How to Find Penny Stocks

Buy Penny Stocks

Penny stocks allow people who are not willing to risk much and those without a lot of spare money to invest in the stock market. It can be fun scrolling through the day's biggest winners and biggest losers. Who knows, you may choose the right penny stock and get rich. The risk of losing your investment is great. Therefore, use a similar strategy when investing in penny stocks that you use when purchasing Lotto tickets. Spread out your purchases and buy a few of each kind of penny stock that you find interesting.

Things You'll Need

• Free Stock tracking online such as Yahoo finance
• Online broker or individual enrollment forms
• Spreadsheet to track purchases, sales, earnings, and losses

Instructions

1. 

   Scroll through the day's "most active" and the day's "biggest gainers" on the NASDAQ and DOW. Links are provided in the Resource Section of this article. Find the stocks that are currently trading at around the one dollar range $1.00.

2. 

   Research the companies with penny stock offerings that you find interesting. You can do this by clicking on the stock symbol and viewing charts or going directly to the company website.

3. 

   Start an account with an online brokerage firm; these are usually less expensive for trades than a local broker. You can also choose only to purchase stocks from companies with direct purchase options. This option can help you avoid brokerage fees. Go to the website and print a stock purchase form or request one to be mailed. Read the requirements such as minimum purchases, fill it out, attach a check, and mail it.

4. 

   Purchase penny stocks from several companies. You never know if these companies will succeed or fail, so do not put all your eggs into one basket, diversify.

Tips & Warnings

• Have fun with investing in penny stocks, sort of like playing "Life" or "Monopoly."

• Never invest more than you can afford to lose think of this as a state lottery where 1 in a million win.

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