There are many different types of investments that you can make, and penny stocks are certainly a popular option. It is very important that you take the time to get all the information you can on these stocks before you get started so you can minimize your risk as much as possible.
What are Penny Stocks?
Penny stocks are essentially low-priced stocks with small market caps. Despite the name of these stocks, most of them cost more than just a penny. The SEC recognizes any stock that is priced at less than $5 to be a penny stock. These stocks can be a great place for beginning investors to start, simply because so they are so incredibly cheap. If you don’t want to risk a ton of money with your first investment, this is certainly an option worth considering.
These stocks are traded over exchanges like all others, but they are much cheaper than the mainstream stocks. You will find that most penny stocks are associated with smaller companies that are just starting up or have a relatively small market cap. While this may be discouraging to some people, there is definitely still the potential for significant profit. There are thousands of different penny stocks, so you will have plenty of them to choose from. Lots of people have made a significant amount of money from these stocks, so the potential for profit is certainly there, especially if you know what you are doing.
Penny Stock Gainers
If you are going to trade penny stocks, it is important that you know about some of the more popular ones that are trending. These “gainers” are stocks that will provide you with the best chance of minimizing your risk and maximizing profit. While no stock is ever a sure thing, you will find that stocks that have large recent gains are definitely worth looking into. The more a stock gains, the better your chances will be of profiting from it. There are a number of different websites that you can visit to find out which penny stocks are currently gaining and by how much.
How to do penny stocks
When you are ready to start trading penny stocks, you can purchase them through a broker. A stock broker will take care of the transaction so you don’t have to do anything yourself. It is important to find a broker you can trust, however, as there are many of them to choose from. Keep in mind that true penny stocks are not traded on major exchanges like NYSE or NASDAQ, which is why your best course of action is to hire a broker. When you are ready to sell your stock, you simply inform your broker. A lot of people sell their penny stocks quickly, because you can make 20 or 30 percent in a matter of a few days.
Making Money on Penny Stocks
While it is certainly not guaranteed that you will make a significant amount of money from penny stocks, it is very possible. There are quite a few different things that you can do to ensure that you maximize your profit from these stocks, such as knowing when to sell. It is important that you do not wait too long to sell the penny stocks you buy, because opportunity comes and goes very quickly with these investments. A few days can definitely be enough time to make a profit from one of these stocks, but you will have to know when to sell.
How to buy penny stocks on Etrade
One of the best things about buying penny stocks on Etrade is that it is very simple, so anyone can do it. The first thing you will have to do when buying penny stocks through this website is to deposit money in your account on the site. The minimum deposit for this website is set at $500. When you go on Etrade you will find that they have an in-depth search function that will allow you to find certain penny stocks that you are interested in so you don’t waste hours of your time looking through uninteresting investment prospects.
Penny Stocks on Etrade
You will find that there are quite a few different penny stocks on Etrade, so you will have to take the time to look through some of them before making a final decision. On this website all you have to do is search for the type of stocks you are interested in. When you find a certain stock you might want to buy, you select the stock symbol as well as the number of shares and price, then hit “send.”
Can you Make Money off Penny Stocks?
It is very possible to make money off penny stocks, but you have to know what you are doing. Some of these stocks can be fairly profitable, and you can increase your chances of maximizing profit by doing your research on each one that you are interested. The more time you take to do this research, the better your chances will be of making money from these stocks.
Free penny stock newsletters
If you are going to invest in penny stocks, it is highly recommended that you sign up for a free newsletter. One of these newsletters will keep you updated on stocks that are gaining so you can get the information you need to make a final decision.
Penny Stock Subscription
There are lots of penny stock websites that you can subscribe to, so it is important that you look into some of them. Many of these websites can provide you with lots of valuable information that can benefit you greatly.
Penny Pick Finders
This website is an excellent resource because it will allow you to sign up for email alerts so you can get accurate information about the latest penny stocks.
Penny Stocks Newsletter Free
A free penny stock newsletter will provide you with regular updates on stocks that you can potentially profit from.