The secret of day trading penny stocks is not really a secret. Lean in a little closer and I will tell you.
The secret is to work hard, learn the correct strategies and control your risk. Risk managment is so crucial to profitable day traders that you need to learn that above all else. Momentum trading strategies are important, but they can’t do much for you until you can manage your emotions and your risk.
Picking the right stocks is essential to any day trading venture, and momentum day trading strategies in particular. With momentum stratageis, you need to find the right stocks on a particular day, the ones that are about to really make a leap and you need to jump on them. Then ride the momentum until you make the most amount of profit possible.
Managing risk comes next. You need to establish a profit/loss ratio that ensures that your profits will far outweigh your losses by the end of the day or the end of the week. Getting a big score on Monday and then losing it all on Tuesday is not conducive to being a day trader for very long.
When you can read charts quickly in real time, that means you are ready to trade in real time. Reading charts and finding stocks with home run potential is key to being a successful day trader. Warrior Trading can help you learn advanced chart reading, where you find the gappers that are trending up and identify the technical indicators that will point to which stocks are worth jumping on.
Level 2 trades are an important part of day trading. Learning from Warrior Instructors means you will learn the importance of making Level 2 trades and how to profit from them. And Warrior’s paper trading simulator is set up to make Level 2 trades, which means you can do that with virtual currency and learn with little to no risk.
Learning to use free trading tools, especially when you are first starting out, is a very important part of being a day trader. That is how you keep overhead low in the beginning stages of your day trading career. Keeping costs down is key to being profitable in a very short period of time and building up a nest egg that will allow you to trade on a bigger scale and make more profits as you grow.
For more secrets on how to day trade, follow Warrior Trading on Twitter. You will not be disappointed.