Is intraday day trading for penny stocks possible?

#1
Well, some penny stocks (brila power solutions) have huge volume. So, i have decided to try intraday trading. However, what i have noticed is huge spread (33%). So, now my question is, even if i gain 30%, after pay the brokerage and the spread, my 30% profit turns to loss! So, it is possible to day-trade penny stocks? Or am i just "day-dreaming"??
 
#2
If you use online discount brokers they provide unlimited trading with monthly fixed price
0 brokarage but other taxes apply
so you save more from proffit
i'm a beginner, so i'm using moneybhai.moneycontrol.com for learning purpose. The brokerage is just 0.05% ( i don have any prob with that). The prob, however, is the high bid ask spread. Is the bid-ask spread dependent on broker?
 

paras_123

Active Member
#3
trade in Unitech, Kingfsher, Real estate companies - all have become or becoming penny stocks... There s a lot of list of these companies.... You can do all of your Trial and error method,

Happy Trading!
 
#4
trade in Unitech, Kingfsher, Real estate companies - all have become or becoming penny stocks... There s a lot of list of these companies.... You can do all of your Trial and error method,

Happy Trading!
Thanks a lot for the reply.

Yes, there are lot of penny stocks which are volatile and i love trading such stocks. Today i bought some shares of Birla Power Solutions and it rose 30%. However, when i tried to sell it showed -3% loss! this is because of wide spread (33%). What i have noticed is that all the penny stocks (even with high volume) have spread of more than 10%!!! so, it seems to me that penny stocks daytrading is a sure way to loss money! Please correct me..
 

paras_123

Active Member
#5
Trade in penny stocks, where volume is extremely good, there would not be 10% gap Spread,

for trial basis, i would suggest you go for Unitech, 30 plus levels... you have 300 Rs you can buy 1000 shares as 10 times margin on cash.

Regards,
Paras
 
#6
Well, according to SEBI, trading in margin is offered only for "Group 1 securities", what are group 1 securities? Do they include the penny stocks?

So far, i've been trying to learn trading using moneybhai, i always end up getting into the market in the right time with an average of 5% profit. However, even if the volume is above 50k, i'm unable to sell off the shares even if i put a "Take Profit" price or try to square off by selling the shares. I'm really frustrated at the illiquidity of the shares as compared to spot forex (illegal in India). My only prob is wit the illiquidity. What is the minimum number of volume to get a good liquidity?
 

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