What is Penny Stock Volatility?

Those newer to any type of stock investing and trading usually have a core list of lingo that stumps them. And penny stocks trading is no different. Today’s question has to do with penny stock volatility. After answering the question, I’ll also present you with some other key stock terms to know. Read more

How Do I Buy Penny Stocks?

For many, buying and trading penny stocks seems complicated, but the basics are very simple once they are laid out. Let’s jump right into today’s penny stock investing question.

Q: How Do I Buy Penny Stocks

A:

Buying penny stocks begins with one critical first step. You need capital to invest. Never trade with capital you can’t afford to lose. There are no guarantees in life, especially in the penny stock market.

Once you have capital in hand, you’ll need to setup an account with a stock broker. There are many out there to choose from. The best broker for your penny stocks account will depend on your capital, your trading strategy and your needs. Here’s a penny stocks broker review we did that you might want to check out.

After your account is setup, you can begin buying and selling penny stocks. We recommend looking for penny stocks that are listed on NASDAQ or the OTC. For more helpful tips, read Buying Penny Stocks Online. Penny stocks work like any other stock for the most part. You decide how many shares you want and pay the asking price plus a commission. For example, let’s say Company XYZ is has an ask price of $1.02. Your broker charges $7 per trade and you want 100 shares. You’d pay $109 ($102 for the 100 shares and $7 for the commission).

Picking the right penny stocks can be tricky. Here’s a great penny stocks picks article that lists four successful tips for picking those winners.

If “How do I buy penny stocks” is still unanswered in your mind, I invite you to read the many articles on Penny Stocks Capitalist, so you gain a solid understanding of the stock market from a penny stocks perspective. Good luck!

Penny Stocks Trading Question #1

As part of a new series on Penny Stocks Capitalist, we’ll be posting answers to questions we frequently receive or see out there in penny stock land. If you have a question about anything related to penny stocks, please email QA@pennystockscapitalist.com.

Q: Hey guys, can you give me some quick advice about how to start investing in penny stocks? I have a little bit of money (not a fortune like those guys on CNBC). Are there books I should buy or what? Thanks!

A: First off, welcome to the profitable land of penny stocks. As with anything progress always involves risk, so my first piece of advice is to never use capital you are prepared to lose. This is extra true for penny stocks.

Your first move should be to sign up to our free penny stocks newsletter. When you do, you’ll get a PDF sent to you that has a lot of great starter information.

Next, you need to open an account with a broker. We did a review of Scottrade you might be interested in. I recommend going with someone like them to get started. You can always switch later when you figure out what you want in a broker.

After that, make sure you read many of the articles on Penny Stocks Capitalist. By doing just that, you’ll get a better start than most people who spend thousands on books and videos.