Introduction:
I’m going to tell you about several
stocks that I believe are the best day trading stocks under $5. These
picks might have gone unnoticed by many traders, but I’ll show you why they
could be excellent additions to your portfolio.
BEST trading stocks under $5 are the slow and steady, high-yield investment vehicles designed for higher risk tolerance investors looking to invest in low share price stocks.
You
have to Research and Choose Stocks Wisely:
Day trading any stock, especially penny stocks, requires a high level
of research. It is important for investors to be well aware of the risk
involved. A good place to look for day trading stocks under $5 is
online forums such as Investorshub and Stockhouse. These online message boards
provide an opportunity for investors to discuss the pros and cons of trading and
investing in a particular stock.
Trade
with Caution:
When buying a stock, it is important
to have a stop loss in place. A stop-loss will help protect against downside
risk by automatically selling the stock at a lower price than the purchase
price. Buying stock without a stop loss is not recommended because you can lose
more money than you intended if the trade goes against you.
Do
not trade on Emotions:
Day traders should avoid making trades based on emotions or news that
is not substantiated by fact. The best penny stocks are those which have a
solid business plan and product or service with great potential for growth in
the future. Short-term fluctuations in the market are just that – short-term.
If a stock has good fundamentals, there will be many opportunities to make
money as the price fluctuates.
Conclusion:
The best free day trading stocks
under $5 is the first step to being a
successful day trader. There are over 1,300 hours in each year. If, for
example, you are trading with a $10,000 account your risk would be limited to
$10,000 x 4% = $400 per trade or ($400 x 100) per year. In this example, you
would need to make an average of 10 trades per week (50 weeks in a year divided
by 4 percent risk per trade) at least . That is a $2.50 profit on each trade just
to make your money back with almost no potential for growth.
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