Adidas Wilson - Penny Stocks Made Simple--A Beginners Guide to Day Trading Penny Stocks

Copyright 2019 by Adidas Wilson

All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the publisher, except in the case of brief quotations embodied in critical reviews and certain other noncommercial uses permitted by copyright law. For permission requests, write to the publisher, addressed Attention: Permissions Coordinator, at the address below.

Adidas Wilson

P.O. Box 2262

Antioch, Tn. 37011

siriusvisionstudios@gmail.com

www.financierpro.com

Disclaimer

T HE AUTHOR HAS MADE every effort to ensure the accuracy of the information within this book was correct at time of publication. The author does not assume and hereby disclaims any liability to any party for any loss, damage, or disruption caused by errors or omissions, whether such errors or omissions result from accident, negligence, or any other cause.

Table of Contents

I ntroduction

Ch. 1 - Day Trading

Ch. 2 - How to Day Trade

Ch. 3 - How to Micro Invest

Ch. 4 - Mistakes Beginning Investors Make

Ch. 5 - Penny Stocks and Trading Charts

Ch. 6 - Stock Market Chaos

Ch. 7 - Financial Ratios

Ch. 8 - Penny Stock Trading Apps

Ch. 9 - Rare Investment Strategies

Ch. 10 - Why Some Investors Always Profit

Ch. 11 Stocks to Monitor

Ch. 12 - Trading Silver/Gold

Ch. 13 - Top Cannabis Penny Stocks

Ch. 14 - When to Buy or Sell Any Stock

Ch. 15 - Penny Stocks Investment Tips for Beginners

Ch. 16 - Leading Indicators

Ch. 17 - Common Investing Mistakes

Ch. 18 - Factors Driving the Prices of Penny Stocks

Ch. 19 - Penny Tech Stocks

Conclusion

Introduction

L ow-priced shares and penny stocks are not suitable for everyone, even though they have great qualities. They can quickly turn your small investment into a fortunebut they can wipe out your dollars just as fast. When making this decision, do not lie to yourself. It is okay to walk away if the concept does not suit you. It is a good choice as well because penny stocks do result in losses, a lot. However, there is good news. Most people waste their investment dollars by purchasing the wrong stocks for the wrong reasons and at the wrong prices. The investment risks involved can be avoided easily by educating yourself on the reality of this venture. Generally, penny stocks on the best markets are still small or very new. They trade for pennies before they can trade for dollars. While investing in penny stocks, only risk funds or money that you know you can afford to lose. Only get into low-priced shares when you have learned enough and can stand the potential volatility. Find an expert who has mastered the industry so you can learn from their mistakes. People are so eager to invest a small amount and turn it into financial freedom that they believe promises and let their guard down. Over time, there have been countless scams that have caused people to lose crazy amounts of money. Think of all the cryptocoin scams that made promises they never kept. To avoid common mistakes, learn the ins and outs of trading using Paper Tradinga method of selling and buying low-priced shares that is risk-free and requires no money. You will need a piece of paper and a pen to monitor imaginary trades, happening in real stocks. Your portfolio will have imaginary money. By using Paper Trading, you will be more knowledgeable when you decide to jump into the real thing. You will also pick up penny stock lingo and know what mistakes to avoid. New investors always make one common mistake: investing in the hottest industry at the time. The main problem with this hot industry is that, by the time you get to hear about it, a million other people have heard about it too. It will get crowded too fast and be heavily priced as a result. Make this your slogan: buy what you know. Try getting into a field that you already know something about. What are you passionate about? Is it fashion, gold mining, mountain biking? You will always have a pre-established advantage with this strategy. Find corporation and industries that you already understandespecially those related to your work. This may be against human nature, but you need the advantage. Look for a source (or even better, sources) that you trust and start from there in finding an investment.

Chapter 1

Day Trading

D ay trading is quite alluring. Making money by trading from your couch is way more exciting than a 9-to-5 gig. The problem is that if you are an inexperienced or careless day trader, your portfolio can be wrecked in a matter of seconds. You need to understand the ins and outs of day trading and how you can minimize the risks. What Exactly Is Day Trading? Day trading involves purchasing and selling securities in a short frame of time, usually a day. The aim is to gain a small profit with each trade and compound the profits over time. Cheap trades and online brokers facilitated the viability (and level of risk) of day trading. It enables investors to turn quick wins into a huge bankroll. Practically, however, it is much harder to make profits through day trading. A study conducted in 2010 showed that it is only 1% of day traders that make profits consistently. The research was carried out over a period of 14 years. The small number of day traders who consistently make money devote a lot of their time to the practice. Eventually, they make it their full time jobthey do not just trade quickly at lunch or between business meetings. If you really want to try day trading, borrow a leaf from the experienced full time traders. How Does Day Trading Work? Day trading is highly volatile. Day traders heavily depend on the fluctuations of the market and the stock to make profits. Securities that bounce around throughout the day are highly liked. It does not matter what causes the fluctuations; be it general market sentiment, negative/positive news, or bad/good earnings reports. Day traders also love highly liquid stocksthese ones let them move in and out without significantly affecting the price of the stock. A trader may purchase a high moving stock or short-sell one that is moving lower in order to profit on its fall. Sometimes, they trade the same stock severally in a day to benefit from the changing sentiment. Regardless of the strategy they apply, their aim is to find a stock to move. What Makes Day Trading Hard? There are two reasons for this: Retail day traders compete with professionals. These professionals know all the traps and tricks. They have access to personal connections, data subscriptions, and costly trading technology. They are set for success, but they still fail. The field is crowded. Retail investors are subject to psychological biases. They hold losers for way too long and sell winners too early. They are scared to buy declining stocks. First, you need to ask yourself if you have what it takes to get into day trading. You cannot be faint hearted, and you should have intense focus. Before you commit real money, consider getting a practice account. Brokerage accounts typically offer practice modes. You trade hypothetically and see if your strategy works.