Stock Trading Strategy: 3-Book Bundle – Stock Market Investing for Beginners + Day Trading for Beginners + Penny Stocks + bonus content: Trading Psychology of Millionaire Investors pdfdrive com

Chapter 2
Getting Into the Trade
Now that you know a bit more about working with Penny Stocks, it is time to
work on putting some money into the Stocks that you would like to use and
making sure that you get the right Stocks that will help you to make the money
that you would like from this type of investment. This chapter is going to help
you learn how to get started with Penny Stocks so that you can see the profits
that you want in no time.
 
Opening Your Account
The very first step for you to do when starting on Penny Stocks is to open a
trading account. As an investor, you need to consider how easy it is for the
account setup, the customer service with the account, and any fees that are
associated with opening and running the account. There are times when a broker
will choose a fixed rate for a smaller amount of shares but this rate can increase
when you trade on more shares; depending on the type of trading that you do,
this could make a big difference in the profit that you make.
The good thing about working on a commission per share idea is that it works
well for investors who want to get into Penny Stocks but who don’t have a lot of
extra money for it. As an investor, you will need to shop around in order to find
the best brokers and the best trading accounts in order to maximize your profits
so take the time to look around and talk to a few different brokers to determine
which one is the best for you to get into.
 
Picking Your Penny Stocks
When you are ready to find a Penny Stock and make a decision, you will need to
choose from either the Over-the-Counter Bulletin Board or from the Pink Sheets.
You will find a list of Stocks that are available for you to purchase and you can
do your research and pick the right ones. Some brokers will provide you some
screening tools so that you are better in terms of picking the Stocks in line with
your risk tolerance level and your investing strategy.

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Since Penny Stocks are a very volatile investment, it is possible to make a lot of
money from your investment, but it is also entirely possible to lose a lot of
money in the process as well.
There aren’t a lot of people who invest in Penny Stocks, some of the market
players include money managers, index funds, and various mutual funds, which
is one of the reasons why Penny Stock market is so volatile. Since there aren’t
that many investors that go with this option, you may experience liquidity
problems at times. You may not be able to sell some of the Stocks that you own
because there just aren’t enough buyers available who would take your Stock at
all, much less at the price that you would like. You may have to take a big loss
and sell them at a much lower price you would like. But there is also a
possibility that these Stocks will go the other way and you are able to sell them
at a much higher value than you purchased them. But it is the job of the investor
to decide which way this is going to go before making a purchase of a Penny
Stock.