Penny stocks do not actually cost a penny. Not when you are talking about penny stocks that a day trader would want. Day traders are looking at penny stocks that cost anywhere from $2 to $10 per share. When day traders talk about penny stocks, they are talking about cheap stocks that are traded on the NYSE or the NASDAQ. Those exchanges require your share price to be above $1 per share.
Many traders believe that they can jump into penny stocks and make money right away. But in practice, it is much harder than it looks to make real money from penny stocks.…