penny stock day trading

What day traders generally look for are price movements within one day (thus the term day trading) or within a short trading period.

Because penny stocks have such a low price per share, they may have good liquidity, meaning lots of trading activity on the stock.

That trading activity may result in substantial price changes for penny stocks, which, given the low per share price, may results in very large percentage changes, even within a single trading day.

Most of the available day trading strategies use some form of technical analysis on the trading decision making.

This is partially because the fundamental information based strategies many times take a longer time horizon than just one day.

Penny Stock Day Trading - Brokerages

Many day traders have found that brokerage fees are a major determinant whether their trading strategy is successful or not.

Thus, you should spend time researching not only the most efficient brokerage for day trading (trade execution times and slippage may be crucial on profitability), but also one with low trading fees.

Fortunately, there are now comparisons of different online brokerages available.

These resources include:

• smartmoney.com/brokers/index.cfm?story=intro (2003 broker survey)
• weissratings.com/News/Broker/20020514broker.htm
• jdpower.com/cc/finance/search.asp?CatID=5 (2003 Online Trading Investor Satisfaction Study)
• keynote.com/solutions/performance_indices/broker_index/broker_trading.html (Keynote Web Broker Trading Index)
  
  
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