A common question I get is how do I know if I’m making enough money as a Der. Obviously this can be a trick question. How can you know if you’re making too much money or not enough? It’s simple you just don’t. It’s simple that is where the hard work pays off and then some. You start with nothing. You go to work for nothing. You do it because you love it. If you love it then you can make money at it.
You cannot accurately gauge your income potential unless you do it. Do it in a safe and boring manner then you’ll be safe in the knowledge that you’re making money. If you don’t do it the hard way then you might never get there. Here’s how:
1. Start small. Start trading the penny stock. Just buy one or two and don’t worry about making money.
2. Once you’re sure you like it, you can raise your stakes a little. Get more controlling of your positions. Your risk goes up a little. (ie 1.5 times as much if you now have $10,000)
3. This makes it safer. Your losing is limited to your own ability to lose and you’re ability to protect your position.
4. By controlling your risk then you’re making a little more money.
5. Continue doing this for as long as you like. Keep buying your penny stocks. Your risk goes up a little bit each time.
You can increase your trading stakes just by adding more stocks. In fact you can increase them much faster than this method and this method will be the fastest way for you to get to the end result.
If you want more money and you want it now then you’re going to have to do this in a much more aggressive manner. As a day trader you will need to go for the biggest payday possible which is exactly what this method will allow you to do.
The point is simple. The aggressive day trading method and the aggressive method for day trading penny stocks will be the same thing in the end. They will be two different means of making the biggest payday possible.
I hope this helps you understand the two methods a little better. If you need any help with your stocks or your penny stocks I can help. Just email me and I will be more than happy to explain.