Penny stocks don’t necessarily have to be priced at pennies, although you’ll find plenty of stocks that are cheap as chips. Penny stocks typically refer to stocks that go for under $5 a share.
For traders that already day trade for a living and those who are just starting out, it is only logical to seek answers to daily decision-making dilemmas like, how to find stocks to day trade.
Before we dive deeper into this subject, let’s make it clear that the amount of effort you’ll have to put into identifying the best day trading stocks under $5 will greatly depend on a few factors.
As always, your chances of success are multiplied by the day trading firm you choose to trade with. TraderXlab offers state of the art day trading software that makes the implementation of your day trading strategies, literally, a walk in the park. Besides, the platform assists the user in identifying the best penny stocks to day trade, with a unique feature that displays daily stock picks for day traders.
Penny Day Trading For Beginners
When you think of the most intriguing rags-to-riches type of story, most likely you envision someone buying a stock under $5 – also called a penny stock – that later appreciated in price so much that turned its investor into a millionaire overnight. Sounds too good to be true? Haters will hate, but this is exactly how Erik Finman became a teenage millionaire.
How To Start Day Trading Penny Stocks
Before you start, make sure you create an account with traderXlab to equip yourself with high-end trading tools and super-fast, ultra responsive day trading platform.
At this point, you should already have the basic knowledge of how investment works and how exactly you plan to execute your strategy. If not, don’t hesitate to seek guidance from your personal financial advisor at traderXlab.
Investing in stocks can be highly rewarding, and according to some sources, far more worthwhile than real estate. Since stocks are very sensitive to the political and economic news, they can fluctuate wildly, presenting plenty of lucrative opportunities to attentive investors.
Investors who know how to handle their portfolio and have a knack for market predictions can lay the foundation for exponential financial success and build colossal wealth. Stocks under $5, under the right circumstances, can provide incredible opportunities to achieve this goal.
Best Cheap Stocks To Buy Today
Always remember to diversify your trading portfolio and never invest all your capital in just one stock, no matter how cheap it may be.
Do proper research. This rule is true for any type of stock, not just penny stocks. Don’t be lazy to do your homework and look into the company’s data, its latest financial reports and forecast and try to estimate how much potential this company has in a few years from now. To start with, you need to sell the idea of investing in this company to yourself.
True Religion, an apparel company based in Canada, provides a great example of the gains one can expect when investing in penny stocks. In July 2004, this designer jeans company was trading for a measly $0.67 per share. Everything changed nine years later when TowerBrook Capital Partners acquired the company and paid $32 for every share. That’s a massive 4676% profit!
Best Stocks To Day Trade 2020
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