Blog - Online Penny Stock Trading

Penny Stocks Can Be A Drop of Rocket Fuel

Penny stocks are known for their high level of risk and volatile behavior. They are very unpredictable and tricky so many investors warn against them. After all do you want to leave your investment portfolio to chance with something known to be risky and volatile? While they may be risky they also have the potential of providing great reward so you may not want to discount them completely.

Take a look at these three investment scenarios to see what could happen if you balance your risk and reward wisely.

3 Things To Consider When Choosing A Penny Stock Broker

by Charles

Choosing the right penny stock broker can help make or break your successes and your profits. You want to watch out for certain red flags that are a sign of a questionable broker all while considering some of the basics like required minimum account balance. In this equation there are three specific things you should research before you commit to a broker. Understanding these three things and why they are important will help you increase your profits in this fast-paced niche of stock trading.

Paper Trading Penny Stocks

by Charles

If you’ve decided to start trading penny stocks you may be excited to jump right in and get started, but this can be a mistake. It is best to start paper trading so you can learn this market and make mistakes without them costing you a lot of hard-earned money. These stocks are very different from traditional stocks and although there is a lot of hype about the possible success in this market, there is a learning curve and it is better to learn through practice.

Paper trading is a good idea for anyone who wants to start trading stocks. It will provide you with the ability to go through the motions of buying and selling stock to see how you would do if you had invested real money into them. To get the most accurate picture of how you would do, it is important to track everything including fees, limit price and exit price. Take this seriously and use it as a tool to help you learn and prepare for the real thing.

There are a few specific things to consider when you get started.

Penny Stock Scalping

by Charles

There is a spread on all stocks which is the difference between what people are selling stocks for and what people are buying stocks for. When stocks are low value and thinly traded this spread can be somewhat large as a percentage of the value of the stock. Scalpers attempt to buy towards what people are asking to buy for and sell towards what people are asking to sell for. Often this requires a little patience or a good understanding of the direction of the stock by the orders that are executed at the moment.