This would be okay if you could do this five days a week and be sure that each stock you selected promptly rose after you bought it. On the other hand, you buy the stock at $9/share and it goes down to $8.75/share. A week later it's back to $9.00/share so what do you do? Sell and lose $14.00 or hang on?
You hang on because you decide not to sell until the stock reaches $9.50/share. It's fun to buy stocks and wait for them to go up before selling them and that's what most individuals do but trying to time when this will happen is a hundred times harder.
Invest, have fun, and leave the "day trading" to people who can start with $100,000 so that $9.00 to $9.50/share movement generates a $3600.00 day profit.
And you have to pay tax on your profits, too!
I'm making good profit with penny stock. Check here http://trade-pennystock.checkhere.info
Many new investors are lured to the appeal of a penny stock due to the low price and potential for rapid growth which may be as high as several hundred percent in a few days. Similarly, severe loss can occur and many penny stocks lose all of their value in the long term. Accordingly, the SEC warns that penny stocks are high risk investments and new investors should be aware of the risks involved but you can even make very big money. These risks include limited liquidity, lack of financial reporting, and fraud. A penny stock is a common stock that trades for less than $5 a share. While penny stocks generally are quoted over-the-counter, such as on the OTC Bulletin Board or in the Pink Sheets, they may also trade on securities exchanges, including foreign securities exchanges. In addition, penny stocks include the securities of certain private companies with no active trading market. Although a penny stock is said to be "thinly traded," share volumes traded daily can be in the hundreds of millions for a sub-penny stock. Legitimate information on penny stock companies can be difficult to find and a stock can be easily manipulated.
Its ok to start with 1000 dollars but its kinda hard, I started this year with 1200 and was up to 1605 in mid february where I took 300 dollars out for spring break. Ive been trading since october last year and have finally become profitable and consistent. As the person stated below with a 36 dollar profit on a five percent move gives a very small amount of profit and will probably not happen to much, especially if you day trade, and commissions will eat away your account. Also having only 1000 dollars, your stop loss needs to be pretty tight, making timing a huge key because commissions alone is 1.4% of all your money and you never want to risk more than 3-4% "in my own opinion" including the % of the commissions. So really a 4% stop loss is 2.6%. I would recommend holding stocks, not day trading just yet because you need substantial profits in order to be profitable if your going to keep up with commissions and be consistent enough to win more than you loose especially since you can only trade one stock at a time. If you were to trade two stocks at once then you immediately have a 2.8% loss on both stocks. As stated numerous times in a book called market wizards, they emphasize how most traders will have multiple small losses and have winners that make up most if not all of there gains, which is the way its been for me and another trader I know. I doubt you will have winners substantial enough to make up multiple day trade losses as a move of 5% is rare for one day and you would need gains of more than 10% to keep up with your small losses, which yet again ruins the idea of day trading.
For example lets say you loose 3% with 1.4% commission added in so really your stop loss is 1.6% on your first trade, your now at 970. You loose another 3% and now your at 940. In order to get back to 1000, you need a 6.3% gain just to break even and sometimes you might loose 3 times in a row.
this is why you need to hold stocks, not day trade
Ive been trading in the 1000-2000 range for a while now and have good understanding of how to beat this problem.
I would also recommend to never buy stocks off of news or some stock guru suggesting to buy one. I would recommend you go to freestockcharts.com and scroll through the entire nasdaq or S&P or NYSE until you find a stock that fits your criteria.
Mark
Why don't you equip yourself with the right knowledge so that you can make that decision without even depending on other people's opinion. The SFW strategy could be what you need to identify the right stocks,
It is a one of kind system that teaches all you need to know about trading stocks with profit.
Do youself a big favor and put that grand into a roth ira
Bulls make money, bears make money and pigs get slaughter
The stock market always advance overtime
Take Care
I'm just starting to day trade and I was curious as to what stocks would be the most profitable and would help me "beep up" my account? I have only $1000 in my trading account which I know isn't normally a good number to start at but it's all I had to start.
