Successful entrepreneurs are always on the lookout for new income-generating ideas, including trading penny stocks. However, many are turned away by the notion that a full-time commitment is required.

But what if we told you that trading penny stocks is an attractive side hustle that can take up as little as a few minutes or as much as an entire day — and everything in between.

How Entrepreneurs Can Trade Penny Stocks As A Side Hustle

Interested in learning more on how to take advantage of explosive growth potential in penny stocks from the comfort of your work office? Read this guide to see how this is possible.

Trade Penny Stocks When You Want

Professional day traders that don’t rely on other forms of income to pay the bills have no other choice but to be at their desk throughout an entire trading session. Entrepreneurs can’t commit to being in front of their screen for the majority of the time when the stock market is open.

To be clear, there is no fixed schedule for when a part-time day trader must be at their desk. In fact, there is no definition of what constitutes part-time penny stock trading in the first place.

For some, trading penny stocks on the side is something that takes a few minutes each day, regardless if it is in the morning or afternoon. Others block off 30 to 45 minutes from their calendar to ensure they are trading penny stocks when the market is most volatile between 9:30 AM and 10:00 AM.

Others can keep their trading platform running in the background or on a different computer monitor so the penny stock trading action is always within arms-reach. Some days would see zero trades and one could in theory day trade for an entire session if their work schedule is flexible enough.

Trade Penny Stocks How You Want

Penny stock traders mostly agree that a penny stock refers to shares of a company that trades for $5 or less. But there is no general consensus on the holding duration for a transaction to be considered a “trade” instead of an “investment.”

While this debate will continue with no resolution for years, for the purpose of simplicity we will state that a penny stock trader can place as many or as few trades as they want. The duration of the trade can last seconds to months and in some cases even more than a year.

The reason why an entrepreneur decided to start a business is to be their own boss and either challenge or break existing rules and norms. This should apply equally to all income-generating initiatives, be it trading penny stocks, investing in real estate, or helping a buddy out with their own business idea.

Of course, buying and selling penny stocks for a few seconds requires a different approach compared to holding them for months.

Very short-term penny stock trading is based on charts, patterns, technical indicators, and other factors that can change on a whim. Longer-term penny stock trading requires more research into identifying a hidden gem that can take advantage of a catalyst over a longer period of time.

Each individual entrepreneur must determine what time frame and trading style fit in with their schedule. The reason why this is vital is simple: a busy entrepreneur that trades momentum penny stocks with expectations for a quick gain can find themselves distracted with their regular responsibilities.

When this happens, a profitable trade with a clear exit point can quickly transition into a losing trade.

Informing staff during an unscheduled meeting that a five-minute break is required to check on a penny stock is unprofessional. Similarly, constantly checking trading action on a smartphone or getting bombarded with alerts can become a distraction.

Keep in mind, this is a side gig and not meant to replace day-to-day duties associated with running a business.

What Happens If You Get Distracted

Below is an ideal example from Thursday, March. 18 that shows what happens if an entrepreneur’s trading session is interrupted.

A penny stock company called PhaseBio Pharmaceuticals (NASDAQ: PHAS) closed the day prior at $4.31 and announced on Wednesday the pricing of 16 million shares of its stock at $3.50 per share.

On Thursday the stock opened much closer to the offering price at $3.70. But after 10:00 AM the stock started to rally on volume and shares briefly traded in the green for the day.

Momentum penny stock traders who bought shares at say $4.00 would have been wise to sell it for a 10% gain 10 minutes later. As a side gig, a 10% win on a penny stock trade is quite impressive and if successfully duplicated many times over a year, the profits will become substantial.

But if the busy entrepreneur was called into a meeting after entering the trade, chances are they will miss out. This also goes to show how penny stocks move hard and fast and a 15-minute distraction means the window for a good profitable trade is essentially erased.

But there is an easy fix to this dilemma: limit orders. A limit order is an order to buy or sell a stock at a certain price. If the entrepreneur had to leave their desk for any amount of time, they can place a limit order to sell PhaseBio’s stock at $4.40.

The order will only be executed if the stock trades at that level. Problem solved!

Long-Term Trades Require Less Focus

Busy entrepreneurs that are keen on playing penny stocks can still take advantage of the explosive growth potential. As is often the case, momentum in penny stocks can last a few hours and in many cases, it can last a few days, weeks, or even months.

If an entrepreneur finds themselves up 600% on a major penny stock winner, there is no immediate need to watch the stock on a second-by-second basis.

Naturally, it is up to each individual penny stock trader to decide for themselves when they want to sell a penny stock and bank their profit.

This method is a lot more convenient for the busy individual simply because it requires minimal to no time effort. Checking a live price of a penny stock even a few times a day through text alerts or glancing on a computer screen is negligible.

Below is an example showing Plug Power’s one-year chart. Despite the stock peaking at around $75 and falling back to around $36, shares are still up more than 1,000%.

Conclusion: Don’t Neglect Your Real Job

Trading penny stocks as a side hustle should remain exactly that: a side gig. Anyone that wants to switch career paths and dedicate 100% of their time and effort to trading penny stocks should consider the merits and drawbacks before making major life decisions.

Penny stock trading on the side can be fun, exciting, and certainly lucrative. Just don’t let it distract you from your true obligations of running a company efficiently and profitably.