Prof. Tyler yamazaki

Day Trading
When it comes to day trading, the investor is going to buy and then also sell
a security in just one single day, sometimes doing it several times during the
day. Fortunes can be made with this kind of trading, but they can also be
quickly lost. In order to get day trading to work, you need to have a lot of
experience and knowledge in the particular market place you are trading, a
good strategy, and sufficient capital.
There are a number of benefits by adopting day trading strategies, which
include:
The potential profits that you can earn will be huge if you get
more than one trade that is profitable during the day.
There is no long-term risk because you only hold a position for
less than 24 hours. It is not likely that a company is going to
change drastically within a day.
However, there are a few cons that come with day trading strategies.Some
of the cons that you will find with day trading include:
You need to have an account balance that is reasonably large
before you can even get started.
It is only suitable for those with great discipline and can control
their emotions well.

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Day trading works well with a margin account. This type of
trading can make you lose more money than you put in, which
can be relatively dangerous.
Momentum Trading
The next strategy that you may want to consider is momentum trading. This
is a strategy that the investor would use if the Stocks are moving quickly, as
well as on a high volume, going in one direction. When it comes to Penny
Stocks, many of the investors are going to play on an upward momentum
because these are not usually going to be available for a short sale.
Stocks have momentum, mainly due to some buzz that is going on around
the Stock, such as through the news or rumors. To find these Stocks, you
will need to do some research and read through forums, message boards,
and news to find out what exactly is going on. You should be able to find a
few Stocks that are getting quite a bit of attention at a time, which means
that traders are going to be playing the Stock pretty hard in order to get the
price to go one way, and then they will take their profit before it all goes
downward again.
You need to take the time to watch how the trading activity on the Stock is
doing before you make the purchase. Ones that have the momentum trading
opportunities are the ones that have a really high trading volume and ones
that are moving either much higher or in the opposite direction compared to
the rest of the market.
So, after you have a list of the Stocks that you would like to trade, it is time
to make the purchase. You will want to purchase it as quickly as possible, at
as low of a price as possible, before the momentum starts to go down again.
Once you have bought the Stock, be ready and watch the changes in the
market, look out for changes in various trading charts, and also monitor the
news. If you see that there is anything negative about the Stock, such as bad
news, bad indicators, or a negative trend, you should try to do a quick sell
to cut your losses before moving on; this is not a strategy where you wait it
out to see if it gets better.

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On the other hand, if the momentum keeps going up, you will still need to
hold on to the Stocks and wait until the bids start to pile up. If the
momentum is going up when you receive these bids and they are high
enough for you to consider, you may want to close your position by selling
the Stocks. The momentum can cease going up at any time and could start
to go lower so take a side that you are comfortable with before the tides
start to turn. There may be a chance of earning more if you hold on to them
longer, but if you hold on for too long, you are going to lose it all so it is
better to get what you can out of them.
Some of the benefits that you can observe with momentum trading include:
Momentum Trading works well with Penny Stocks due to its
nature, which means you stand the chance to make a lot of
money in a short amount of time.
You will be able to find a lot of information through message
boards and other forums in order to pick the risk Penny Stocks.
While this is a great way to make some good money in a short amount of
time, there are also some cons that you will need to watch out for. Some of
the cons of adopting momentum trading strategies include:
Sometimes Penny Stocks are so volatile and your window to sell
and make a profit can be very limited.
Companies that have dilution agendas can sometimes stall out a
momentum run.
There are some people who will use this idea in order to get
more people to purchase their Stocks. Fake news will be flying
around so you need to be careful.