penny stock newsletter - Online Penny Stock Trading

How Penny Stock Screeners Should Be Used

As you strive to make the most of your penny stock investments you will want to take advantage of some of the tools available to you. One of these tools you should consider is a screener. Stock screeners help you look through a number of stocks to filter out specific ones through set variables. This can be a big time saver as you try to choose stocks that fit into your ideal trading plan.

There are a few different ways you can experiment with this to find the best fit for your trading strategy. You may want to consider a fundamental analysis or a technical analysis. Whichever you choose you can find stock screeners that are free or screeners that come with a fee. Learn more about the benefits of each type in this article.

How to Trade Penny Stocks

by Charles

In this segment I will offer an abbreviated summary of the actual penny stock trading process. Learning how to trade penny stocks is not that challenging from a technical perspective, however it is important to consider a number of things before you begin investing your money in this risky niche market.

The first step is to create a stock trading account with one of the online penny stock brokers. You will find many online brokers offering different services and charging different fees. The most common online brokers happen to be E*TRADE, TD Ameritrade and Scottrade but this does not mean they are the best brokers for each and every situation. Some contend that Zecco is a decent choice for novice traders because it is so inexpensive, but you need to look at each of the brokers to make your own decision of who is best for you.

Once you have your trading account set up you can start getting into the fun part of penny stock trading.

Penny Stock Fraud

by Charles

Be careful because penny stock fraud is frequent and pervasive. I don’t mean to scare you away from penny stock trading, however you need to realize that many unscrupulous individuals are out there eager to exploit newbies in this field.

The SEC (Securities and Exchange Commission) estimates that penny stock fraud costs the economy billions of dollars every year. As stocks not on the NYSE or NASDAQ often do not need to fulfill the same standards to trade within Pink Sheets or the OTCBB, they can be much more susceptible to being manipulated and falsified online.

While some microcap fraud may occur on the NASDAQ Small Cap Market, a vast majority of stock fraud occurs in the OTC Market. So proceed with caution and always do your due diligence when trading penny stocks.