Finding More Penny Stocks to Watch
Finding penny stocks to watch is a very vital part of being a profitable day trader. You need to be able to find the stocks that are about make big moves if you are going to make any real progress or profit as a day trader.
And being a profitable day trader means that you are going to make the move from salaried rat racer to financially free human with no boss and your own office. No more annoying co-workers. No more terrible bosses.
Day trading begins, though, with the proper education. Even if you were great at finding penny stocks to watch, you would never be able to make the move to trading them effectively if you did not have the skills and techniques necessary.
It takes hours and hours of screentime in order to become even a serviceable day trader. You need to be able to know when you get into these trades and when to get out. It is all about timing.
Day Trading Online
When you take online day trading classes, you learn momentum day trading strategies that will let you take your profitability to the next level. You will learn the gap & go strategy, which means looking for stocks whose share price is up in the morning above the closing price the day before.
These stocks, if they meet other certain factors, can really mean something in terms of making big moves. Learning to spot these factors and jumping on these stocks is very important when it comes to make money as a day trader.
Finding a breaking news catalyst is also a very important factor when trying to find a gapper that is about to make a move.
Day Trading Education
Day trading education can be a boon to a beginning trader or a very experience trader. It never hurts to participating in continuing education and learn how to brush up on your skills.
Working to get better even when you are a profitable trader can have long term benefits. You can learn new skills that help you react to an evolving market. And you can interact with other traders in classes and chat rooms, passing on knowledge from being a veteran trader.
Penny stocks to watch can be the lifeblood of a profitable trading practice. Looking for these stocks with stock scanners and by looking at watch lists in chat rooms can start you on the way to making more money than you ever had before. Then you can invest in better trading software and algorithms that help you scour the market every day for your winners.
Being a Successful Trader
Profit/loss ratio is very important for being a successful trader. When you trade, you are going to be wrong about 40% of the time. That means that the 60% of the trades that you call successfully need to be relatively big wins.
If you can keep your profitable traders to at least double what you lose, you will come out ahead. That happens with detail-oriented record keeping and careful planning. You need to know when you exit a trade before it takes a big dip. Always have a stop-loss ready to go on the trade, if it starts to lose money in a way that you did not expect.
That is the only way to stay profitable. Be ruthless in your trades and generous in your wins.
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Category: Investing
