Beginners’ luck when day trading penny stocks is more dangerous than helpful. In general, the worst outcome for a new trader is to be successful right when you start day trading penny stocks. The big reason for this is that it leads to extreme overconfidence. A new trader that makes money right when they begin …
The variability of trading profits in penny stocks is difficult for most new traders to fully comprehend. The reason for this is pretty clear once you think about all of the potential outcomes of any trading decision that you make. For example, you can make a good decision and be rewarded with a positive outcome …
Not everyone is cut out for trading penny stocks. The main reason I say this is because the most difficult part of becoming successful at trading is that you have to learn to take complete control of your emotions. Some people are very disciplined and can learn to do this fairly easily, whereas most people …
As a trader you probably have heard people talking of cutting losses quickly and managing one’s emotions, but what does this really mean? It’s hard for people to understand until they really experience it for themselves. This is why I feel all new traders should not only spend some time paper trading, but also a …