Gold Penny Stocks

Penny Stocks for Beginners

Trading  is a fascinating arena , where the matador is the profit who keeps charging and running around the ring trying to catch the bull. The movement of shares and the trading which is happening is in  most cases along expected lines and makes the expected amounts for the expected people. The beginner is the person who is not fully aware of the entire scenario. He wishes to make some money and follows the advice of his friends and that of his broker. In some cases, the trader will go it alone and find himself up and out of sorts.

The stock exchange of each country is dominated by features which are determined by the policies at the moment of time. Making money therefore mean you will be going with the current political scene, one which is decided by the government and the large conglomerates. These are the major stocks. Penny stock  is the share which trades outside the regions of the  major stock . These are not listed in the Nasdaq or S&P and the investor has no real grounding on which to base his faith other than the parameters and values flouted by the company. In this respect it is considered unwise to trade with penny stocks.

The biggest and best stock brokers are :

·         Scottrader

·         ETrader

·         Zecco

·         Optionsxpress

·         OptionsHouse

Stock is a piece of the company which is being sold in public auction. This means that you become eligible to take part in all the decisions of the policies of the company , once you buy a share of the company.  Major companies will have a rating such as the one by S&P.  Penny stocks on the other hand will not have a rating. One will have to go by one’s own judgment in the matter.

Jar Penny Stocks

The beginner will have to get a feel of the markets really are. For this one should have the practice sessions which are offered by some of the traders. If you are trading you should get some tips and pointers from the web and books on trading. Many of the transactions follow a certain pattern for the day depending on the situation.  So expert brokers will be able to predict the movements of the shares and tell you exactly when one share or stock will appreciate or fall. Based on the prediction patterns one may set their sell and buy options for a particular share or stock. The investment is safe so long as you set the stop loss margin. The stop loss is the amount which you are willing to lose on the market. However, when this margin is exceeded you withdraw from the bidding. This is one way to keep your money relatively safe.

The stock brokerage firms will charge you a fee for trading for you. This may be as small as $2.95 for small brokerage firms and $50 for big trading firms. OptionsHouse charges $3.95 per trade and offers 100 commission free trades. They do not have a minimum deposit and have a surcharge of $0.005 per share.

TradeKing offer trading at $4.95. They charge $0.01 per share on an order of shares below  $1. They  do not require a minimum deposit. This is one of the costlier firms. In FirstTrade you get the first 90 days free. The charge on stock valued less than $2, the charge is  ½  cent on the full order. They have no minimum deposit and offer trade at $6.95. They compare favorably with other trading firms like Ameritrade, Schwab and Fidelity.

You are ready to start trading when you have an amount to start your trading with. This should be something which will not leave you high and dry within the first two days of trading. Keeping this in mind , determine what is the amount you are willing to forgo and over what period of time you are willing to do this. Then choose your broker. The choice should be based on accessibility and easiness of operation rather than on costs or  charges. Once this is done you should sit back and start to think about  the portfolio.

The portfolio is the stock, the commodities and the currencies you are willing to trade in. If you have some idea of how much they cost and how they are faring before you jump in, it will help you a  lot. Be sure to study the streaming feedback of the movements carefully since these will help you arrive at a decision. To get started, use the services of your broker . Initially you will get the results which are not too good. But over time, you will find the magic , get your timing right and start to make the correct moves. Till then keep getting the advice of your friends around you.

Posted by Judy Romero