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Buying Penny Stocks Online - 4 Things You Need To Know
By admin | March 1, 2008
Buying Penny Stocks Online can be both fun and easy. There are just a few things you need to know.
1. You Can Not Buy Any Stocks without going through a licensed and registered brokerage firm. So Buying Penny Stocks Online means you will have to find a firm that will place the trades for you.
2. Use A Discount Broker. Do not use a full service Broker. You use a full service broker only when you want their advice and guidance.
And when it comes to penny stocks, this is something they simply cannot do. All of the Major Brokerage firms prohibit their brokers from even talking about penny stocks. And they have no capabilities to perform any kind of research or analysis for you.
They will gladly take your money to place the trades, but that’s all you will get: is the trade itself.
Using A Full Service Broker means you are paying the much higher fees without getting any of the benefits. If you are buying a 10 cent stock, that translates into a loss of 10 shares for every dollar you overpay or 100 shares for every $10.00. The solution is to use a “Discount Broker.”
The discount brokers offer fully automated systems, which will allow you to place your trades online - with no broker involvement. Not involving a broker is the reason the fees are cheaper.
You simply put in the symbol of the stock you wish to purchase, how many shares you want to buy, and the price you are willing to pay. Submit the order and wait for it to be filled.
3. You Have To Fund Your Account. Once you have chosen the “Discount Broker” you are going to use, you will have to “fund your account.” That means, you will have to put money into the account before Buy Penny stocks Online.
The exact amount required to fund your account will vary from broker to broker. Keep in mind that in most cases, the more you deposit, the less they charge you for your trades. So shop around and find the one that meets your needs.
4. Choose a Penny Stock Newsletter & Follow The Advice & Guidance You Are Paying For. This is a must have if you want to experience any degree of real success.
If your plans are to just figure it out on your own as you go, save your money and look for another type of investment to get involved with. Because going it on your own without key training in the right areas, means you are going to lose your investment.
Any of the newsletters will work just fine. They are all very good in their own right. Just find the one that feels right for you and that you can reasonably afford. Don’t worry about the “scam” reports. None of them are scams. These “reports” are just marketing ploys to point you in another direction.
For more great tips on Buying Penny Stocks be sure to read “Don’t Make The Same Mistake George Made.”
Which Newsletter is right for you? Only you can decide that. For a side-by-side comparison of the top rated Penny Stock Newsletters, Click Here.
Tags: buying penny stocks
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Topics: Finance |