Penny stock trader

Penny stock trader are traders who basically looks for trading stock which stock prices level are below $5. Owing to extremely low prices, these penny stocks become a point of attraction for maximum of the small, novice as well as retail individual online stock trader.

It is having said that penny stocks are highly risky for online stock trading but still maximum of the peoples tries to do it or falls in love or avoid without trading it and suffers heavy losses, but on the contrary it is also having said that expert penny stock trader who are really extraordinary makes lot of bucks through it, because they are different from losers, they acquire extraordinary talent, knowledge and skill which helps them to be winner in penny stock trading.

The some of the quality that penny stock traders have are listed below but not limited to following

• Trading penny stock has not more to do with fundamental analysis but needs to do lot with technical analysis so successful online penny stock traders attentively look after charts and protect some hours for market analysis. They identify the strongest sectors of the market and then the strongest stocks in those sectors. They identify the level through chart that they are going to enter at and approximate targets for the predictable move.

• Successful penny stock trader does not overtrade but only waits and watch for exact and accurate entry point and predetermines their target for exit.

• They know if the overall market is in trending zone or in trading zone and depending upon this they determines their timeframe for stock trading, whether they need to exit taking small profit or need to wait for large move. They know if the stock is in trending zone then they keeps their stock position long and as soon as they find the stock is loosing their support level they exist the stock. They also know if the stock is in trading zone then they buys such stocks at every weakness and sells stocks at strength.

• While trading penny stock they knows the risk they are taking and predetermines their trading losses and keeps strict stop losses to avoid big losses.

• Penny stock trader know penny stocks are not for stock investing and so they does not remain invested in such stock for long period but they exist as soon as they find their profit margin has achieved.