Just like going to the horse track, day trading can be a lot of fun, but it may also be as costly as profitable. It is similar at the track that different people have different rituals when it comes to making picks.
1. Build your environment.
Before you operate day trading, you should set up your environment. Some good tools are available for free, for example, Yahoo Finances provides free but effective portfolio management tools so that you could set alerts and do some research. Another good place to go is Big Charts, which has the best free market charting online software. Additionally, TD Ameritrade is a good tool for both research and trade execution.
2. Charts and execution.
Day trading comes with risk, but you can start out by looking for those volatile stocks. The ones that are worth tracking are low today, high tomorrow, low the next day, high the next day, and so on so forth. You will want to buy when it is low and set your alerts in Yahoo and then wait for a good timing. You should jump into TD Ameritrade and sell it as soon as you get the alert that the stock has risen. Also, you can set up TD Ameritrade and sell automatically at certain numbers.
As a conclusion, day trading in penny stocks is not a fool-proof plan, however, the good thing is you ten to only throw pennies on them. At any given time, you can just spend less than $1,000 floating around in penny stocks and wait for something to hit. If your strategy is correct, you should be able to gain a fortune. As it is fun, you may prefer it over the race track someday.
*Image source: http://www.stocktradingdigital.com/simple-ways-to-trade-penny-stocks/