How to buy Penny stocks?
I was just wondering were do we go to buy and sell PENNY STOCKS? What is the minimum you have to spend when buying pennystocks? Also any other information about penny stocks would be helpful. I am thinking investing alittle bit to maybe make some quick cash.. I know the market is up and down but any legitimate advise would be greatly appreciated. Thank you
Mechanically you buy penny stocks like you do any other stock. Most major firms will accept orders (either by phone or on-line) execute, hold them and sell them when yu are ready.
However, most firms do not like their customers dealing in penny stocks, they are more difficult to trade, cost more for the firm to execute orders, clearing is more of bother, holding them for clients is more expensive and selling them is more difficult. So many firms will do whatever they can to discourage customers from dealing in them.
When you invest/trade in penny stock you should never put up more than you can afford to loose and you should assume you will loose it all. Unlike regular securities, penny stocks usually do not let you use risk cutting procedures (options and/or stop orders) since most are not traded in a regulated market place.
Since the market is unregulated, there may not be buyers there when you want to sell, especially at the price you want.
They say when you buy securities you have a 50%-50% chance of making money, when you buy penny stocks you have a 50-50-90% chance, 50-50 chance of making money and a 90% chance of loosing money.
When buying penny stocks, like any other security investment, you never invest 100% of you investing capital. Penny stocks are fun to trade, but you should never count on them to be considered part of your primary investment objectives.
All that said, here are some websites that you will find helpful