Many people slog along in corporate jobs that allow very little creativity and freedom. The cubicle trap is real. Workers are seduced by the illusion security as executives and HR department heads espouse the values of the company and convince them that they will be treated as family. The myth holds for many workers, who feel comfortable trading their time and labor for security for themselves and the ones they love.
But day traders have figured out that you can break those chains. You can achieve financial independence with time and effort and penny stocks. While it may seem like a bold claim there is little to no doubt that many traders make real money from penny stocks. Thought of as silly small companies that offer little value to the world, penny stocks can actually bring traders a lot of profits, for example if they buy uber shares. If they can learn how to trade them effectively.
That is the crux of the problem. It is hard work to learn how to take penny stocks and turn them into gold. You need discipline, a plan and plenty of ability to handle risk. Risk management is so vital to day trading and it is also a very good outlook on how to survive when you get the courage to move away from the corporate teat. Making the move from a boring, soul-destroying cubicle job to the world of day trading and penny stock trading takes guts and plenty of study.
So here is a primer. A detailed educational explainer on exactly what penny stocks are, how they are traded and what they can offer day traders that want to try to make money in penny stocks.
Penny stocks are low-priced, small-cap stocks. They used to be called pink sheets or OTC stocks, because they were listed on pink paper and sold over the counter. Penny stocks are considered by the SEC to be any stock that trades at a share price between $2 and $10. They are prone to serious volatility, violently fluctuating from low lows to high highs, all in the course of one market morning. Which makes for great fodder for day traders.
Penny stocks are inherently risky and they have the reputation for being havens for scammers and corruption. They have a reputation not unlike the Wild West of the 1800s to individual investors. But they really can provide value to day traders and investors. If you make sure that you pick the right stocks. There are strategies and plans for how to do that.
How do you buy penny stocks? Well, you can buy penny stocks through any online broker, regardless of whether or not they are listed on a major exchange. They are also on listing services like OTCBB and PInk Sheets.
What is the gain from buying penny stocks? In a word, volatility. Day traders can make real money from stocks that make huge moves on a particular day. The trick, as always, is finding those stocks and getting in and out at the right times.
Brought to you by our friend, Justin.