Trading penny stocks 101
Getting started with penny stocks, sidestepping the common pitfalls, and finding the best investments, are all much easier than most people realize. In fact, if you can open an online bank account , you can just as easily be up and running trading low-priced shares. Most investors are anxious to get their money into the markets.
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They want a few hundred dollars to start changing their life. You should always start with no money and zero risk. Paper Trading is a wonderful method to see how much you would have made or lost.
PennyStock - Lesson #1
There isn't any rush to skip this step, because the penny stock market will always be there waiting for you. You do not need fancy software, the best broker tools, or the latest apps.
You need a pencil and a piece of paper. Paper Trading, instead of jumping in before you can demonstrate theoretical profits, is and will be the single best decision you will ever make in penny stocks. Sidestepping the most common penny stock risks is very simple.
So simple in fact, that having made a few of them, the 14 year-old version of me feels pretty stupid. Beyond the obvious reasons to keep your rent check and grocery money out of the latest 5 cent penny stock, there is an abstract, albeit widely unknown, benefit.
The Lowdown On Penny Stocks
Investors who feel stress, frustration, impatience, and obsession with their investments tend to act emotionally , rather than meticulously. Trading decisions are typically made for the wrong reasons, and derive the wrong results. Risk money, on the other hand, results in a looser, more patient, and wiser investment style. With this attitude, better decisions are made. This is both a theoretical truth, and an observed fact we've encountered over the course of many decades and 40 thousand subscribers.
All you need to trade shares of any kind is an online discount stock broker.
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Opening an account typically involves filling out a few forms, and most people are up and running within days. Depending on the policies of the broker you choose, there is a required minimum amount of cash which needs to be deposited.
This ranges from zero to tens of thousands of dollars. Once the money is deposited, and your account is set up, you will be able to use those funds to buy and sell stock Whether penny stocks or large-cap Blue-Chip corporations, bonds or real estate, the best investments are the ones which increase in value. By choosing low-priced shares from among the various investment options , you gain the benefits of quick, substantial price moves.
Of course, the name of the game is identifying the shares which make moves in the direction you hope! There are plenty of penny stocks which will rise in price, but it is important to know how they can be found. Everyone has their own style, a unique learning curve, and independent skill set. Start smart, use only risk money, and learn how to find the best investments before you begin.
Investing is simple, and even better, it is fun. When you turn a few dollars into something more substantial, you will be absolutely hooked! Search the site GO. Penny Stocks Basics Advanced Trading Fun With Penny Stocks.
Updated August 12, Before You Begin Most investors are anxious to get their money into the markets. Stages to Penny Stocks Start smart, use only risk money, and learn how to find the best investments before you begin. Get Daily Money Tips to Your Inbox Email Address Sign Up. There was an error. Please enter a valid email address. Personal Finance Money Hacks Your Career Small Business Investing About Us Advertise Terms of Use Privacy Policy Careers Contact.