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Penny stock day trading is a well-suited investment strategy for the volatile and speculative nature of this market. The idea is to get in and out quick.

Like a Ninja Warrior, you make money through stealth and speed.

In May 2008, Gulf Coast Oil & Gas (Symbol: GCOG.OB) had a perfect move in the market for momentum players. I mention this stock to illustrate a point. Please conduct your own due diligence before trading this stock, as circumstances change daily.

The stock opened around .0015. Based solely on rumor of a new oil find, apparently, GCOG began to move up on heavy volume. Seeing the momentum, penny stock day trading mavericks piled in to the fray. Within an hour of the open the stock had moved up to almost .02.

That means at its height, an investment of $1,000 would have returned you approximately $13,300. All in less than one hour.

This is why people clamor to play this intense, and often profitable, game.

After peaking near .02, the stock settled back down to the .007 range. Slow traders who bought at the high of the day and did not sell on the way down obviously lost money, or were forced to hold their shares for a later trade.

Day trading is not for slow clickers. You’ve got to see an opportunity. Take the bait. And then get out quick when you have achieved a reasonable profit. If the trade moves against you, you exit the trade and move along. Within minutes the stock may hit the bottom of an intraday dip and rebound to new highs.

You never know. Penny stock day trading is a crazy way to make a living. It takes nerves of steel, total focus, and access to a good online service provider—including Level II quotes.

While I believe fliping stocks intraday for profit is ideally suited for the OTCBB and Pinksheets markets, it may not be ideally suited for you. Never play this game with money you cannot afford to lose, limit your position size in each trade to no more than 10% of your overall portfolio value, and take profits fast when they handed to you.

One additional hurdle you need to jump before getting involved in penny stock day trading is the SEC’s pattern day trader rule. This rule stipulates that you must have at least $25,000 in cash or stock value in your portfolio to move in and out of the same security on the same trading day. You can get the details on this rule by clicking here.

To find out how to avoid the basic mistakes in trading, and learn about some good books on buying penny stocks, click here Penny stock day trading is exciting and can be profitable. Get the whole story by visiting my homepage here.