PENNY STOCK TRADING STRATEGIES COURSE

Our community also has live day trading room where you can come and join us each day and watch us live stream. We like to think of ourselves as the pay it forward trading community within the stock market. Come and join us, ask questions, and make yourself at home.

We are all about helping our community members learn day trading penny stocks the proper ways. We are not a pump and dump community, we are teachers that are all about helping our community members to become profitable and safe traders. Each day, we teach live how to trade the markets. Check out our live trading room.

1. How to Trade Penny Stocks in the OTC

Penny stock trading strategies are important when you begin trading in this sector. Penny stocks usually trade outside of the major market exchanges. These small cap stocks are priced under a dollar.Typically penny stocks are seen as high risk. Since penny stocks are usually small companies, they have fewer filing and regulatory standards. This causes a lack of liquidity and large bid-ask spreads. (Make sure to check out ThinkorSwims penny stocks app).

Penny stocks are usually known as OTC (over the counter) or pink sheet stocks. Pink sheets are a compiled daily with the bid ask spreads. Pink sheets aren't required to file with the SEC. Because these stocks are risky, making sure you have good penny stock trading strategies is paramount. The attraction of penny stocks is the fact that they don't cost a lot. They also promise big profits. 

Who wouldn't want to spend only a little to make a lot? It sounds too good to be true right? Usually it is. There is money to be made. But there's also money to be lost. Typically losing means losing big.

Scammers run the penny stock game. That's why you need to be careful. Plan out your strategy and stick to it. Use a penny stocks app like Robinhood to practice.

When you want to invest in the stock market with little money penny stocks are attractive. Buying stocks like amazon, apple or google can seem out of reach. For example, you see a stock that's $0.30 so you want to make a little money. You buy 10,000 shares and spend $3,000. It gets to $1. You've just made $7,000. Day trading penny stocks can be very lucrative if done right. Pot stocks are a very profitable sector to trade when the momentum is running.

2. Best Penny Stock Trading App

What's the best penny stock trading app if you're looking to day trade penny stocks from your phone? ThinkorSwim, Robinhood, Webull, and IBKR are good penny stock trading apps.

We'd like to caution you before using a pennystock trading app because this sector is very volatile, so if you do use them then make sure you have proper risk management strategies set up. If you don't know what that is...it's time to study more. If you want to learn more about the best companies for all types of trading then make sure to check out our tools page above to see our company reviews.

You can use all the penny stock trading strategies in the trading world but if greed gets a hold of you it's over. You'll lose your gains faster than you can say support and resistance.

You're trading the momentum and that changes quickly, and you need to be prepared. In this case you never go broke taking your profit. We go in depth on how to trade small cap stocks in our course below.

1. Control Your Emotions

If you want to learn more about penny stock trading and watch us teach how to trade them live then make sure to join our community!

Learning how to control your emotions is one of the most important aspects to trading. Anyone can learn the technicals if they study enough but learning how to control your emotions is one of the toughest aspects to trading. We are emotional people and the emotions of fear and greed are the downfall of most traders.

They want to get rich quick and be in on the action and this is what messes up their trading decisions. It takes a lot of time to learn how to control your emotions when trading and that's why we recommend paper trading for months first before trading with real money.

Make a few hundred paper trades first and then slowly scale your way up trading with real money. If you're not able to trade profitably in a paper trading account first then it's going to be very hard to make money in your real brokerage account because the emotions will really mess with your head. Check out our trade alerts.

2. Penny Stocks App & Volume

You need a lot of volume when you're trading. Stick to penny stocks that trade at least 100,000 shares a day. Ideally, 300,000+. If you're trading stocks with low volume it could be difficult to get out.

When you're trading with high volume, the stock will be volatile. Volatile up or down. That's exactly what you want, movement and price action. The volatility is going to push the price. Price can move pretty quickly and emotions will often flood in.

So, make sure you don't hold for a long time. Get your gains and get out. Use mental stop losses. Penny stocks are moving quickly and a stop can be triggered in a second then bounce back even higher. 

Since penny stocks tend to have large bid ask spreads, there's a higher risk of losing money. Mental stops take more concentration. You're not relying on that hard stop loss you've use in larger cap stocks. Hence the need for penny stock trading strategies. Take our free online trading for beginners to keep working on your skills.

3. How to Trade Penny Stocks

Learning how to trade penny stocks takes time. Do not try to rush the process. That's where most new traders fail. They are so busy trying to make money so quickly when they haven't learned the fundamentals first. Make sure to check out Robinhood's penny stocks app. It's good to practice on but doesn't have the best penny stock availability. 

Most new traders join a trading company and then they jump right into the first trade that the guru enters into. What they don't realize is that they will always be late to the game day trading penny stocks this way because the trading guru got the first entry.

After they've filled their position, many of their followers rush in and then pump up the stock. The guru then sells their position for a quick scalp, and many of the times their followers are left bag holding the gurus shares because they bought at the top.

This is the unfortunate reality of the penny stock trading world and one that we teach our members how to avoid. Again, you won't see us pumping and dumping whatsoever in our community. We teach you how to trade small cap stocks the right way. The safe and profitable ways for trading penny stocks.