Let's look at the facts and why Day Trading Penny Stocks does not work and will see you lose your cash.
1.The Odds are not on your side
Normally day trading relies on trying to predict what will happen in a day session.
How can you do this?
You can't.
No one can predict what will happen in such a short term time period, it's the equivalent to flipping a coin.
2. Losses are kept small but
You have a huge chance of being stopped out.
Day traders normally have small losses on trades but they have a lot of them. Now that by itself is not bad it's a rule of successful trading.
3. Profits can't cover losses
Free Stock Trading Software never run profits for a long period of time. They want to get in and get out and scalp a profit.
Now if there lucky to get one (and even day traders get lucky) it can never cover the losses they have and they have a lot of those.
So here is what day trading gives you
Small losses + High Odds Of Being Stopped Out + Small Profits + Low Chance of Success = Loss of Equity
The above equation neatly sums up why never can win and if you don't believe it try this simple test:
Ask any day trader who sells a system to give you a track record of real time profits with real dollars ( not a hypothetical track record ) and you wont get one.
Most day trading vendors have the sense not to trade and make money by selling books it's a lot easier to make money that way.
Wherever you go on the internet you see them day Day Trading Books promising you a low risk way to make a fortune however ask any of them to produce a real time track record and you won't get one.
Because day trading simply is not an easy way to make money it's an easy way to lose all your money. Here's why.
Day trading is big business and it's a great story.