny slopes understanding and also training, that same risk would be reduced considerably. The same thing applies to day trading. Taking the time to practice and read can greatly reduce the potential risks. The beautiful thing about day trading penny stocks is that your analysis to find out which penny stock to day trade with isn’t as complex as the analysis completed to pick which penny stock to invest in in the future.

The analysis required to determine which penny stock to get for the long term needs a lot of fundamental and also technical knowledge. What’s the company’s PE ratio? How do their balance sheets look like? How is their funds flow? Finding this info is even more complicated for penny stocks as some penny stocks don’t have any earnings or revenue). Is the industry they are in flourishing? Who’re their competitors? How are the resistance and support levels? How about candlestick charting analysis? Are they on an uptrend?

However, analysis completed to determine which penny stock to day trade with simply needs a few points to look out for such as buying pressure and volume, among other things. Remember, you’re literally purchasing shares at 9:34 AM and offering at 10:18 AM (just a good example to state the brevity of the situation). You don’t need to do large amounts of evaluation.

The actual secret to making money from penny stocks is always to day trade penny stocks. That way, you take advantage of the daily huge percentage gains that just penny stocks display.

Penny stocks – visit this specific hyperlink or go to www.awesomepennystocksguide.com/ for more stock tips from the industry experts.