How to Buy Stock for Pennies
There is no absolute definition for penny stocks in the investment world. Depending on the company, penny stocks could be any stock trading for under $1 or any stock trading for under $5. If you actually want your stocks for pennies, you will be looking for those $1-and-under offerings. You don't have to go to a special company to get your hands on penny stocks. Many of the major online traders allow customers to buy and sell these low-level stocks through them.
- Difficulty:
- Moderately Easy
Instructions
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Get an account with a company that works in penny stocks. Big names in online stock trading, such as Zecco and E-Trade, allow buying and trading of penny stocks.
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Put money into your online trading account. Once the money clears in your account, you can use it to buy the stocks of your choice. Online companies generally accept deposits directly from a user's bank account. You won't need much money to get started with penny stocks.
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Find out what stocks are available at very low prices. There are several sites that list penny stocks that are trading in the marketplace.
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Check out what the experts say about penny stocks. People who follow stocks closely will often make predictions about which stocks are good buys. Penny stock pages have a lot of information regarding the stocks that are being offered and which ones are expected to do well. Global Penny Stocks is an online newsletter recommended by Forbes. These sites can also help you recognize scams, which is sometimes a risk in penny stock buying.
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Purchase shares. Once you have consulted the experts, decide which stocks you want to take a chance on, go to your trading website and locate the stocks by typing in the ticker symbol for the stock. When the stock comes up, follow the method of your chosen trading site to make the buy. It is often as simple as clicking on "Buy" and entering the number of shares you want to purchase.
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