A big question that is trending among day traders who trade penny stocks is should I get out of the stock market? The answer to this question is pretty easy, but it depends on perspective. If you are day trader who hasn’t taken the time to get to grips with the stock market and penny stocks then clearly the answer to the question, should I get out of the stock market is a big fat YES. But that person would be what most Americans call a loser, a quitter, someone who doesn’t deserve to take part in the American dream. No individual who scurry’s at the first sign of failure should be trading penny stocks on the stock market anyway. The truth is that once you understand how the stock market works there’s no reason to ask should I get out of the stock market. Here are 2 big reasons to stick it out with the stock market.
Should I Get Out The Stock Market – Reason To Stay #1
Penny stocks, due to their inherently volatile nature, are capable of turning momentum on a dime and delivering massive returns. A penny stock can be taking days, sometimes even two weeks worth of losses only to experience a change in fortunes on a massive upswing. Day traders who fail to grasp this important truth almost always are not around to benefit from these shifts in momentum. As a result they come into trades when everyone has almost finished taking profits. These are the traders who go into a 80 RSI stock on the hope that they might be able to squeeze out one last rally before the inevitable downturn. These exotic rallies do occur; but only once in a blue moon. For this reason it’s important for day traders to hold their nerves and not entertain defeatist questions like should I get out of the stock market.
Should I Get Out The Stock Market – Reason To Stay #2
Small-cap stocks are printing huge performance gains in 2018. Since the 2016 election stock overall have added nearly 4T in value so it would be crazy to exit the stock market right now. The biggest beneficiaries to that massive inflow of capital are the smaller companies, the penny stocks if you will. Access to such a huge pool of capital means more and more investing attention and even greater opportunities for penny stock day traders to capitalize. To illustrate the point consider this. Last month several growth companies joined the Russell 2000 Index. The Russell 2000 monitors the performance of small-cap stocks so it was a huge announcement when VBI Vaccines, Inc. (NASDAQ:VBIV) announced that it was joining the Russell on June 26, 2017.
Smart investors who don’t entertain the question, should I get out of the stock market, would no doubt have felt good about the prediction posted by Investing.com about the Russell 2000. In Investing.com’s estimation, a rising Russell 2000 is bound to bring the rest of the stock market with it. In this case, penny stock day traders would be pleased to see that small-cap companies are the proverbial tides that raise all boats.
Those are two powerful responses to the question should I get out of the stock market. They are responses that any sensible day trader can use to assuage doubt, fear, stock market anxieties or any other obstacle that could get in the way of penny stock success.