What you want as a day trader is penny stocks to watch that veer away from the tired old retreads that most sites have to offer. When you are a day trader, whether that be an aspiring novice with a need to gain financial independence or a veteran trader looking for insight into penny stocks to watch on a daily basis, you need a list that you can trust.
Warrior Trading is excellent at providing that list. They go beyond the typical penny stocks that other sites will keep an eye on. In the day trading chat room, you might see stocks from between $2 and $10 per share, right next to more expensive, higher-priced stocks. The goal, as always, is to make short-term gains on quick moving stocks, so small-cap stocks are a great place to make that happen.
The penny stocks to watch can be perfect opportunities for the Warrior Trading strategy of gap and go. Gap and go means finding stocks that are gapping up in the morning. What does gapping up mean? Essentially, that means a stock that is trading pre-market at a higher price than it closed at the day before. Those stocks represent great chances for spikes, because usually it means some piece of breaking news catalyst has pushed interest in that company.
The chance for a 20-30% squeeze on those stocks is pretty good. When you are looking at penny stocks to watch in the morning, the key is identifying potential home run stocks that are going to make huge moves during the day. You need to be ready to move on them as soon as the market opens and the right candle shows up.
What does that mean, that whole business about a candle? Well, it helps to learn as much as you can in day trading classes that teach the best techniques for entering stocks at the best time and having the correct stop-losses in place. That is the risk management mentality you need to have to be a profitable day trader.
Most day traders lose money. That is because most day traders do not have a good plan to manage risk when they get into the game. Risk management is vitally important to making money in the stock market. You need to know exactly how much you are willing to lose on each trade that you make and exactly how much profit you should make before getting out. The plan is very important. Traders with no plan are traders with no profits.
The best way to develop those risk management plans and practice those techniques is to spend time in a simulated trading environment. That is a place where you can trade virtual currency in a program that mimics the real market. You can make mistakes and lose fake money, without losing your actual shirt.
To find out more about penny stocks to watch and how day trading education can help you become more profitable, check out Warrior Trading.