Posts Tagged ‘penny stock trader’
Where To Buy Penny Stocks
Written by troy on Friday, April 16, 2010 | No Comments
Categories: Penny Stock Articles, Penny Stock Investing, Penny Stock Trading Tags: buy and sell penny stocks, Buy Penny Stocks, discount online broker, full service brokerage, penny stock recommendations, penny stock trader, Penny Stock Trading, penny stock trading strategy, penny stocks, penny stocks trading, Where To Buy Penny Stocks
I often see the question asked “Where to buy penny stocks?”. There is no special place to buy penny stocks per say. You can do it with a full service broker, a discount online broker or with a company such as Charles Schwab that is sort of a mix between the two. Any of these types of brokerage companies will be able to execute your trades for you. However, what is the best place for you to buy and sell penny stocks?
The most ideal way for you to begin trading penny stocks is to open a online discount brokerage account. It only makes sense. A full service brokerage house is going to charge you more (in many cases a lot more) for your stock trades. They charge you more because you have a dedicated broker who is there to help you work your account. This broker is supposed to help guide you through the pitfalls of investing and to use his/her expertise to make you money. A full service broker is there to make recommendations to you. However, they are not going to recommend buying penny stock. Those recommendations are going to have to come from you. Since this is the case I see no point in paying extra commission for a service that they will not be providing. If you feel that your full service broker offers other value that you don’t want to miss out on then by all means use them but I wouldn’t use them. I used to be a broker with one of the countries largest full service firms. In fact, they were number two at the time behind Merrill Lynch. We would never have been allowed to recommend penny stocks to our clients for fear of customer complaints and the fear of losing an arbitration hearing should the customer complain.
I believe that online penny stock trading is where it is at. Open an online discount brokerage account with a reputable firm. You can use Ameritrade, Scott Trade, Fidelity, etc. It is not necessarily important who you use since most of them will offer similar services. Deposit your money into the account and then begin penny stocks trading. You will make your own decisions.
I know that some of you are uncomfortable right now with making your own decisions. However, this is extremely important. You don’t want to spend time and money for someone else’s penny stock recommendations. You can never be sure why they are recommending the stock. However, when you adopt your own penny stock trading strategy you will know the specific reason why you chose to enter or exit each and every trade. You do not want to be dependent on other people for your trading decisions. You can successfully make your own trading choices.
So now that you know where to buy penny stocks get an account opened up, deposit your money and continue to hunt around this website to find the information that you need to make you a successful penny stock trader.
Penny Stock Advice is Meaningless Without Trading Discipline
Written by troy on Thursday, April 15, 2010 | No Comments
Categories: Penny Stock Advice, Penny Stock Articles, Penny Stock Strategy Tags: fear and greed, paper trading, Penny Stock Advice, penny stock trader, trading strategy, trading system
Many people are searching for penny stock advice. They are looking for someone to tell them which stocks will provide them with fame and fortune. However, the sad reality is that for many people even if you gave them world’s best penny stock advice they would still find a way to lose money or at least not make what they should.
Too many beginning traders believe that successful trading is only about picking the right stocks. This couldn’t be farther from the truth. The number one thing that will contribute to your success a penny stock trader is whether or not you have put in place a disciplined trading strategy.
I have always had a knack for picking the right penny stock. Unfortunately, in the beginning I did not have a trading strategy in place. This more often than not led me to either enter a stock too early (thereby accruing losses) or to exit a trade at the wrong time (either giving back profits or not fully realizing even greater profits).
This may sound like heresy but I am of the belief that any trading system can be successful. All systems will work if the trader exercises discipline. By discipline I am referring to both a system of managing the money in your account and a system of when to enter and exit trades. If you are trading by gut feel then most of the time yu will doom yourself to failure.
A disciplined trading system helps you overcome the two biggest obstacles that stand in the way of you becoming an expert trader. Those two obstacles are fear and greed. Both of these poisonous emotions will cause you to enter and exit your traders at the wrong time. They can turn the best penny stock advice into a losing trade. These emotions will cause you to act irrationally. They can only be conquered through strict adherence to a trading system.
I have heard many people suggest paper trading for awhile before committing any real money. Although I am not entirely against paper trading I remain unconvinced of its benefit. In trading, you don’t experience fear and greed until you lay your money on the line. When you do everything changes. The best traders are able to treat each trade objectively. They do not fall in love with their trades. Their system enables them to overcome fear and greed.
So do you want some great penny stock advice? Here it is. Before you ever commit one cent to a trade spend some time and develop a trading system or at least adopt someone else’s trading system. And once you have that trading system in place, stick to it at all costs. That is the best penny stock advice that I can give you.