What is a Penny Stock? Why Trade Penny Stocks ??  Can someone really get rich trading Penny Stocks?  Listen in as Tim and Stephen review the 2015 Larry King interview with successful day trader Timothy Sykes.

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In our first episode, we discussed the difference between day trading and investing. Building upon those concepts, our second episode covers why you should target low priced stocks–AKA penny stocks. If you want to know what it takes to be a successful day trader, you won’t want to miss this episode!

In Episode Two, two stories are intertwined to create an informative and eye-opening introduction to trading penny stocks. Our goal is to demystify the process by answering common concerns, addressing frequently asked questions, and approaching penny stock trading from what will likely be a different point of view than you’ve seen before.

Two tales of penny stock trading

The episode begins with host Stephen Johnson’s story about how a failed attempt at being a professional poker player led him to a different, more reliable way of gambling: namely, day trading. Along with co-host Tim Bohen, this opens up an incredibly informative conversation about the world of trading penny stocks, and how it’s perhaps not as risky and dangerous as many might think once you begin to understand how trading works.

This conversation is interwoven with a 2015 interview between Tim Sykes and Larry King. In this interview, one of the world’s most famous penny stock traders shares  more of his own story, including how his million-dollar injury led him to penny stock trading and why his goal has shifted away from making more money for himself and more to creating more millionaires by sharing his knowledge.

Through these two unfolding stories and conversations, you’ll discover a lot about penny stock trading and how to find success as a trader.

Why trade penny stocks?

Penny stocks are generally defined as stocks that trade for under $5 per share. Why such low prices? Often, these are companies are still in the developmental stages, or just offer one or two different products. Sometimes these companies turn into something big; for example, True Religion jeans was a penny stock at first. However, more frequently, these companies never turn into anything. Actually, as a trader, the latter situation can be a good thing, because it allows you to make a profit by short selling.

In a nutshell, short selling is the opposite of buying. Rather than buying a stock and hoping that it will increase and value and then you can sell it, you’re actually betting that the stock will depreciate in value and go lower. How does that work, exactly? In the course of the episode, both the co-hosts and the Tim Sykes interview reveal more about how this actually works, and how traders can make a profit by short selling.

Can you really make money selling penny stocks?

Truthfully, only the top 10 to 20 percent of traders make it big. Honestly, this is not because it’s hard to find success trading penny stocks. It’s more because few traders actually have the proper toolbox of skills and knowledge to effectively trade penny stocks. Put simply, if you haven’t put in the time and effort to build a strong foundation as a trader, you’re never going to be successful.

To find success as a penny stock trader, you have to take the time to learn the rules. Not only do you have to learn the basics of trading, but you have to learn how the market works. You must learn how to predict patterns, and how to create a plan and stick to it. A lot of hard work, practice, studying, and quite a bit of trial and error will be required of you. It’s not for the feint of heart, that’s for sure. But when you have a successful trade, there’s nothing like that feeling. As Stephen Johnson relays, it’s the closest thing he’s felt since the rush of playing competitive poker.

The trouble with penny stocks

If you Google Why Trade Penny Stocks , some of the first results you’ll see will involve trading penny stocks. While trading penny stocks is available and accessible to everyone, few actually know how to effectively pull it off without training. This means that many new traders will jump in without the proper knowledge, lose money, and write the whole enterprise off.

Of course, it doesn’t help that there are plenty of predators out there offering overpriced training courses that promise to make you a millionaire with penny stocks. Both the show’s hosts and Tim Sykes believe in transparency, and are creating a revolution by openly sharing their trades and techniques.

Are penny stocks right for you?

Ultimately, you can’t be fooled by the easy entry into trading penny stocks. It’s true that even if you have a few hundred dollars, a laptop, and an internet connection, you can start trading. However, that doesn’t guarantee success. Penny stocks require a lot of hard work. The only way you will find success is to establish a process, have a plan, and establish great methodology. It’s not about throwing something at the wall and hoping you make money.  Believing in random trades and following self serving stock promoters doesn’t work.

So…are penny stocks right for you? By the time you finish listening to this episode, you’ll have a much better idea of the answer.

Win big!

To celebrate the first season of the Steady Trade Podcast, we’re offering some incredible giveaways. Check out the giveaway page here, and stay tuned for our next episode, where we will continue offering tips on how to become an incredible trad

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