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0:05 A lot of people ask me: what are the pros and cons of day trading penny stocks? There are a lot of pros and a lot of cons, and you need to know all of them.
0:15 Ninety percent of traders lose money in the stock market. You have to understand that this is a very tough game to master.
1:05 One pro is that because penny stocks are priced very low, they are affordable.
1:30 Another pro: there is not that much competition because penny stocks are commonly looked down upon by just about everyone.
1:55 A con that goes along with that is that there’s not that much money to be made when you’re trading penny stocks.
2:30 That brings me to another pro: you don’t need more than a few million dollars in your life. I know billionaires who are miserable. You just don’t need that much money.
2:50 I’m never going to be a billionaire, and that’s fine. I’m ok with it.
3:00 Another con is that there are liquidity issues. You can’t take a $100,000 position immediately in any penny stock.
3:40 A pro and a con is that every company says they have the next big thing. You have to be aware of the scams.
4:15 I like to think of all penny stocks as though they are all scams.
4:30 Another con: you’re never going to get any respect. Everyone will look down on you because they think you’re a scam because you are investing in penny stocks.
5:00 It’s also a con that people look down on you because that means less competition.
5:30 I want to teach you the pros and cons of trading penny stocks.
If you want to learn how to day trade, apply to be my next millionaire student here: https://www.timothysykes.com/millionaire-challenge/