Penny stocks, also known as cent stocks in some countries, are common shares of small public companies that trade at low prices per share. They are notoriously risky but if you follow a special method I've learned you can earn good money at almost no risk. This is the site I use: http://pennystocks.toptips.org
I definitely recommend subscribing to this site in particular. Very good research, quality stocks. I was a bit weary of penny stocks from all the bad hype they receive but this guy is pretty legit. He's put my mind at ease with a lot of the fears I've had. I especially like that he doesn't send out announcements left and right. I've signed up for other websites that fill my in-box with one company after the other. I don't know where to even start with so many choices in front of me! Nathan sends me one idea a week and that's all I need. Working so many hours during the week leaves me with very little time when I get home to start doing tons of penny stock research. I'm always eager to see what Nathan's next suggestion is each Friday and I love having time on the weekend to do my research.
As said above if you want to make money with penny stocks you have to follow some proven methods. This one in my opinion is the best: http://pennystocks.toptips.org
Do not invest in penny stocks. Its gambling. There is a good reason they sell for a Penny.
IF you truly want to invest in stocks, begin by reading the book, "The Intelligent Investor). Warren Buffet says this is one of the best investment books ever written.
Once you educated yourself, start a Scottrade Account and invest on line. The best way for a novice investor is to buy and ETF based on the stock market index, Such as SPY or DIA which is based on the S&P 500 and the Dow Jones index. Invest a fixed amount monthly in these index fund and you will begin to grow wealth.
Speculate in penny stocks and day trading and you'll be broke within the year.
Your earliest investing mistakes are the costliest.
45 years ago (I was 18), I had $3000. to invest (gasoline was 28 cents a gallon, my new 1967 Mustang cost $2500) I bought speculative stocks, and in less than 2 years the money was gone. WHAT IF I had bought Coca-Cola, my favorite drink at the time, reinvested the dividends and held on? I missed out on tens of thousands of dollars. (I would say hundreds of thousands, but the less I remember, the less it hurts!)
Invest for the long term. don't buy based on whim, feel or tips from your barber.
Make good decisions and good things happen.
To start trading stocks, you will need to open an account with a brokerage house such as Scottrade or TD Ameritrade. They are required to have you fill out some forms. You must put money into your account before you can begin to order trades.
You select the stock you wish to own and place your order with the brokerage either by phone or online electronically. The brokerage makes the trade for you, usually within seconds.
The shares that you buy are kept on file at the brokerage. Many companies no longer issue certificates for shares but keep track electronically.
When and if your company issues a dividend, it goes directly to your account.
You can get more information at their websites.
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Answerer "greg" is correct about penny stocks. They are cheap for a reason, usually because they are near bankruptcy.
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Do yourself a favor and learn to invest (quality stocks) and not gamble (penny stocks.)
Keep in mind that if you do lose money with your penny stocks that does not mean that all stock investing is bad it only means that penny stock investing is bad.
I'm 20 and in college, I want to buy some penny stocks online without too many fees. How can I do this? I've never bought stock before. Thanks.
