How To Buy Penny Stock
If you want to take a chance with your savings, you should learn how to buy penny stock. Although penny stock is cheap as it is worth less than five dollars per share, buying penny stock is no difference than gambling at a casino. The primary reason is that there is no stability in all the penny stocks. The price can go up today, and it can go down completely by tomorrow. Nevertheless, you can still make money by buying penny stock as long as you follow the instructions below.
To buy penny stock, you will need:
- A stock brokerage account
- A discount brokerage
- Trading funds ($500 per stock)
- Over the Counter Bulletin Board (OTCBB)
- Pink Sheets (OTCMarkets)
- Open a stock brokerage account. The first step to buy penny stock is to have a stock brokerage account available. There are numerous discount brokerages that will let you handle penny stock trading by charging a low commission nowadays. If you don't have a stock brokerage account, you should definitely sign up with a discount brokerage through the internet.
- Research penny stock(s). Once your stock brokerage account is setup, find out which penny stock(s) are hot on the stock market for purchases. Get on the internet again and begin your search through OTCBB and OTCMarkets. If you feel that all these penny stock listings are confusing you, it would be wise to search for the company based on its sector. Look up as much information as possible regarding to the company that you are interested in. You need to get all the facts and data before buying this company's penny stock. List all the penny stock(s) that you plan on buying.
- Decide which penny stock(s) to purchase. In order to buy penny stock, review the list of penny stock(s) you want to invest. Note that as a newcomer, it is strongly recommended to trade only three penny stocks at once. The trading fund for each penny stock is $500 as the maximum. Your total investment should be $1,500. Follow the instructions per your discount brokerage on the purchasing process.
You see how easy it is to buy penny stock with these three steps. If you love gambling, you probably will enjoy penny stock trading. Regardless of its down side, buying penny stock can make you a fortune if you do it right!