How to Trade Stocks and Make $100 a Day

While you are waiting for your account to get the proper verification, do an internet search for ‘penny stocks‘ and read all you can about the topic. There is not too much to know that is any different than regular trading, but you may find some helpful tips.

Read about the companies. It is more fun to invest if you find a company that you think has a good service or product. That way you will also feel less upset about buying stock which may not bear fruit.

Look at the daily graphs. What you are looking for are stocks that fluctuate greatly throughout the day. For instance, if you find a good company and the stock goes from $0.01 to $0.0175 a few times a day for a few days in a row, you have hit the jackpot. It will take a while before you find that perfect stock, but when you do, you will be prepared.

Buy your stock with a limit. You will see that you can buy or sell, choose your quantity, what type of trade (market, limit, stop, etc), and for how long (day (it will be canceled at the end of day if not fulfilled) or GTC (good til canceled)). If the stock is currently at .014, you can set a limit to buy at .01 and GTC and walk away. It will buy automatically when it reaches .01.

Once you purchased the stock at your limit price (hopefully in the morning) you are ready to sell with a limit. It is the same process as above but click sell instead and change your limit to a higher number, such as .015, and GTC. If the stock regularly hits .0175, and you set your limit to this number, it may take longer to sell because the asking price may be higher than that, such as .0185. It is weird, but I find it much easier and faster to trade within the numbers.

Once you have sold your stock, it is time to do it again. Ideally, this can happen a few times a day. Either way, as long as you set limits with a GTC trade, it is an easy way to make a quick buck.

Personally, I have been buying 30,000 shares at .012 ($360) and selling at .0165 ($495)(the fluctuations are .011 to .0175). This is a profit of $125 (after the $10 ($5 for each trade)) and it happens every 2 or 3 days. I could do it everyday, but it just happens that I am not around a computer all the time. If you made $100 a day every day, that is an extra $26k a year from a sub-$400 investment!

Update: If you buy 10,000 shares of a stock, it may get executed in 4 pieces. We are trading stocks that are not highly traded, so we may not be able to get all we want at one time. If you enter a trade GTC, you may get 5,000 shares on one day and 5,000 the next day. This means you will pay 2 commissions. The commissions are based on a daily rate of 1 trade. But if your 1 trade takes 2 days, it will be treated as 2. This goes for selling as well. It really has only meant another $4 or $8 out of my profit, so it has not hurt me too badly. But it is good to know.
photo credit: harry525