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Day Trading Penny Stocks

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What You Need For Day Trading Penny Stocks

Day Trading Penny Stocks



Many people earn their living or supplement their income by day trading penny stocksDay trading penny stocks is more difficult than day trading NYSE and NASDAQ listed stocks due to the light volume and lack of liquidity in many penny stocksPenny stock day traders make their money by finding hot penny stocks that are actively trading, since there are ample opportunities to make money day trading hot penny stocks and they have adequate liquidity to get into and out of hot penny stocks.

Day trading, either listed or penny stocks, involves   quickly buying and selling stocks to take advantage of small price movements.  Like any other trading strategy, day trading has many variations and styles.  Some day traders literally buy and sell stocks in a matter of seconds or minutes to take advantage of small price moves quickly.  Other day traders will initiate day trading positions in the hot stocks of the day and try to ride the day’s momentum higher by holding for hours during the trading day.  The one thing all day traders have in common is that by the end of the trading day they have sold their positions in the stocks that they are day trading.  A major advantage to the day trading approach is that day traders avoid drops in stocks that occur from news that is released after regular trading hours.

At the very least, a penny stock day trader needs Level II Quotes that provide all of the best bid and best ask quotes and the associated order sizes for a stock.  Knowing where the other stock market player’s bids and asks are in a particular stock is crucial to being a successful penny stock day trader.  A penny stock day trader needs to know what bid or ask is available at a particular moment to either initiate or liquidate a position in a penny stock.  This is especially important if one is day trading and wants to get into and out of stocks in a matter of seconds or minutes.

Professional penny stock day traders who require the ultimate control over their day trades and need to be able to get into and out of penny stock positions at a rapid pace and at specific price points without delay use direct access trading systems (DATs).  DATs, while more expensive, provide penny stock day traders additional order routing control and order execution speed, which make DATs worth the additional cost for highly active penny stock day traders.  Penny stock day traders use DATs to route penny stock orders directly to market makers, specialists, or electronic communication networks (ECNs), which provides much faster order control and execution versus going through a retail online broker.  If a penny stock day trader sees a bid or ask that they would like to trade, they can execute the trade directly and without delay using DATs.

Where to Find Tips For Day Trading Penny Stocks

While there are many places to find day trading penny stocks tips, these are the most active day trading penny stocks trading boards on the Internet.  If there are day trading penny stocks tips to be found, they can be found on these boards.

Investors Hub Day Trading Penny Stocks Tip Boards

• BB’s Stock Haven
 The Hunt for the Next 5-10 Bagger
• Momentum Players
• Lion’s Den
• OTC Intraday Alerts

Silicon Investor Day Trading Penny Stocks Tip Board

• The Microcap Kitchen: Stocks 5¢ to $5

Many day trading penny stocks tips can also be obtained from penny stock trading tips sites that offer email alerts, such as

For more information about the Stock Market, see: Stock Market Advice – Definitions and Strategies, How to Play The Stock Market, and Advice on Stocks – Definitions and Valuation Methods.

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