Table of Contents
- 1 So, what are penny stocks – and can I make money off of them?
- 1.1 What IS a Penny Stock?
- 1.2 How to Buy Penny Stocks Online
- 1.3 Step 1: Select an online broker.
- 1.4 Step 2: Fund your trading account with the broker.
- 1.5 Step 3: Research Research Research
- 1.6 Some of the free stock pick sites I like are:
- 1.7 My favorite paid stock picking services are:
- 1.8 Step 4: Select the Penny stocks to Buy, and make your purchase.
- 1.9 Step 5: Monitor the stocks daily, or even hourly – Sell, and make a profit! $$
So, what are penny stocks – and can I make money off of them?
Below i have listed the basic info on penny stocks, and how to get Free Penny Stock Picks from quite a few different sources on the internet.
While Free Penny Stock Picks are great, sometimes people prefer the paid services as well – as they tell you EXACTLY when to buy in, and when to sell. It really depends on if you prefer to do your own research, or have others do it for you. Both are great options for making quick money.
Ever since I was a kid, I wanted to learn how to become a millionaire. (Actually, I wanted Donald Trump to adopt me.) In all honesty, a lot has already been written on the topic of Penny Stocks – however I wanted to see if I could explain the opportunity and how you could start off as a TOTAL beginner – aka a newbie.
In this article, I will tell you about Penny Stocks, how to find them, research the, buy them – and make some hefty profits from them in the process! 🙂
What IS a Penny Stock?
First, watch this AMAZING Video by Fox News featuring Penny Stock Millionaire Timothy Sykes to get a better understanding
Keeping things as simple as possible, a penny stock is a common stock that trades for less that $5 per share. Typically, they’re also traded on the ‘over the counter’ (OTC) or outside of the major stock exchanges such as the NYSE or NASDAQ (which you’re probably more familiar with).
According to the U.S. Securities and Exchange Commission: “a penny stock is a low-priced, speculative security of a very small company, regardless of market capitalization or whether it trades on a securitized exchange (like NYSE or NASDAQ) or an “over the counter” listing service, such as the OTCBB or Pink Sheets. The terms penny stock, microcap stock, small caps, and nano caps are sometimes all used interchangeably, however per the SEC definition, penny stock status is determined by share price, not market capitalization or listing service.”
How to Buy Penny Stocks Online
Step 1: Select an online broker.
Zecco offers the LOWEST price per trade at $4.50 US. You can get 10 free stock trades each month when you maintain a balance of $25,000 OR execute 25 trades each month.
If you don’t meet either of those criteria, it’s just $4.50 per trade which is NOT bad at all. Something else noteworthy, they DO NOT require a $500 opening balance like some of the bigger boys like scottrade or e-trade There are obviously other sites you can check out, but I recommend this one for penny stock trading
Step 2: Fund your trading account with the broker.
To Play, you gotta pay
Most online brokers offer a few different ways to fund your account:
- Direct Withdraw from your Checking or Savings account
- Mailing in a check
- Wire transfers.
- Transferring from an account you have with another broker.
Of the above listed methods, wiring funds directly is the quickest, and they can more often than not be made ready to trade within just 24 hours of them receiving the funds via bank wire.
Step 3: Research Research Research
This is the MOST important Step, period.
First of all, there are TWO types of stock sites and forums you can base your research on. Free ones, and paid services.
Free Penny Stock Pick sites and forums: There are MANY great FREE penny stock pick sites, chats, and forums. These are of course 100% free, and many of the picks do end up making people alot of money. These are a GREAT place to start learning how to make your own stock picks, and of course get tips on up and coming picks for the next day.
Some of the free stock pick sites I like are:
http://www.stockhideout.com/ <—My Personal Favorite Site, great forums and chats. This site discusses penny stocks, SUB-penny stocks, and ‘regular’ stocks as well. Many knowledge people are on the site daily, and the forums include MANY free video tutorials. A GREAT place for any beginner who doesn’t mind spending a few hours watching some videos. Watch these videos, and you’ll know what the pro’s do. Also be sure to check out their live CHAT – MANY great picks come out of here each night.
http://www.hototc.com/ <–Another Great one
If you don’t have time to do research, and just want to be told what stock to buy, at what amount, and when to sell – you might want to try a paid stock picking service.
I have used a few of these ones myself after MUCH research of the company and their claims – and I recommend these 100%:
My favorite paid stock picking services are:
Step 4: Select the Penny stocks to Buy, and make your purchase.
This goes along with step 3. You need to do your research one one of the sites I listed above, OR you can even take their picks directly as stated previously. Most of the above listed sites offer DAILY picks via email, and sometimes text alert. This allows you to further research them yourself in order to see if you wish to trade on their recommendation or not.
Step 5: Monitor the stocks daily, or even hourly – Sell, and make a profit! $$
Here’s the part that takes a little bit of work and patience, but pays off in the end (literally). You want to use the internet for up to the MINUTE tracking of your stocks (as needed). The EASIEST way to do this is using your internet homepage to create a portfolio of your personalized stocks. Yahoo stocks is great for this, and you can do the same with a few iPhone or Android aps.
Most brokerages allow you to monitor them and give you fairly accurate up to the minute stock quotes.
It’s VERY important to read up on news that might cause the price of the stocks to rise up, or drop. Important: Penny stocks can sometimes raise up 100%+ in MINUTES or drop down just as quickly – so it’s important to keep on your feet.
As you can probably tell, monitoring your stocks can help you make a quick INFORMED decision on whether you should buy sell or hold.