Top Ten Tips and Tricks for New Penny Day Traders

Published on January 2, 2017, by in Personal Finance.

So you want to trade penny stocks? Well, of course you do, trading penny stocks can be exhilarating, challenging, and profitable. But before you make that first trade here is our top ten tips and tricks for new penny day traders. If you remember these ten tips you will be on your way to being a successful penny day trader.

Never risk more money that you can lose. Set budgets and plans and stick to them. Have separate accounts for penny day trading, retirement, and day to day expenses.

Have a plan or strategy. Here is a great beginner’s penny stock strategy to get you started:

Set up an environment to work in that is comfortable and allows you to concentrate. What works for one day trader might not work for another. Make sure your environment works for you.

Stay informed. News, news, and more news. The more you know, well the more you know. The worst feeling is holding a stock a little too long because you failed to read that morning’s newspaper.

Do not be afraid to take a small profit and cash out. Making money with penny stocks is all about making a lot of small profits. You are not trying to catch the whale just a lot of minnows.

Said another way, penny stocks very, very seldom make good long term investments. There’s a reason they call it day trading penny stocks.

Take care of yourself. Drink plenty of water, exercise, walk outside and get some fresh air to clear your mind, meditate. Day traders can easily become hermits spending all day and night hunched over computer screens and spreadsheets. A well-rested mind and body will help you make better decisions.

Invest in your own continued education. Reach out to other day traders you admire. Offer to take them to lunch, pick their brains, engage with them, and learn from them. Take classes on subjects that interest you. You want to keep your mind in peak condition and learning new things is the best way to stay sharp.

Mentor a newcomer. You will learn as much from them as they learn from you. You will be energized by their excitement.

Stay hungry and humble. No quiet, unpretentious person went broke by keeping their head down and knowing their limits.

Keep these top ten tricks and tips in mind as you start day trading and you will be on the right track to becoming a successful and happy day trader. Now that you know the tips and tricks learn how to trade penny stocks at Warrior Trading.

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