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Step 1
OPEN A STOCK TRADING ACCOUNT - Open a stock trading account at a stock broker or online. There are two kinds of stock trading accounts, a cash account and a margin account.
You can open a cash account with as little as $500 dollars. A cash account allows you to buy stocks with only the amount that you have in your account, wait three days for the deal to close and then you can sell the stock when you want to.
You can open a margin account with as little as $2000. With a margin account you can buy stocks for up to four times the amount you have in your stock account depending on the balance. You can then buy and sell as you please, you do not need to wait.
A margin account is preferable even if you do not use the margin. -
Step 2
TRAINING - Search for free training online. There are many websites including the one where you opened your stock trading account that will help you learn how to trade stocks. Take the time to learn proper trading techniques before you get started trading penny stocks.
Many stock brokerage firms have special rules regarding penny stocks, please research all of the rules for your broker before placing any stock buy or sell orders. -
Step 3
PRACTICE - Use the free practice account that comes with your stock trading account. You can practice for months if you like to, but just remember, it is not real, you do not get to keep any of the money that you make in your practice account.
Knowing how to trade penny stocks will help you to bring in extra income for your family. -
Step 4
RESEARCH - Research all penny stocks that you are interested in purchasing before you place any buy or sell orders. Find an online mentor to help you get started in the right direction. You will be able to find numerous websites that offer free help to new stock traders.
Ask your stock broker if you have any questions.
If you need more information about trading penny stocks please look in the Resources below. Knowing how to trade penny stocks will help you to provide for your family.
