I started day trading penny stocks about 2 weeks ago, and so far have had no wins and a -$93.22 profit. I now consider myself one of the 90% of traders who fail (for now). I have no problem finding the best stocks with high gains & volume. I have been using E*Trade as my broker and they charge $6.95 per trade - which is $13.90 total for getting in and out of a trade. A BIG lesson that I have learned is to have a larger position size in a trade. I have currently about $700 on E*Trade but only risk about $100-$200 on any given trade.
If I buy a stock at $1.00/share and sell it at $1.10/share with 100 shares, I would have a profit of $10. BUT, E*Trade would take $13.90 for commissions leaving me with a loss of -$3.90. If I had 200 shares and risked more money, I would have made $20.00 and made a total of $6.10 after commissions.
Also, don't trade stocks that don't move at least 10 cents during the day.
crazy with those penny stocks.
Bro, dont beat yourself up. This shit takes years. Ive been a breakeven trader for 2.5 years. You and i got plenty of time to go. But one thing i recommend working on is your risk to reward ratio. If you make 2 times more on a win than a loss, you only need to be right 33% of the time to break even. Making 2 times your loss is easy, and winning more than 33% of the time is plenty doable. Also, dont risk mmore than 1-3% of your account at a time. Risking 100-200$ on a 700$ account is suicide even
I agree alot with what's being said here. @xbows is right, it's not sustainable. If you look at my history after commissions I am a break even trader. I think it's useful up to a point to at least prove to yourself that you know what you're doing. Once you feel comfortable in your abilities just stop for a while. Relax and save your money to get after it once you have an account size that you feel is necessary.
And focus on learning one setup at a time until you are comfortable and consistent with it 65% of the time at least. I use a couple of long setups and a couple of short setups. My last 6 trades have been long setups, dip buying or breakouts, and have all been profitable between 1% and 7.5%.
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