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Day Trading Penny Stocks and Losing Money? Top 3 Reasons Why

Okay, so you took the plunge and started day trading penny stocks on a daily basis. You bought tons of guides, ebooks, software and everything imaginable and have been tracking your trades like crazy every single day. So why are you still losing money in the micro cap market? Don’t quit! You can still make a profitable business out of trading! Here are the top reasons why you might be losing money trading micro caps and how you can fix them without going broke.

First off, are you underfunded? Part of the problem when it comes to new traders is they do not save up enough capital for day trading stocks. This can lead to problems when it comes to entering the financial markets because commissions will drain cash from your wallet quickly. I recommend having at least $1000 in startup capital to trade micro caps consistently and seriously. Any less than that and you risk getting called out by your broker.

Next, are you analyzing the wrong indicators? Penny stocks typically move as the result of fundamental indicators rather than technical ones, so look more at the overall health of the company and the hype surrounding the stock when day trading micro caps. Don’t analyze the technical pattern too much! This can mislead you and cause you to miss the hot micro cap stocks in exchange for ones that will fall. There are just too many false breakouts on micro caps to focus solely on technical indicators.

Finally, are you trading penny stocks on a good system? If not, you seriously need to reconsider the system you are using and find one that really works. I trade on the Penny Stock Prophet system and have found it to be consistently profitable when it comes to day trading micro caps. If you are still using free stock alerts, these can often cause you to lose money quickly because they are sub par. If you want to trade penny stocks seriously, you need to invest in a good penny stock trading system.

Stock Market Success Guide

Stock market might be the answer to all your irrepressible urges of making quick money. But stock market is only for the bold and courageous. It is for the people who are willing to take risks and have the potential to carry off these risk situations without panicking.

If you are debating within yourself whether to invest in safe mode as in savings account or bonds or whether to be adventurous and reach out for the stock market, a gentle reminder—stock markets can generate a profit of about three times and more compared to all other conservative modes to money making.

A few words of caution must be taken to all the brave hearts trading in the market. It is never a great idea to invest in the stock market with the attitude of a gambler taking willful chances. To be investing in stocks and getting mouthwatering returns, one needs to equip himself with a thorough knowledge of how the market is faring and also he needs to do his homework sincerely before putting his money in any stock.

There is no set formula for creating stock market success stories. So rather than to dwell in a fairy land and wait for some angel to guide you to the right stock, you should spent all your time and energy in studying the various company stocks and trends over a period of time. Before deciding on which company to choose from, you should also find out whatever you can about that particular company’s products and services. A stock trader’s most important aim should be to concentrate on taking a good pick. He should also be very patient and not rush towards a hasty decision solely on the basis of current market swings.

Since it is very difficult to predict general market movements, one should always do a bit of research on the specific company on which he is investing. If need be, you should personally visit the company, find out more about their products and services, closely observe how they operate, try and talk to some of the employees working there. For example, if it is a retail store chain you can just visit a store and test the waters, sample a product and see for yourself how they serve their customers.

In situations where there is a market slide, the first advice would be not to panic, next would be not to follow the temporary market upheavals and the third step would be to just be patient, taking in the bigger picture, and wait for the stocks to appreciate and then find an opportune moment to dispose them off at high prices.

Be a man of business. Spend time and effort in researching company stocks. Take informative decisions. Do not rely on instincts alone. Do not go by what the media or experts predict. Right timing of picking up new stocks and finding the correct time to dispose them off is crucial for your success.

In case you have suffered previous set backs and have lost considerably after investing huge sums, instead of panicking and losing confidence try and learn from your previous mistakes and employ a different strategy the next time you are staking your money.

There is thus no set path to succeed in stock trade. But you will definitely enjoy a strong position if you educate yourself well before taking the final decision. Instead of relying on myths, be wise enough and base your decisions on the realistic figures of market survey. Hard work is bound to pay and your success story will definitely be written.

How to Realize Profits of 200% in the Stock Market

Penny stocks are some of the most volatile investments which you will find in the stock market which is why they are the sole focus of many day traders. The profit potential is unlike any other investment but just like with any other investment, there is risk associated with it. This is why millions of traders the world over have turned to relying on one method in particular to reliably triple their profits in the stock market.

The method I’m referring to is relying on an analytical stock program to guide your investing for you. These are programs which are based on technology used by professional traders day in and day out to guide their trades.

These programs work by taking the full spectrum of the market into account both past and present. They build massive sprawling databases of past breakout market behavior to identify the factors which led to those appreciations and short-term performances. They then apply this information to real-time stock behavior around the clock in order to find even the smallest overlaps between the two to further investigate.

When they find what they believe to be a high probability trading opportunity, these programs notify you so that you can invest accordingly knowing exactly what to expect in terms of appreciation from that stock so you can get in and plan you exit strategy accordingly. This ensures that emotions are kept out of the equation altogether, making for the most reliable way to invest in the stock market today.

Because it’s such a different analytical process anticipating behavior of a penny stock versus a greater priced, more static stock, some programs exclusively target penny stocks given the far greater volatility associated with them.

Take a recent pick which I received from one such penny stock specific stock program. The pick which I received late Sunday evening was initially valued at $.21. I purchased 1000 shares of that stock which seems like a large investment but again at $.21 that’s really just an investment of $210.

I placed an order when the market opened Monday morning and got on with my own day of work. I didn’t have a chance to check in on it until the end of the day when that stock had doubled to $.43 a share in an eight or nine hours span.

The next morning I made it a priority to check in on that stock as often as possible. I watched as it steadily climbed to $.51 in the first couple of hours alone which you can attribute to other investors without the same knowledge as me taking notice of its previous day’s work.

Ultimately, that stock topped off at $.65, just shy of its $.68 projection at which point they began to slowly reverse. Ultimately I tripled my initial investment in less than 36 hours just by relying on cold algorithmically crunched market behavior and nothing else. This gives you an idea of the kind of appreciation which these stocks are privy to when the slightest trading influence can send their prices skyrocketing or plummeting.