Frequently Asked Questions

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Stocks are shares of ownership in a company. When you buy a stock, you own a small part of that company and can make money if the company's value goes up or it pays dividends.

Although penny stocks are cheap, you need sufficient capital to manage risk effectively. The Pattern Day Trader (PDT) rule applies if you make more than three-day trades in a rolling five-day period.  

• Momentum Trading: This strategy involves buying stocks that are trending upwards on high volume, hoping to ride the wave of momentum.
• Breakout Trading: Traders buy stocks when they break through resistance levels, expecting the price to continue rising.
• Scalping: A very short-term strategy where traders buy and sell quickly, sometimes holding stocks for just seconds or minutes to capture small price movements.
• Reversal Trading: Betting on a stock that is down trending but shows signs of reversing direction.

• Stock Screeners: Use screeners to filter stocks based on price, volume, or other criteria.
• Social Media & Forums: While risky, some traders get tips from communities like Reddit or Twitter.
• Watchlists: Following a curated watchlist of penny stocks can help you narrow down opportunities.

 Stock prices move based on supply and demand. That demand is influenced by things like:

• Company performance (earnings, growth)
   
• News (good or bad headlines)
   
• Economic factors (interest rates, inflation)
   
• Investor sentiment (fear or hype)
   

If more people want to buy than sell, the price goes up. If more want to sell, it goes down.

 The Pattern Day Trader (PDT) rule requires traders to maintain a minimum balance of $25,000 if they execute four or more day trades within five business days. This rule is meant to protect inexperienced traders from taking on too much risk. 

• Brokerage Account: A reliable broker that supports penny stock trading is essential. Some popular platforms include E*TRADE, TD Ameritrade, and Fidelity.
• Charting Software: Tools like TradingView or ThinkOrSwim can help with technical analysis.
• News Feed: Real-time news feeds and stock screeners can help you stay ahead of any market-moving events.