Many Day Traders are momentum traders who incorporate chart patterns in their strategy, the difficult part is identifying the stocks and avoiding the chat room banter which distract from profits. We think it is best to have stocks identified which will have volume and volatility. We want you to help you make money by removing the step of having to identify which stocks to trade. Most websites are paid by the companies to list them; we identify them because they are currently in a promotional campaign. Knowing this simple fact can save you time and money.
Short-term, or day, trading means that the trader generally does not hold positions overnight and trades in a shorter time frame using shorter term tools like 15-minute or a 5-minute charts with volume and simple stochastic, combined with some simple trading rules improves your chance of success.
Day trading is popular for several reasons, especially its simplicity once the skill has been mastered. It is a business with very low start-up costs and a potentially unlimited upside. Although there is the possibility that individuals can lose more than they fund an account with, brokerage house monitoring tools have evolved to protect the trader. But it all comes back to the tools you use and the methodology you develop for yourself which get you through the tough times in each trading day, month and year. This is a race of endurance not speed, and it is mental not physical.
For many beginners day trading is the way they were introduced to trading, and brokers and dealers rely on a steady flow of new account holders coming through their doors. Day traders generally trade more shares than do position or swing traders because they trade smaller time frames. The larger trade size means they can take smaller bites out of the market and make just as much as the longer time-frame traders make, only over a shorter period.
The same techniques for distinguishing between trend and counter-trend setups and the use of stop placement that is based on percentage of the account and chart structure apply to day trading. Day trading is very much a microcosm of position trading and swing trading. The only difference is that in day trading one must be aware of scheduled economic releases and other world or financial market developments that can affect price movement over the short term or intermediate term. This combined with simple trading rules and the awareness of what stocks to watch on a given day are the first steps to a repetitious method. Discipline and familiarity for price patterns and market awareness are the building blocks for any successful trader.
What strategies does Penny PayDay use for evaluating their stock ideas?
We focus our ideas on stocks that appear to have a solid market and are embarking on an upcoming marketing campaign. We always try to place our members at the front end of a large scale marketing campaign. These campaigns can drive penny stocks well over their appropriate price valuation. Below are some examples of companies that marketing drove their prices well into the overbought area.
• SMCE 440%
• VKNG 2650%
• RBTI 300%
Although these companies may have been over valued based on their fundamentals; marketing created a shortage of available stock for sale and in turn the price of said stock quickly rose.
It is important to know that these stocks drop in value just as fast or faster in many cases when the marketing stops.
How can I protect myself against the quick drops in price?
We value your subscription to our newsletter and want you to be as protected as possible if you do decide to invest in our stock ideas. With that being said; we recommend that you ALWAYS you use Stop-Loss Orders when trading penny stocks. A Stop-Loss will help insure that you don’t lose more than you’re willing to lose on a given stock.
A Stop-Loss Order is an order that is placed with a broker to sell a security in the event that the price drops to a predetermined price. These orders allow for a trader to remove the possibility of missing a trade because they were not able to watch the market. These orders also help limit emotional attachment that one may have to a particular security.
Remember trading penny stocks involves risk and you should never invest more than you can afford to lose. AGAIN: It is possible that an investor’s entire investment may be lost or impaired due to the speculative nature of the companies profiled. Invest at your own risk.
Will Penny PayDay tell me when to sell a stock?
We will alert you to stocks that we believe are poised to move but we will never tell you to buy or sell a security. We simply supply you with trading ideas and it is your responsibility to do your own due diligence and get a second opinion from a registered financial advisor.
PennyPayDay.com makes no recommendation that the securities of the companies profiled should be purchased, sold or held by individuals or entities that learn of the profiled companies through PennyPayDay.com.
