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Day Trading Penny Stocks Versus Regular Stocks
by Tushar Verma on Sep 22, 2010
Penny stock trading and stock trading in general has a simple goal, you want to buy shares of a company at a certain price, and sell them for a larger price later on. You deposit money in an account with a brokerage so you can go online and start buying/selling stock, and start receiving the profits from your trading.
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...Read More >>
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