Day Trading Penny Stocks Versus Regular Stocks
Hot penny stocks can make you massive profits even if you don’t have that much money to trade with. Use caution when trading penny stocks, but don’t overlook the potential rewards.
You can buy shares of a company and hold them for as long as you want, a day, a week, a month, years…it’s completely open ended. There is also something called day trading, where you buy and sell the stock within a very short period of time. This can be seconds, minutes, hours, or the entire day.
Day trading large NYSE stocks often involves buying a huge amount of stock and trying to profit from a tiny fluctuation in price, let’s say 1% for example. One percent is a very small profit, but if you’re buying $100k worth of stock, one percent is a thousand dollars.
Hot penny stocks are extremely volatile and make rapid changes in price. Since the price changes so much, you don’t have to have or invest nearly as much money to try and make a profit like $1,000. A low priced penny stock can easily make a gain of 100% within a day or sometimes much quicker than that. That means you can only invest $1,000 and STILL make $1,000 in profit in less than a day.
So to make big gains day trading the regular stock market, you typically would have to invest a ton of money. If you play the penny stock market, you can make gains just as large or larger than Wall Street…while playing with MUCH less money.
Penny stocks have always been seen as a way to level the playing field with the wealthy.
In fact, some of the most famous and respected hedge fund managers first started building wealth by trading penny stocks. A little known secret is that several powerful hedge funds are heavily involved in the penny stock market…but they’re under no legal requirement to disclose this to their clients or to the general public so virtually no one knows about this!
If you have the right penny stock picks, you can make just as much money as wealthy traders…but without having nearly as much money in the bank. It’s a great way to make big profits without needing to have a huge bank account.
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