Learn How To Buy Penny Stocks In 3 Easy Steps
Learning how to buy penny stocks is very easy…
There are a few things you need upfront but once you have everything organized and ready to go, you can buy and sell penny stocks in just a few minutes.
You will need the following things:
- A brokerage account (there are plenty of options)
- 30 seconds and an internet connection (your smartphone can work for this)
- A stock you want to buy or sell (there are easy ways to find these)
Let’s examine what you will need in a little more detail.
A Brokerage Account
In order to trade penny stocks you will need a brokerage account. If you are unfamiliar with what a broker is, according to wikipedia it is:
A broker is an individual or party (brokerage firm ) that arranges transactions between a buyer and a seller. and gets a commission when the deal is executed.
Basically a broker is how you buy and sell stocks. An online broker tends to be the most common kind to use for penny stocks and you probably already know 2 or 3 of them, they advertise on TV constantly.
I use and recommend Etrade. but there is also TD Ameritrade and Scottrade among others.
For the most part they all offer the same basics services. They will all allow you to buy and sell penny stocks with ease. When I first started out and even today I use Etrade.
I think that Etrade offers one of the most complete packages for anyone just getting started. It’s easy to use and if you ever have a problem the phone support people are very friendly and easy to work with.
No matter which broker you use, you will need to deposit some money into your account before you can buy your first stock. In the case of Etrade, the minimum deposit is currently $500.
I started with $1,000 and was able to turn that into $3200 within a few weeks so I’m sure that you will be able to do the same.
So now you know that you will need a broker and you have some options that you can get started with.
An Internet Connection
While you could be reading this page from a library, I’m going to assume that you are reading it from home and already have an internet connection.
The important aspect is that you will have access to the internet during the day. See, the stock market is open from 9:30 AM – 4PM Eastern Standard Time, so you will need an internet connection during those times in order to place buy and sell orders and make trades.
In some cases you may want to buy and sell a stock in the same day which makes having access to the web during the day that much more important.
When I started out I used my smartphone for a lot of what I did. Etrade for instance has a mobile app that made the whole process really easy to do. It has nice big buttons so there’s virtually no way that you can screw something up while using it.
A Stock You Want To Buy Or Sell
This is where a lot of people new to penny stocks get stuck. See finding good, profitable trades can be very confusing. There are all sorts of factors that can go into selecting a good stock – and if you get it wrong you can lose thousands… So Picking The Right Stocks Is Important!
A lot of pro’s look at technical analysis and ignore fundamental analysis completely. Others do the opposite and look only at the fundamental analysis of a company. Some do both.
It becomes hard to keep track of who is doing what quite honestly.
No matter how they are coming up with picks the most important factor is that they are getting them right more often than not.
If technical and fundamental analysis sound like big, scary terms to you – don’t worry, you aren’t alone.
When I first started I heard those terms and just about gave up thinking that there was no way I could do this. Luckily I stuck with it and you should to. Once you get your head wrapped around it, they just become fancy words.
How To Make Money From The Very Beginning…
Investing is not a game. You can loose your entire investment if you aren’t careful.
What I did (and it works) is seek the advise of a pro from the very beginning. Sure you can try to do it on your own but there’s a good chance you’ll end up making nothing while you are busy learning the rules of the game.
In my case, I had no idea who to trust. If you are brand new to penny stocks I’m sure you are exactly where I was. It’s one of the reasons I wrote this tutorial – to help newcomers who don’t know where to turn.
Nathan’s advice turned out to be very good but it only showed up one day a week. When you are new to trading his service is great because it doesn’t overwhelm you with too much to handle.
The only ‘bad’ thing I can say about it is that he doesn’t teach you a lot about penny stocks. It’s purely one-pick-per-week and there is no actual teaching that goes on. At first that didn’t bother me at all…
While I was happy with using the Penny Stock Egghead at first, I wasn’t learning a lot about Penny stocks and I know that if I was going to be in this for very long that I better know what I was doing…
So I began to look around for something that had training in it. Ultimately I think that you should look for training right from the start.
The best investment is any investment that you can make in yourself and that’s where Timothy Sykes comes in.
If you watch TV at all you may have heard about or saw a program called ‘Wall Street Warriors.’ It was hosted by a guy called Timothy Sykes and he was best known for turning a little over $12,000 into more than $1.6 Million Dollars!
He is a part of a site called Profit.ly and it costs about $99 a month. I realize that sounds expensive but once you start making money trading penny stocks, $99 is really cheap for the education you get from it.
Once I started learning more about the game from them I was able to make some profitable plays on my own.
You need to first open a brokerage account. As you already know, that’s not a big deal. I use and like Etrade. That’s who I used when I was first starting out and they are very newbie friendly.
Once you have your brokerage account open then you need to have a way to access it during the day. Like I said, I used my smartphone at first and it worked just fine. Etrade’s mobile app is very easy to use.
Then you need to find stocks to trade. In my case I traded the stocks the Nathan and Tim recommend and it worked out just fine…
I don’t see any reason that you can’t do the exact same thing I did and attain success for yourself.
IF YOU HAVE ANY QUESTIONS…
Leave me some comments and I’ll do whatever I can to help you get started