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How To Start Trading Penny Stocks
Penny stocks are the best type of stocks to trade, if you want to grow a small account, but first there are some things that you should know before start trading this kind of stocks because they are too risky and you can wipe your account if you don’t know how it works. On this page you can find all the information that every penny stock newbie must know.
First, you must know that penny stocks are volatile stocks and for that reason you should not wait and hope. Most newbie day traders hope that the stock will come back in the next hours and they lose a lot of money. Risk management is the number #1 difference between Professional Day Traders and Newbie Day Traders.
To help you start trading penny stocks, below you can find everything that you must know. Don’t ignore it!
🔰 What Broker Should I Use for Penny Stocks?
Nowadays you can find multiple brokers online to trade penny stocks but there is a problem. Most of the brokers that you can find online, they charge a big commission to buy and sell stocks, have a poor trading software or you need to have +$25.000 to avoid the PDT Rule (Pattern Day Trade). In case you don’t know, the PDT rule says that you must have +$25.000 to do more than 3 day trades (buy and sell on the same day) per week.
TradeZero broker is the number one choice to start trading penny stocks, not only because of the $0.99 flat commission (or $0 commission), but also because of the trading sofware available. You can choose between the trading software ZeroPro, ZeroWeb, ZeroFree or ZeroMobile to trade and there is no PTD rule, which means that you can start day trading with only $500.
The image above shows the ZeroPro plataform that I recommend you to choose. Through this trading software you will have access in real time to stock market quotes, level 2 and much more.
In case you don’t like the ZeroPro trading software from TradeZero, you can choose SureTrader.
SureTrader is also a good choice to trade penny stocks, but you must know that the commissions and software fees are higher when compared with TradeZero. Here, you pay a minimum commission of $1.95 per trade. The trading software used is the DAS TRADER PRO, which they call SureTrader Desktop.
The above image shows the SureTrader Desktop (DAS TRADER PRO) which is one the most used trading software to trade penny stocks. Here you have access in real-time to the stock market quotes, level 2, short locates, top list of stocks and much more features.
As I like both brokers, I use both (TradeZero and SureTrader) to trade penny stocks.
💰 How To Find The Best Penny Stocks to Trade?
To find the Best Penny Stocks to trade each day, you must use a stock scanner. You can find online multiple stock scanner options, but the most used by Professional Day Traders and most recommended it’s the Trade-Ideas Pro.
As you can see by the image above, Trade-Ideas Pro is a very powerful stock scanner that you can use to find stocks to short sell, up and down gappers, penny stocks with high volume, penny stocks that are making new high of the day (HOD) and much more.
With this software not only you will stop losing time finding home run penny stocks that can make your account grow, but find new opportunities.
📈 Best Stock Chart Software
To analyze charts you can use the trading software from your Broker or even Trade-Ideas Pro, but after you try TC2000 you will want to keep it, because this stock charting software is the best, has a lot of features and has everything that all Day Trader need.
The above image shows the TC2000 software. It’s highly customizable. It’s one of the best stock charting software that you can find. Not only for penny stocks, but for every type of stocks.
Get now TC2000 software and receive a $25 off coupon code.