There are also brokerage house's where you can open up an account to
do nothing but day trade your penny stocks. It normally takes $25,000 to $100,000 to starttrading at one of these firms. The main difference between these firms and others is that you'll be trading on the state-of-the-art SOES system.

This is the Small Order Execution Market. It was put in effect in 1985 and
made mandatory for use by all market-makers after the 1987 stock
market collapse. This system allows the small trader to execute a trade
without being subject to any market-maker misconduct.

Their is no discrimination in filling orders with this system. You trade on a
level playing field. This is true for large or small traders. All bid/ask prices
on listed stocks are electronically posted on a computerized electronic
order system. You can have an order executed in a matter of seconds.

SOES traders make their money by monitoring the spread prices posted
by market-makers. If one market-maker shows a bid/ask price that's lower
than another market-maker, then the SOES trader will buy at the posted
low price and immediately sell it to a maker with a higher posted bid/ask.

This is instant trading. All you do is push a button. Most of these SOES
trading firms have 20 to 30 on-site computer trading terminals. You pay
your money to open an account, you watch other people trade while you
go through the learning process, and then you sit down for you turn.

I'm not a gambler. Buying and selling small stocks is a calculated risk that
I find acceptable. SOES trading is a little too much like Las Vegas if you
ask me. The reason I mention this type trading at all is that you need to
know what's going on in the market.

You could end up being very good at this type trading. Many people have
made large amounts of money doing this. It's not uncommon for a trader
to sit at one of these day trading firms and make 60 to 70 trades a day.
Profits vary from $125.00 to $250.00 on a typical good trade.

Not every trade is a winner, but on average, the good traders average as
high as 75% winning trades. The main reason it takes so much money to
get started is that most of the traders follow the higher priced stocks. It
takes a lot of money to buy a lot of shares, so think long and hard.