Question by : I need reading material for investing into penny stocks and day trading?
I want suggested reading material about day trading and penny stock investment, any good books? Thanks for the help.
Best answer:
Answer by A nobody
Penny stocks are NOT considered by any one as an investment vehicle.The are fun to trade but never never buy them for an investment.
There is a World of difference between penny stocks and day trading.
Here are some websites that will help you with penny stock
http://www.smallcapinvestor.com/
http://www.stockwire.com/
http://alphaking.com/
http://www.otcstockexchange.com/
http://www.mcapstocks.com/Default.asp
http://www.pinksheets.com/pink/quote/index.jsp
http://ragingbull.quote.com/cgi-bin/static.cgi/a=index.txt&d=mainpages
http://www.swingtrades.com/
Here?s the ?day trading? rule that you will have to follow as a day trader who has been tagged as a pattern trader
The rules adopt a new term ?pattern day trader,? which includes any margin customer that day trades (buys then sells or sells short then buys the same security on the same day) four or more times in five business days, provided the number of day trades are more than six percent of the customer?s total trading activity for that same five-day period. Under the rules, a pattern day trader must maintain minimum equity of $ 25,000 on any day that the customer day trades. The required minimum equity must be in the account prior to any day-trading activities. If the account falls below the $ 25,000 requirement, the pattern day trader will not be permitted to day trade until the account is restored to the $ 25,000 minimum equity level
The rules permit a pattern day trader to trade up to four times the maintenance margin excess in the account as of the close of business of the previous day. If a pattern day trader exceeds the day-trading buying power limitation, the firm will issue a day-trading margin call to the pattern day trader. The pattern day trader will then have, at most, five business days to deposit funds to meet this day-trading margin call. Until the margin call is met, the day-trading account will be restricted to day-trading buying power of only two times maintenance margin excess based on the customer?s daily total trading commitment. If the day-trading margin call is not met by the fifth business day, the account will be further restricted to trading only on a cash available basis for 90 days or until the call is met.
In addition, the rules require that any funds used to meet the day-trading minimum equity requirement or to meet any day-trading margin calls remain in the patter day trader?s account for two business days following the close of business on any day when the deposit is required. The rules also prohibit the use of cross-guarantees to meet any of the day-trading margin requirements.
Judging by the wording of your question, you are not ready to ?day trade? and reading about will not help you at all. You first must understand the markets and the products traded in those markets, also you should understand the rules that govern those markets and the products traded
Know better? Leave your own answer in the comments!
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