Question by Joe Black: How Do I Trade Stock Online ?
Suggestions? I am interested in playing with “Penny Stocks”.
Best answer:
Answer by dusty_titus
Go to Yahoo finance – and check out the “banner ads” that show “e-trade.com” and click on, and you just set up an account.
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www.PennyPumpFinder.info – Penny stock investing is nothing like trading on the NYSE or the NASDAQ. You can forget about fundamentals and technical analysis can be tricky. People make huge gains in penny stocks simply by playing the pump and dump game. This is what you must learn!!! You get in during the pump and you get out before the pump turns to a dump!! A penny stock requires three things to be successful and it has nothing to do with the business itself 1. A stock promoter 2. A press release 3. momentum A stock promoter, like microcap millionairs or penny stock prophet (www.pennystockpro.info which is a great newsletter by the way and worth every penny!! Oh and he charges a measly one time fee of 97.00) will get paid by the company to hype the stock, this hype will further be reinforced by a press release touting something good about the company. This in turn creates the volume (momentum) to push the stock price up, sometimes hundreds of percent in a single day. You need to be apart of these penny stock newsletters so you can be informed before the pump starts. You also need a few more things to trade successfully and make a profit. 1. Never NEVER EVER place a market order on a penny stock!!! limit orders only!!! 2. ALWAYS ALWAYS ALWAYS have a stop loss!!!!! Never ever purchase a penny stock without a stop loss!!! 3. Do not be greedy!!! This will kill you!! Penny stocks are designed to be bought and sold within the same day!! You’ll be holding a super tanking stock …
You can play with them, just make sure the real money is money you can afford to lose.
To trade penny stocks select an online broker. You want to investigate what the fees are trading penny stocks. Some brokers do not allow investors to buy penny stocks. Sometimes the fees are out of sight on penny stock trades.
Penny stock trading is speculative. Do not bet more than you can afford to lose.
To trade on-line just open an account with any major brokerage firm since all such firms provide on-line access to their customers.
When you invest/trade in penny stock you should never put up more than you can afford to loose and you should assume you will loose it all. Unlike regular securities, penny stocks usually do not let you use risk cutting procedures (options and/or stop orders) since most are not traded in a regulated market place.
They say when you buy securities you have a 50%-50% chance of making money, when you buy penny stocks you have a 50-50-90% chance, 50-50 chance of making money and a 90% chance of loosing money.
When buying penny stocks, like any other security investment, you never invest 100% of you investing capital. Penny stocks are fun to trade, but you should never count on them to be considered part of your primary investment objectives.
All that said, here are some websites that you will find helpful
http://www.smallcapinvestor.com/
http://www.stockwire.com/
http://alphaking.com/
http://www.otcstockexchange.com/
http://www.mcapstocks.com/Default.asp
http://www.pinksheets.com/pink/quote/index.jsp
http://ragingbull.quote.com/cgi-bin/static.cgi/a=index.txt&d=mainpages
http://www.swingtrades.com/
http://www.thehotpennystocks.com/stock-picks/
Forget penny stocks, you dont need to play with those to make money when you can invest and speculate on more stable stocks. Read up on LEAPs and options and open an online brokerage account with a low transaction fee at a place like sogo or scottrade.
https://www.sogotrade.com/Setup/Default.aspx?rf=392837
You need only $500 to open an account without margin(extra money loaned to you by your broker to buy even more stocks). if you want an account with margin you need $2000. All of these online brokers allow you to buy and sell stock very fast in realtime for a fee. The fees range from $3 to $12 and more per transaction. I personally use sogo because they only charge $3 per transaction
Now, if you are new like me that sort of helps because it doesnt pain you so much when you do a LOT of trades. Other brokers charge you $10 or over per transaction so my point is that you can take advantage of the low fees and hedge yourself by diversifying your portfolio into more than one stock and also hedge yourself with puts and calls. Try doing some research on LEAPS and reading about options. That is a must if you want to be an investor.
Hit amazon and look for 5 star reviews on books. and get this book on options:
Option Volatility & Pricing: Advanced Trading Strategies and Techniques by Sheldon Natenberg.
And one last word of warning, never never buy and sell the same stock in the same day more than three times a week. It’s the PDT rule. Remember that rule, it’s important.
If you are interested in playing with “Penny Stocks”, its very easy, go for penny stocks sites like hototc.com, coolpennystocks.com or stockrich.com. For more you can go for coolpennystocks.com
You can trade stock online by visit scottrade .
i’m finding this very interesting, but i can barely hear you. could you repost with better volunme? I can’t promote this to my subscribers if they can’t hear either.