An active penny stock is one that moves up, down or sideways on a daily basis with decent volume. Its tough to tell you exactly how much volume because at 2 dollar penny stock will often trade with less volume than a .0001 penny stock. Obviously with the .0001 stock you can buy a lot more shares with the same amount of money than you can with a 2.00 stock. The amount of volume should be enough to get you in the stock without the price jumping away from you and when you sell you don’t want the bid to drop on you due to the amount of shares you are selling. Read more on Active Penny Stocks
When you first begin trading stocks online you must open an account with an online discount broker. In the past we’ve mentioned some brokers and shortly we will have a large list of the good and bad of brokers but for now, find a solid broker with a good reputation if you wish to trade penny stocks, ensure that this broker will allow penny stock trading.
That’s it.
Without a broker you can not trade. Now that you have a broker what are your trading plans. Here are 10 of our ideas (there are many more if you search):
4 Things to Look for When Buying a Stock
Various Day Trading Strategies
20 Huge Investment Mistakes
Buying Penny Stocks
Buying Stocks on Dips
Swing Trading Strategies
Arbitrage Trading
Buying Penny Stocks on The Bottom
Buying Stocks on Margin
Buying Gold Vs. Buying Silver
Hope these articles help you turn a profit in the trading world.
Here is a list of investment mistakes made often!
1. Know why you are investing in a specific company or stock. Also know why you are in the stock market at all. Click here for more investment mistakes
Lets assume everyone knows how to buy a stock. Get a broker, pick a stock, and pay for it. How many traders know what they are buying though? Here are 4 important things to look for in a company when you wish to invest in their company by purchasing a stock. Read more
Merger and Acquisition (M+A) is when you trade the stock of a company based on a future event. This event will be a merger or acquisition. When these events are announced as a “deal” it usually is based on a “target price” for the company. There tends to be a gap between the current price and the target price and this is a spread that can be traded through arbitrage trading. There are many risks involved in arbitrage trading and you must understand them to trade safely. (click here for other day trading strategies). Click Here for More on the Acquisition and Merger Article
Trading versus Investing
People have been investing since the beginning of time. When one is investing, the “investor” supplies cash (capital) to help a business. The business in turn gives the investor an ownership stake in the business. When we’re talking stock and companies, this investment results in the investor receiving shares of the company. When one invests in a company they are expecting the company to grow well and prosperous resulting in the investor making a profit on their investment. Click Here for More Trading Versus Investing
Day Trading Penny Stocks
In previous articles we discussed various day trading strategies and how to make a living day trading. In this article we will focus on various techniques for day trading penny stocks. Penny stocks are very different from other stocks in that there is a greater risk of being the victim of fraud.
Penny stocks are usually stocks under 5.00 but in reality you can find much higher priced ones. Day traders think of penny stocks as very cheap. These stocks are usually very inexpensive. You can find them as low as a fraction of a penny. Click Here for More Day Trading Penny Stocks
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