Trading penny stocks is something that requires a lot from you. You may have heard on several occasions how other penny stock traders are claiming how easy it is to trade in this market. But one thing they’re hiding from you is how much money they’re actually losing.
I’m sorry to say it, but let me be the first to tell you this. Trading penny stocks is very dangerous; you can lose all your money in just a blink of an eye. It requires so much that some people just choose to trade without doing the bare minimum. Unfortunately, not doing any research does make it worse for them.
Then why are they still getting involved in this market?
This is a question that’s being asked a lot, especially during these couple of months as the stock market has been struggling to keep up.
Although it’s very hard to trade them successful, they do give us the opportunity to make lots of profits. When I say lots of profits I do mean that. In fact, there are many professional traders who are making millions from trading only penny stocks.
For example, Tim Sykes is one of the millionaires out there who has trained himself to become one of the most recognized penny stock traders. He has become so successful in this venture; he even has his own education system or platform now to teach others like you.
To get back to our topic, when is the best time to trade?
You’ll find many different responses for this question. If it wasn’t for that I’d not write this piece myself. The stock market opens at 9:30 AM ET and closes at 4:00 PM ET. That’s a total of almost 7 hrs we have to trade each market’s day.
Nonetheless, knowing when it’s the best time for you to trade can be very crucial. Do you want to know why? I bet you do, well there are some periods of time during the market hours where most of the stocks are going crazy.
As the market is opening many activities are taking place which may affect your experience after you’ve bought your shares. Some bad news that may have gotten out the previous day could affect the market in the next day.
The periods of time where this effect is usually seen the most is during the first 15 minutes of the market as well as the last 15 minutes. Although I don’t see why someone would decide to buy shares at the last 15 minutes, believe me it’s very common.
If you’re new to trading penny stocks I’d advise you to start trading around 12:00 PM. By then all the craziness should start calming down, which should be a great period of time for you.
Still, many well experienced investors are making money from their shares as soon as the market opens. This requires lots of knowledge and you’d also have to know the patterns of the stocks in which you’re putting your money.
Don’t let anyone tells you that the penny stock market is easy because they let you trade pennies. In fact, those stocks that are traded for a couple of pennies are the ones that demand the most research from your part.
Start your day-trading at a reasonable time will help you to be successful. When the stocks are the most volatile are usually during the first 15 minutes. You can’t control that once you’ve acquired your shares.
Good luck trading and always do your due diligence in order to stay alive in this market.