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Buying Penny Stocks Online – The Risk-Free Method
Written by troy on Saturday, June 06, 2009 | No Comments
Categories: Uncategorized Tags: Brokerages, Online Stock Brokers, Online Stocks, Trades, Trading Stocks
Buying Penny Stocks Online – The Risk-Free Method
I love trading penny stocks. I’ve done it many, many times and have profited by doing so. While the penny stocks arena has monumental profit potential, it also has some risk. Deciding where to buy penny stocks online is as much a part of your success as trading the right stocks.
One of the worst mistakes you can make is opening an account with the wrong online penny stocks broker. With so many fly-by-night stock brokers out there and just plain bad brokerages, it’s vital that you do your homework first.
One rule of thumb is to not be swept off your feet by low fees. While they are nice, security is far more important.
To find the right broker, start by scanning potential online stock brokers and quickly weeding out ones that don’t meet some initial criteria. We want to get a list of a handful of places to research more in-depth.
One idea is to nullify any stock brokers who haven’t been around for at least a few years and who aren’t that visible. To start off your list, write down any brokers you know off offhand, like those you might have seen on CNBC or in your favorite investing publication.
After you have a handful on your list, it’s time to start looking at fees and options. Do they charge a higher fee for trades involving sub-$1 stocks? Are there any fees for trading too much or too little? Do they offer fast trades and the options you’d like?
The goal is to get your list down to 3-4 stock brokers for further review. Use your favorite search engine and start looking for news, reviews and chat about these brokers.
At the end of the day, you’ll have 1-2 brokers that meet all your expectations and are highly visible and respected. While it’s possible you won’t have the lowest trade fees, you will have security and peace of mind. If you want more steps you can take to reduce your risk when buying penny stocks online, check out my article. Most people fail and/or fall victim to scams because they didn’t take some simple steps to avoid it in the first place.
By: Jason A. Martin
About the Author:
One of the worst mistakes you can make is opening an account with the wrong online penny stocks broker. With so many fly-by-night stock brokers out there and just plain bad brokerages, it’s vital that you do your homework first.
One rule of thumb is to not be swept off your feet by low fees. While they are nice, security is far more important.
To find the right broker, start by scanning potential online stock brokers and quickly weeding out ones that don’t meet some initial criteria. We want to get a list of a handful of places to research more in-depth.
One idea is to nullify any stock brokers who haven’t been around for at least a few years and who aren’t that visible. To start off your list, write down any brokers you know off offhand, like those you might have seen on CNBC or in your favorite investing publication.
After you have a handful on your list, it’s time to start looking at fees and options. Do they charge a higher fee for trades involving sub-$1 stocks? Are there any fees for trading too much or too little? Do they offer fast trades and the options you’d like?
The goal is to get your list down to 3-4 stock brokers for further review. Use your favorite search engine and start looking for news, reviews and chat about these brokers.
At the end of the day, you’ll have 1-2 brokers that meet all your expectations and are highly visible and respected. While it’s possible you won’t have the lowest trade fees, you will have security and peace of mind. If you want more steps you can take to reduce your risk when buying penny stocks online, check out my article. Most people fail and/or fall victim to scams because they didn’t take some simple steps to avoid it in the first place.
By: Jason A. Martin
About the Author:
For a continued discussion on buying penny stocks online click the link for the PennyStocksCapitalist.com article.
There’s much more in-depth information there as well as a free penny stocks newsletter, penny stock picks and more.
Another article about penny stocks: Online Penny Stock Trading.
Penny Stocks Capitalist is a financial investing Web site geared toward the penny stock trader who wishes to make money in a highly profitable arena.