How do you all feel about day trading and/or investing in penny stocks? ~~ J.G.

Day Trading: refers to the practice of buying and selling financial instruments within the same trading day such that all positions are usually closed before the market close for the trading day. Traders that participate in day trading are called active traders or day traders. Some of the more commonly day-traded financial instruments are stocks, stock options, currencies, and a host of futures contracts such as equity index futures, interest rate futures, and commodity futures. Day trading used to be an activity exclusive to financial firms and professional investors and speculators. Indeed, many day traders and bank or investment firm employees working as specialists in equity investment and fund management. However, with the advent of electronic trading and margin trading, day trading has become increasingly popular among at-home traders. WIKIPEDIA

 

Penny Stock: also known as a micro cap equity, refers to a share in a company which trades for less than $5.00. While this is the official definition, and is used by the US Securities and Exchange Commission, generally every full service or discount broker, and the vast majority of analysts and institutional investors, there are other more loosely held criteria applied by the general public and most retail investors. In other countries the term may be used differently, without reference to US institutions.

Some of these alternative criteria include:

• a price per share being less than $1, and as low as fractions of one cent
• a market cap of less than $50 million or less than $25 million
• trading on more obscure markets, such as the Pink Sheets.
  

While such definitions are sometimes used by individuals and retail investors, the various and loose unconventional definitions enjoy no consensus or accuracy.
As well, there are many limitations with the alternative definitions, as they often contradict themselves. For example, there are many companies trading for only a few cents with market capitalization’s of hundreds of millions of dollars, or corporations trading on the Pink Sheets but having share prices of $50 or more. WIKIPEDIA