|
Penny stock is a type of stock which
people consider selling at low price. However, there is no specific
standard to determine whether a stock is considered a penny stock.
Generally, investors would consider stocks traded at not exceeding $5
per share the penny stocks.
Penny stocks are good for people who do
not have high capital to invest. However, they are also categorized as
highly speculative thus volatile.
How to Trade Penny Stocks
Online?
-
To trade penny stocks online, you have to
open an account. There are online stockbrokers who are reputable in trading
penny stocks. Zecco, Low Trade, Scottrade and ShareBuilder are some of
them. Enquire what services they have to offer you. Find out the
charges imposed. Select the broker who meet your requirements the best
overall.
-
Once you have opened an account, arrange
for money transfer, so you can have credit in your account to trade.
This can be done via electronic transaction. Check with your broker
what is the minimum amount you need to start with. If you are beginner,
start off with moderate amount at initial until you are familiar with
the trading environment.
-
Selling is as easy as buying, just select
the stocks you want to sell, decide the quantity and confirm to sell.
When to sell is depending on your judgment. Use the principle of "be
fearful when others are greedy". Sell your stocks when the market is
up.
|