[mage lang="" source="flickr"]making money on penny stocks[/mage]
Can anyone give me good advise on trading stocks?
what is a fair amount of money to start with and what types of stocks would be the most beneficial in making a profit? And, what are the advantages of buying penny stocks?
A “fair” amount of $ to start with would be 2-3K dollars minimum. This will allow you to have a diversified portfolio with 4 to 5 stocks and roughly $500-600 in each company’s shares. This will still make it tough to turn a solid profit since a 10% gain in one company will yield a $50 profit. If you can muster $10K this will be much better.
As for which stocks to invest in I’d advise you to check out Investor’s Business Daily or the Wall St Journal online to get a feel for the trends. Stay away from penny stocks as most are pump-and-dump schemes.
If you are hard up on cash might I recommend googling DRIP and picking a company and placing your money in suhc a porfolio. Proctor & Gamble is a solid longterm place to park your money.
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