Have you been wondering about day trading penny stocks? Not sure what it is or wondering if you should do it? Day trading penny stocks is the simple process of buying and selling a penny stock within the same trading day in hopes of pulling a quick profit. Usually people day trade because they feel it is too risky to wait until the next day to sell.

There are many people who make their income from day trading with great success. There are also those who have gotten burned by this process as it can become sort of an addiction. There are certainly advantages to day trading penny stocks and there are consequences.

First off you need to know that the SEC has certain rules concerning this practice. The main rule is you must have a least $25k in a margin trading account in order to do more than 3 day trades in a single week. What happens if you do not have this money and this type of account and do 4 or more day trades in a week? Well, nothing too horrible, they just freeze your account for several months so you cannot do any trading. Just be careful with day trading penny stocks. Really, if you’re doing it right, you only need one or two good trades in a week.