The "a priori" of every successful trader is risk, not mythological profits. The next is liquidity. Your number one job is to reduce risk, and engage in favorable risk/reward relationships. A penny stock is extremely high risk, but forex is the highest leverage and highest risk market in the world. By what authority do you enter this market?
Where you want high liquidity as a trader, liquidity of penny stocks is almost nil. You would be breaking the two primary rules of a trader to trade penny stocks without advance know.edge of how to handle high risk, low liquidity situations. Trade pennies before you're ready, and you'll be coming back here crying about how you got raped on a market order because there's no liquidity.
But you're not a trader yet, so you've got a ways to go before tackling the unknown world of pennies.
Learn investing first. Read Investing for Dummies and Millionaire Next Door to get a feel for the markets and what's available. If you want to be a trader, read several books by successful traders. If you want to be an investor, read books by successful investors.
Just be aware that if knowledge were the answer, just about anyone could become instantly rich. Over 85% of new traders fail, many lose it all several times. Trading is all about timing. Do you really think you can predict the future? There is no other vocation where you are wrong more, or more of the time. Engineering was easy compared to trading. At least as an engineer, I could be right, always verified, or my bridge would fall down. With trading, you are wrong 50% of the time. It's heart wrenching sometimes to be wrong. Seems almost stupid, and it is stupid for most people. Lots of easier ways to make money. I would advise against even thinking about "trading". Stick to investing. More than likely, you will intertwine the two with good trading strategy and good investing strategy combined to form a trade plan.
The Intelligent Investor: Benjamin Graham
http://www.investopedia.com/articles/07/...
O'Neil, William J.- How to Make Money in Stocks
The Education of a Speculator: by Victor Niederhoffer
Against the Gods: The Remarkable Story of Risk: by Peter L. Bernstein
The Mathematics of Money Management: Risk Analysis Techniques for Traders: by Ralph Vince
Lefevre, Edwin - Reminiscences of a Stock Operator
Rotella, Robert P. - Elements of Successful Trading, The
Schwager, Jack - Stock Market Wizards
Douglas, Mark - Trading in the Zone
Nassar, David – Rules of the Trade
Sperandeo, Victor - Trader Vic-Methods of a Wall Street Master
The Education of a Speculator: by Victor Niederhoffer
You can get all of these books at your local library through the Interlibrary Loan system for free.
Develop a plan, then test your plan on a free simulator at Investopedia.com and when you start making "virtual" money, then you can risk your own
Getting Started In Stocks
http://www.investopedia.com/articles/bas...
Five Minute Investing: How To Evaluate A Trading Strategy
http://www.investopedia.com/university/f...
The Cardinal Sin Of Beginning Investing -- And How To Avoid It
http://www.investopedia.com/stock-analys...
Don't risk a penny until you have a written, tested trade plan.
Penny stocks are a SCAM, and sykes is one of the worst pump and dump promoters. Go to the SEC website (www.sec.gov) and read their warnings.
Forex is a real market. However, forex as marketed to novice investors is also full of SCAMS; forex robots, signal services, binary options, iraqi dinar, etc. All of those are frauds.
Get-rich-quick schemes never work. They are a way to stay poor forever.
You can't open a brokerage account until you are 18, the legal age to sign a contract. Until then, read and learn.
One up on Wall Street - Peter Lynch
A Random Walk Down Wall Street - Burton Malkiel
The Intelligent Investor - Benjamin Graham
It won't matter....whichever you choose, if you choose between Forex or Penny stocks, you will simply lose all your money...
Forex is a "zero sum" proposal...you can only MAKE money if some else LOSES money...
And Penny stocks are just a scam....think it through...if the underlying company REALLY had potential, the Board of Directors would "reverse-split" the shares 1-to-100 or 1-to-1,000 (whatever it would take) to get the price up above $5/share so they could trade on a REAL Exchange where REAL investors could see what a great company it is and invest the money they need to grow & prosper...
So the choice is yours, but it makes NO difference....Forex AND Penny stocks are both just "traps" for gullible people...
The best way to make money online is by learning affiliation marketing. Here you can find a lot of useful information to start making money from today http://moneyonline.toptips.org
It's everything free! I have been doing that method and I am earning good money now.
Good luck!
I'm earning some extra money with sport bettings. I use the predictions made but this software http://sportbetting.toptips.org. It's free to test so you can use it to make your first bucks with sport bettings.
I'm almost 15 and am saving up with a part time job to start trading either forex or penny stocks.
I found out about these through Amy Sangster and Timothy Sykes who are both quite wealthy because of it.
Not going to lie. I want to live a luxurious life style later on in life and figure if I work my A$s of now I can start saving. I have no clue which one to choose. Also, keep in mind I will probably start trading with 2k so I don't have a lot of money to trade.
My question to you is FOREX or PENNY STOCKS?
Pros and cons please.
And any free sites to help me learn how to read the charts, learn about the market, etc would be nice.
