Where to Buy Penny Stocks Online

So you’re all excited about the world of penny stocks and all the profit potential they hold, but there’s one daunting question left to answer. Where to buy penny stocks online?

Buying Penny Stocks Online – The Wrong Way

The absolute worst thing you can do is opening up an account to buy penny stocks with a shady or little-known online stock broker.

If a deal (or fees in this case) seem too good to be true, they probably are. Let’s be realistic here. You can afford to pay the fees from a good, well-known online broker and still make money.

The Internet is littered with online stock brokers that have no history, no reputation and are not stable. This is your money we’re talking about here. Don’t take on more risk than is necessary. Use a good broker.

Penny Stock Broker – Who to use?

If you recall, the focus of Penny Stocks Capitalist is on what the “real” term of penny stocks implies: “penny stocks are low-prices (below $5) speculative securities.” Now, we can continue on and add “of very small companies” to that description, but I tend to look more at stock prices than company size.

There are many reputable stock brokers online. I recommend you use one of them that best suits your overall investing needs. Scottrade is an example of on good online stock broker. The fees are decent and their system is solid.

If you want to focus your trades on stocks under $1, Scottrade’s fees are a little more than their advertised $7 a trade fee.

Basically, when deciding where to buy penny stocks online you want to make sure your trades are executed fast and more importantly that your money is safe.

Online Penny Stock Trading : 7 Simple Rules for Better Results

Online penny stock trading can lead to great rewards, but like any financial investing, it can lead to ruin if you’re not careful. I’ve traded stocks online of all sizes and I’ve been successful at it by following some basic, simple investing rules.

While the penny stock arena has some similar functionality as any typical stock buying and selling, there are some unique characteristics that you should know—especially if this is your first time engaging in online penny stock trading.

Rule One: Penny Stock Fraud – Pump and Dump Awareness

Unlike many stocks in the market, penny stocks are more susceptible to fraud. Typically, you can drastically reduce your chance of buying a bogus stock run by only buying stocks that trade on the major exchanges, such as NYSE and Nasdaq.

The pump and dump scam is easy to explain. First, a stock is talked about in as many channels as possible (penny stock forums, email, etc) to get a buzz going. As people buy the stock, it rises. At some point the originators sell it off and those who bought into the scam are left holding the bag.

Rule Two: Stock Research

This followed up rule one. Learn to do your own research. Even if you’re not a business wiz, just knowing a little bit will help. When someone tells you Company X is going to explode, find out why.

It’s easy enough to find information on a company. And if you can’t find it, move on.

Rule Three: Online Penny Stock Broker

Don’t get suckered by “unknown” brokers offering amazing deals. Find yourself a good, well-known online stock broker and go with them.

Rule Four: Don’t Get Married

Sometimes you’ll invest in a stock that starts moving the wrong way, has had its run or is just plain stagnant. If logic is telling you to get out, sell it. Keep emotional attachments out of transactions.

Rule Five: Penny Stock Software

Whatever interface your online stock broker provides should be more than enough for your trading purposes. Typically, stock software that gives picks doesn’t work too well. If that’s what you want, look for a good newsletter or service.

Rule Six: Google Alerts

Yep, Google can be an awesome everyday tool for investing. By using their “alerts” service, you can be notified whenever Google finds news, blogs, links or Web pages that are about whatever you wish to know about. You can put in a company’s name, domain name or whatever.

Just type in Google Alerts into the search engine to see the link to use if you don’t know already.

Rule Seven: Play with Speculation Money

This rule applies to all investing. Progress always involves risk. As such, you shouldn’t invest with any money you’re not 100% willing to lose. By actually following this rule, you’ll be more likely to keep emotion out of your transactions, which can yield better profits.

Buy Penny Stocks Online – First 5 Steps to Penny Stocks Trading

Ok, so you know trading penny stocks can be very, very profitable and you want to get in on the action, but you’re not sure of where to start. Here’s a quick 5-step guide to help you buy penny stocks online. It’s a very easy process that anyone can do.

If you already have an account with a penny stocks broker and know the basics, this won’t help you much. This article is about the 5 basic steps to getting setup for online stocks trading.

Buy Penny Stocks

Ok, let’s get started with the 5 quick steps to getting setup for stock trading. By the way, this applies to any online stock activity, not just penny stocks, so if you wanted to trade stocks of bigger companies, such as GE, Microsoft, Google, etc, you’d follow the same process.

Step One: Stock Broker Account Creation

The first thing you need to do is setup an account with a penny stock broker. Find one that meets your needs. If you’re just starting out, I highly recommend you go with a well-known stocker and that you try to trade penny stocks that are in the $1 – $5 range.

Here are related articles to help you further:

Penny Stocks Brokers – How to Choose the Right One

Penny Stock Broker Review – Scottrade

Step Two: Stock Broker Account Funding

Once your account is created via an application, you’ll need to fund it. There are usually various ways to do this. For instance, you could send a check into the main office.

Bank wires are another option. If you’re unsure of the stock broker (features, trade execution, unknown, etc), you should send a small amount. You can always add more later.

Step Three: Penny Stock Selection

Ok, you’ve got the account setup and funded. You’re now technically ready to trade. However, you need to find stocks to trade.

This can be the hardest part for both new investors and those going into a new area. Penny stocks add a little more difficultly, because the companies aren’t usually as known.

I’d pick out an industry or “function” and start looking for penny stocks. An example would be oil penny stocks. Here’s a link to an article on that: Oil Penny Stocks

Additionally, you can monitor stock news, press releases and picks at various penny stocks sites and forums.

The goal at this step isn’t to execute the trade just yet. You just want to familiarize yourself with some stock names for further review.

Step Four: Penny Stock Research

Once you have some penny stocks you like, it’s now time to research potential trades. Usually, your account will have the ability to track stocks. I’d recommend putting the stocks you want to follow in the tracking mechanism.

It makes it easy to spot activity. Researching a penny stock can take more time than researching a “regular” stock, because there’s usually less news, financial data, etc out there.

Step Five: Trading Penny Stocks

Once you have a stock you like, it’s time to execute a trade. You’ll be paying whatever the ASK price is if you put in a market order.

I recommend always using limit orders. Put in the price you want the stock at and let it go. The only way I’d break this rule is if there was a stock taking off and rising by the minute, but that’s a less-likely scenario in the penny stocks arena.

After your trade is executed, you’ll own shares of the stock and it’s now time to monitor the stock often. As a rule of thumb, I like to have an “exit price” in mind before I buy any penny stock. For instance, I might buy a penny stock at $1 per share today with the idea of selling it at $1.50 per share. When it hits that price, it’s an automatic sale.

Any adult can buy penny stocks online with ease. It’s nothing to be scared of. At the very least, get your penny stocks account setup and going.

Penny Stock Picks – 4 Proven Tips for More Successful Trades

I think one of the problems most penny stock traders (and investors) have is they think that penny stocks are somehow different from “normal” stocks. Whether you get penny stock picks from a penny stocks newsletter or a crystal ball, it’s the same as getting stock picks on CNBC. You’ve got to follow some steps before putting your capital to work.

Penny Stock Picks

TIP ONE: What do they do?

This might seem obvious to some successful stock players, but before buying stock in any company make sure you know what they do (in general). You’d be surprised, but knowing this could actually keep you from making a bad trade.

Is their main product/service heading for a downturn? Is it going to heat up?

TIP TWO: Is the volume there?

Any penny stock trader needs to know the volume of the stock. The price, research, potential and all that jazz doesn’t mean a hill of beans if you can’t get out of the stock when you want to. If a stock is trading a few share every lunar eclipse, walk away.

Make sure you the penny stocks you like allow you to get in and out fluidly. There’s no time to dillydally around. If you get locked up in a stock, you can lose a lot of capital.

TIP THREE: No information equals no trade.

So you’ve found the next hot penny stock pick from some penny stock forum out there and are ready to jump in. There’s just one problem. You can’t seem to find any real information on the company. What do you do? Pass!

Look, in this day and age, there’s no reason why you should even think of buying penny stocks for a company that doesn’t have at least some basic information online. You should also be able to find information on that company from other sources.

There’s more than enough penny stocks in the world to buy.

TIP FOUR: Don’t skip research.

The theme of this article has been on penny stocks research. Whether you’re buying a hot tech stock, penny stock or a well-known stock, do your research always.

It doesn’t matter if you’re investing $100 or $100 million. You need to do your research. Want to know the secret of truly wealthy people? They value each and every dollar they have.

Part of your research can be subscribing to hot penny stock picks newsletters & services, generally penny stocks newsletters, stock RSS feeds and more. I also recommend using Google Alerts for a constant barrage of juicy information on a company, industry or topic.

Penny Stock Trading – Fastest Way to Millions in the Stock Market?

There’s a lot of debate as to what is the fastest path to making millions in the stock market. If you’re starting with just a little capital, penny stock trading can certain pay huge rewards.

What exactly is penny stock trading though? Actually, if you buy a stock with the intent to sell it in a short period of time (minutes, day, weeks, couple months, etc), you’re basically a trader. A stock investor is typically someone who will buy stocks in a company and let them sit there for at least a year—usually many years.

I’ve made big returns on penny stocks with one trading day and I’ve had others that were simmering for months before they bubbled up.

Perhaps a better question is simply about the profitability of penny stock trading in general. After all, the real goal to wealth building is to find a vehicle that makes a profit and then improve or replicate that vehicle. While grand slams are great, most wealth is built through a constant barrage of profitable singles (if I can steal some baseball terminology).

I think researching penny stocks is more vital than anything else. Many stock traders just look for charts and technical items, but if you look at penny stocks that experience 100%, 500%, 1,000% and more growth, it was because of the company and not because the stock hit some technical indicator.

In other articles, we’ll talk about penny stocks and about things to look for. One idea is to look at the big companies and see who they are dealing with and what they are dealing in. That’s how I identified one penny stock that yielded me 1,000% profit when I dumped it.