To become impatient means you might take a price less advantageous than one you could have got by holding out a little longer. Finally, you need a strong stomach. You should understand that day trading in pennystocks can result in one week gains that are monumental, or can set you up for a loss. Whether making a big profit or taking a paper loss, you should be able to handle the good and bad stress that will come with this method of trading. Otherwise, you may make moves for the wrong reasons and compromise your objectives.
Day trading is simply an attempt to capitalize on short term fluctuations in pennystocks.
Do this a few times and you are looking at a highly successful investment strategy. The downside of day trading comes into play when you buy an issue and it drops in value. At that point you either take a quick loss to keep your money available, or you sit and wait for a profit opportunity that may arise later, in which case your money is tied up until that time. This becomes less of a concern for traders who have more assets at their disposal, because while only a portion of their money is temporarily tied up in a stock that has fallen in value, the rest of their portfolio of pennystocks could be seeing good gains. The information presented further on in this article is designed to help you take advantage of day trading without significant risk, and with maximum profit potential.