Should I Trade Penny Stocks with a Small Account

Simply No. You may win big and you may lose big. Regardless, penny stocks are not the best option in terms of long-term education and sustainability.

Learning to trade large cap, liquid options is much more beneficial and rewarding in our opinion.

AMD, NVDA, AAPL, MSFT, FB, SPY, and QQQ contracts are extremely liquid, volatile, and cheap. You can find contracts for 0.50 to 2.00 rather often.

If one can master trading options with these 7 stocks, possibilities are endless.

The downside to trading penny stocks is you will be constantly searching for new ideas and determining risk/reward levels can be extremely difficult.

The upside to trading the 7 tickers I mentioned above is you can focus on price action, strategies, risk management, and trading. You will have no liquidity issues and you will not have to sort through 100s of charts each week.

It is very possible to hit 100% gainers on these tickers with options regularly which is something new traders don’t always grasp since the underlying may only move 1-3% any given day. But that is exactly what makes options so powerful. They take into account a tickers volatility. This means that a 2% move in AAPL could produce a greater return than a 7% move in ROKU.