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penny stocks and day trading?

Discussion in 'Ask any question!' started by Iamuchendu, May 1, 2020.

  1. Iamuchendu

    Iamuchendu New Member

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    hello! noob here so please forgive me if my question isn't the greatest.
    I am wondering what the difference in penny stock trading and day trading? or can you day trade with penny stocks? I watched wolf of wall street recently and now I feel dodgy about penny stocks, I want to understand them and if it could be a benefit for me to learn about and trade.
     
  2. bomberman

    bomberman New Member

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    Can anyone shed some light on it ? I am wondering the same thing. I am a beginner, and I am trying to understand how it actually works. Recently, I came across Investous Broker, and it really made me interested. I have a couple of friends that are working on this trading platform, and they told me that they earn a lot of easy money here. If they can do it, I am sure I can do it as well! I am ready to work hard and study every day, I just need to get started. I have already found a very nice book called "The Money Game" by Adam Smith. What else should I do to get started in trading ?
     
    #2 bomberman, May 26, 2020
    Last edited: May 29, 2020
  3. anotherdevilsadvocate

    anotherdevilsadvocate Well-Known Member

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    Day trading involves buying and selling the same stock multiple times a day, e.g. you look for a stock (or several stocks) that are moving well (large move & not choppy), buy a position then sell it in a short time later. If the stock continues to act well you can buy-and-sell it again, or move on to another stock that is acting well. You close all positions at the end of day to avoid gaps from overnight news (eg. stock dilution).

    Yes, you can day trade with penny stocks. A penny stock that moves 10 cents cleanly in one direction in just a short time would be great to day trade.
     

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