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online stock trading, penny stocks, share trading, stock trading, stocks and shares, online stock brokers, investing in penny stocks


Since I wrote on my blog about trading penny stocks online, I've gotten a few emails about it, so it seems to have gotten a lot of attention.

People have been trading stocks online since the beginning of the internet, and it is now easy for anyone who wants to get involved to start trading online.

But there are a few things you should know before you start trading stocks. No matter how much you know or how much experience you have, trading stocks is always a gamble. You need money to invest, and it needs to be money you can afford to lose. Keep in mind the worst-case scenario, which is that you could make a terrible mistake and lose all your money overnight. If you don't want to read any more, you've been warned.

Penny stocks, in particular, have been written about a lot, and by people who are much smarter than I am.

If you like the idea of an exciting, risky way to invest, trading penny stocks could give you the rush you're looking for. It's pretty easy to get started, but you could succeed or fail just as easily.

First of all, penny stocks are usually stocks that trade for less than $5 per share. Some people think that $2 is a better measure than this arbitrary number, but no matter how you look at it, these are shares that are usually traded outside of the major exchanges. They are often unstable and hard to predict, and it is hard to keep an eye on or predict how they will do.

It is safe to say that buying stock for a few cents a share is the riskiest investment anyone could make. In fact, many experts would say that it is the most foolish thing anyone could do. Many people get burned because they give in to the temptation to buy thousands of shares for just a few cents. Keep in mind that the stock is cheap because it isn't worth much, and making a fortune on such shares is not the sure thing that some people will try to convince you it is. Most of the time, it's nearly impossible to predict how these stocks will do because there isn't enough information about the companies to do any kind of meaningful analysis.

Don't buy stocks just because a newsletter or email says it will be a good investment. There are a lot of sharks out there who will do something called "pump and dump." This is when they try to create unfounded hype about a stock in the hopes that people will rush to buy it, allowing them to sell their worthless holdings to people who don't know what's going on. You really need to be careful and do your own "due diligence." If you don't, you'll soon regret buying penny stocks on the spur of the moment.

It's not hard to trade stocks online. Once you know the basics of how it works and want to give it a try, you'll need an account with an online stockbroker.

For penny stock trading The service that Lowtrades.com provides is very good. You will need to mail in an application form to set up an account. This can be downloaded from their site as a PDF file. Once you've opened an account, you'll need to put money in it. The site has more information about how to do this. Then you'll be ready to trade.

In the simplest terms, you will tell your broker what you want to buy or sell through the online trading interface, and they will do it. The broker will charge you a small fee for each trade you make, whether you buy or sell. Most Lowtrades are between $5 and $10.

If you're interested in penny stocks, it's likely because you want to make money quickly. It is true that the payoffs can be huge, and it is possible to make hundreds of dollars in a single day. On the other hand, if you make a mistake, you can quickly start to lose money. Day trading is risky and doesn't always make money. Day traders buy stocks and try to sell them for a profit on the same day. This is an old strategy called "buy low, sell high." Obviously, if the price of a stock drops, you have to decide whether to sell it at a loss or keep it in the hopes that prices will rise again and you can cut your losses.

You have to realize that not every stock you buy will go up in value in a single trading day. This means that you could end up putting all of your risk capital in one company. Until you sell the stock, you won't be able to make any other trades. So, it's not a good way to trade to put all your eggs in one basket.

This can be a bit of a problem for people who don't have a lot of money to invest. It doesn't make sense to buy so few shares that even if the price goes up a lot, you'll only make a few dollars. Also, don't forget to take brokerage fees out of your overall profits. If you only have a small amount of money, you'll need to find stocks with reasonable prices that let you buy at least a few hundred shares, but not less than 100. For example, if you can buy 300 shares and the price goes up by 25 cents, you will only make $75, minus any commissions. This isn't exactly a life-changing amount of money. On the other hand, if the value of the stock goes up by $1, you get $300. The basic math is easy, but you need to think carefully about whether an investment is likely to be worth it compared to how much you can invest.

It's obvious that the more money you have to invest, the more you can make or lose.

Once you know what kind of account you want, it's not hard to open a trading account. Some brokers will ask for a minimum deposit for a simple cash account for an individual, while others won't. Look around and compare prices to find the best deal for you. Different charges will also affect your bottom line, so make sure you know how much each trade will cost.

Lastly, I'll repeat what I said earlier: don't invest money you can't afford to lose. Penny Stocks are a gamble, and you shouldn't start any kind of online trading if you're not willing to lose the money you put down. Sit down and think carefully about what you want to do and what you hope to get out of your investments. If you want to day trade, you'll need to be able to keep an eye on your stocks throughout the day. If you can't do this, you won't be able to sell when you need to, like if the price spikes for a short time.

If you want to start trading penny stocks online, you should learn as much as you can about the subject. There are many helpful websites, like AllPennyStocks.com, where you can start to learn. I've also included some helpful links below for those who want to learn more. Don't believe anyone who says it's as easy as falling off a log, though. If it were that simple, we'd all be millionaires by now.