So you'd like to know how to start day trading penny stocks. Once you've mastered understanding charts and indicators, you can trade penny stocks or any other stock. The method is pretty much the same — you're just buying stocks that are cheaper on the ASX. I'm only talking about the Australian penny stock market here as that's what I trade, but once you learn the basics you can apply it to any world market. I choose Australia because I live here and don't want to be trading at night for US or UK markets.
Getting Started with Charting
When day trading penny stocks you'll be working with shorter time frames. One of the best charting systems I found when starting out — and still use today — is Trading View. It's free to download but I use the paid version as I use around ten indicators. If you are checking out stocks, there will be a 20 minute delay but crypto is live.
Day Trading vs Weekly Trading
I have day traded Australian penny stocks before but you need to be watching the market during the day, and right now I'm working six days a week so that's not possible. For a trading platform I use Bell Direct — they have the cheapest commissions and a lot of great information on their site.
The Indicators I Use
The first thing to do when starting out is read about indicators. The two main ones I use are Moving Averages and MACD with candlestick charts. I'll be adding a page to my site showing you how to set up Incredible Charts, but they also have a great tutorial on their own site if you want to get ahead.
Candlestick Charting
A great book on candlestick charting is written by Louise Bedford. There's a lot of information but don't let it overwhelm you. Once I understood what the candlestick patterns meant I added them to my charts as a background indicator. You need at least three indicators working together to give you a clear buy or sell signal.
Moving Averages
I rely most heavily on my moving averages. The best part about having them set up in Incredible Charts is that I can uncheck them when I want a clearer picture and check them back in when I need them. Simple but effective.