What is it Like in A Day in the Life of a Penny Stock Market Trader?
The best penny stock traders make it look so easy. You think to yourself, "Hey, look how easy it is for them to make money. Surely I can do it, too." The truth is, though, trading penny stocks requires having the ability to pinpoint patterns, and you must be willing to take on a lot of risks. If you're thinking about trading penny stocks, you should carefully assess what a day in the life of a trader looks like. This will help you decide if penny stock trading is right for you.
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Stock traders trade Monday through Friday. You don't necessarily have to be a full-time trader. Some traders even work other jobs and simply trade periodically. Others make the investment and let other traders trade penny stocks for them. Obtaining a mentor is a great choice to make because it helps you understand how to invest in penny stocks from a person who is a successful trader.
The Early Mornings (Pre-Market)
Stock traders get up very early. Usually, they are up and ready to go by at least 6 a.m., which is when they start reviewing what happened within the overnight markets on the other side of the globe. They will also take a look at global macro and any stock-specific news. It's important to note that the trader doesn't get a clear picture of the news that covers all sectors he or she trades in. Instead, the trader has to look at news from each sector. As you can imagine, simply reviewing the financial news can take an hour or longer.
All news findings are collated into a single document that is emailed to clients. A morning meeting then takes place. During the meeting, all clients share their views on what they think is going to happen that day as far as events that impact the price of any stock shares they have invested in.
After the morning meeting, this presents a trader a great time to grab a bite to eat. Other than grabbing a bite for lunch, there's not much time for a trader to leave his or her desk. He has to be reviewing the stock market all day, performing research, scanning the market, monitoring open positions and most importantly, making the call to either sell a stock or hold onto it.
Just because the stock market closes around 4:30 p.m. doesn't mean a trader's day is over. There is a lot of research and assessing that must take place to determine whether the moves the trader made that day were smart. This research will help shape the trader's decisions for the next day. This is also when the trader will conduct any after-work activity, such as reporting profits and losses. This involves creating a P&L statement.
The Evenings (Post-Market)
Many traders spend their evenings joining other traders for dinner to discuss what took place during that day and start making plans for the next day. However, others use their evening times to spend with their families or enjoy a hobby that they like.
If you are considering becoming a fulltime penny stock trader, it's highly recommended to do a lot of research and see if it's truly a job you think you will enjoy. It's a job that requires a lot of research and a keen eye for pinpointing patterns and trading opportunities. There are lots of online courses available so you can learn at your own pace.