Things You'll Need:
- Computer
- Internet connection
-
Step 1
Step one in buying penny stocks is to get a broker. In days past, the only way to do this was to hire an individual through a firm like Charles Schwab. Now day's most penny stock trading is done online. I recommend options express or E-trade. It's very simple to sign up for their online brokerage account. Simply follow the step by step instructions from their website.
-
Step 2
Step two is to transfer some money from your bank account into your penny stock trading account. Don't go crazy at first. Put yourself on a budget while you're learning.
-
Step 3
Step three is to practice. Both Options Express and E-trade have a system set up so that you can make pretend trades. They give you some fake money to work with and you make fake trades while you are learning the ropes. I would not recommend making real trades until you have done this several times. You can learn about how to buy penny stocks this way without risking any real money. You will also become familiarized with how their interface works so that if you're nervous while making an actual penny stock trade you will be much more likely to make the correct selections during the real thing.
-
Step 4
Step four in buying penny stocks is to make an actual trade. The word "trade" is synonymous with "buy" in the investing world. When somebody says "I made a trade of 100 shares of stock A". That is basically like saying, "I bought 100 shares of stock A".
Comments
Diablo2 said
on 11/15/2009 Very detailed information, thanks 5*
dtmracing said
on 11/9/2009 interesting. I think I will have a go!
kjdavis said
on 11/7/2009 Very interesting. Great article!