Penny Stock Investing For Beginners - Penny Stocks
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Posted On: 09/14/2013 10:49:13 PM
Penny Stock Investing For Beginners
Are you new to penny stocks or investing? Not sure where to begin? In this article I will be going over the key factors in beginning your venture into the penny stock investing world. First, Don't jump right into the buzz and search common search terms as “penny stocks to buy” or “hot penny stocks”. I am willing to bet you will not find what you are looking for. Second, never use stock message boards as a decision to buy or sell any penny stock. Penny stocks are very fast moving stocks and can rise and fall very fast. If you are sure you want to get into stock trading you will need to open an account with a online penny stock broker. These can range, The most popular ones being E-Trade and Scottrade. A good thing to know is not all online brokers will let you trade every penny stock or ticker. Next will be doing your research and trying to figure out where you want to begin and trust me your head will spin. I have personally always used stock message boards as a beginning point in my research nothing more nothing less. Your goal is to find out which penny stocks are hot but, not always the best penny stocks to buy. That stock might be hot tomorrow and dead the next day. So you will want to find that stock that is ready to rise not fall. First sign is if you see everyone talking about it you will want to find out why? Ask questions, do research and never be afraid to call the company yourself and ask questions. The work has just started, After you have started your research on the stock you are interested in it is time to get into the technical side of things. Charts, Stock charts also play a very important role in penny stocks. If that penny stock has ran for a few days there will be a sell off. Not a question of if a question of when. You want to make sure you find that stock first not last. Getting in and out early is key here and remember that learning stock charts will only help you before you decide which stock you want to invest in. You will find hundreds of penny stock newsletters or websites that guarantee to get you in the stock before anyone else with flashy text that says “small cap stock picks” “best penny stocks” and “penny stock picks”. This brings us into the next subject of penny stock promos and penny stock promoters. That's right, There is such a thing. Penny stock promoters, These are people that have been compensated in either cash or shares to promote a company. You will find many more promoters promoting penny stocks then any other stock out there. This is because these stocks are cheap and can move very fast with very little buys. Some stocks can raise up 100% with just a few hundred dollars and this is where the waterfall effect begins. People begin to buy and then they all run around telling everyone how hot this stock is and then everyone follows in. Before you know it that stock is up 200% but, someone just bought when that stock hit 200% now it begins to fall. That is not where you want to be. So let's go over a few key parts here before you begin.
1. Open a online brokerage account.
2. Find stocks and companies that interest you.
3. Begin research into that company. Remember, Call the company and IR firm (investor relations). Call the transfer agent (TA) Check filings, financials and company earnings.
4. Learn the chart and technical side of the stock.
5. Ask questions and verify. This is where stock message boards come into play.
6. Never invest more money than what you are willing to lose.
To be a successful penny stock trader you must have a strategy. Anyone who says they made millions their first trade is probably not telling you the truth. They might have made a lot of money or even millions from trading penny stocks but, chances are it was not their first trade that did it. Many small cap investors are what you would call penny stock day traders. This is because they are usually in and out of a stock in one day. This is a advanced level trader which we will get into much more later.
Stock message boards, I have used many stock message boards simply for discussing stocks and companies. I have always used message boards as a starting ground for my research. Many people on these boards have contact information in order to contact the company or managers directly. Investors Hangout is a great place for this. Remember, Ask questions there is never too many questions to ask when it comes to your money.
Investor
Are you new to penny stocks or investing? Not sure where to begin? In this article I will be going over the key factors in beginning your venture into the penny stock investing world. First, Don't jump right into the buzz and search common search terms as “penny stocks to buy” or “hot penny stocks”. I am willing to bet you will not find what you are looking for. Second, never use stock message boards as a decision to buy or sell any penny stock. Penny stocks are very fast moving stocks and can rise and fall very fast. If you are sure you want to get into stock trading you will need to open an account with a online penny stock broker. These can range, The most popular ones being E-Trade and Scottrade. A good thing to know is not all online brokers will let you trade every penny stock or ticker. Next will be doing your research and trying to figure out where you want to begin and trust me your head will spin. I have personally always used stock message boards as a beginning point in my research nothing more nothing less. Your goal is to find out which penny stocks are hot but, not always the best penny stocks to buy. That stock might be hot tomorrow and dead the next day. So you will want to find that stock that is ready to rise not fall. First sign is if you see everyone talking about it you will want to find out why? Ask questions, do research and never be afraid to call the company yourself and ask questions. The work has just started, After you have started your research on the stock you are interested in it is time to get into the technical side of things. Charts, Stock charts also play a very important role in penny stocks. If that penny stock has ran for a few days there will be a sell off. Not a question of if a question of when. You want to make sure you find that stock first not last. Getting in and out early is key here and remember that learning stock charts will only help you before you decide which stock you want to invest in. You will find hundreds of penny stock newsletters or websites that guarantee to get you in the stock before anyone else with flashy text that says “small cap stock picks” “best penny stocks” and “penny stock picks”. This brings us into the next subject of penny stock promos and penny stock promoters. That's right, There is such a thing. Penny stock promoters, These are people that have been compensated in either cash or shares to promote a company. You will find many more promoters promoting penny stocks then any other stock out there. This is because these stocks are cheap and can move very fast with very little buys. Some stocks can raise up 100% with just a few hundred dollars and this is where the waterfall effect begins. People begin to buy and then they all run around telling everyone how hot this stock is and then everyone follows in. Before you know it that stock is up 200% but, someone just bought when that stock hit 200% now it begins to fall. That is not where you want to be. So let's go over a few key parts here before you begin.
1. Open a online brokerage account.
2. Find stocks and companies that interest you.
3. Begin research into that company. Remember, Call the company and IR firm (investor relations). Call the transfer agent (TA) Check filings, financials and company earnings.
4. Learn the chart and technical side of the stock.
5. Ask questions and verify. This is where stock message boards come into play.
6. Never invest more money than what you are willing to lose.
To be a successful penny stock trader you must have a strategy. Anyone who says they made millions their first trade is probably not telling you the truth. They might have made a lot of money or even millions from trading penny stocks but, chances are it was not their first trade that did it. Many small cap investors are what you would call penny stock day traders. This is because they are usually in and out of a stock in one day. This is a advanced level trader which we will get into much more later.
Stock message boards, I have used many stock message boards simply for discussing stocks and companies. I have always used message boards as a starting ground for my research. Many people on these boards have contact information in order to contact the company or managers directly. Investors Hangout is a great place for this. Remember, Ask questions there is never too many questions to ask when it comes to your money.
Investor
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