Penny Stocks - How to invest? :(

[zizy]

Hello everyone!
I would like to invest in penny stocks. My budget is really low, like $300, that's one of resons why I would like to invest in penny stocks. I have few problems, first is that I can't find firm where I can open brokerage account for that low amount of money, second is that firm must alow EU people to register, bescause I'm not from US. I hope you can help me!

Thanks

 

[tar]

Hello everyone!
I would like to invest in penny stocks. My budget is really low, like $300, that's one of resons why I would like to invest in penny stocks. I have few problems, first is that I can't find firm where I can open brokerage account for that low amount of money, second is that firm must alow EU people to register, bescause I'm not from US. I hope you can help me!

Thanks

Investing in penny stocks isnt easy most of these stocks are worthless , anyway choicetrade dot com is a US broker , no minimum required to open a cash account , however they have inactivity fees .

 

[lucas_king]

Hello everyone!
I would like to invest in penny stocks. My budget is really low, like $300, that's one of resons why I would like to invest in penny stocks. I have few problems, first is that I can't find firm where I can open brokerage account for that low amount of money, second is that firm must alow EU people to register, bescause I'm not from US. I hope you can help me!

Thanks

Just because you have $300 to invest, it doesn’t mean you only have to look at penny shares.

Yes you will be able to get more shares but that isn’t what’s going to make you money. What will make you money is how much your position goes up percentage wise.

I have an account with Accendo Markets and I trade CFDs/spread betting. I opened it while I was in Greece so I just had to send ID.

 

[kzak]

I've been monitoring penny stocks for almost a year and I have given up on them for the past year. They all seem to follow the same trend where a certain penny stock company gets hyped by an advertiser (via email) and the price shoots up, and in a flash, the price tanks.

If your serious about investing, I don't think penny stocks would be a wise option to start your investing in. Just like Lucas_king said, "you will be able to get more shares but that isn’t what’s going to make you money. What will make you money is how much your position goes up percentage wise".

I have an account with Questrade which is a brokerage in Canada, however, they do require $1,000 minimum to open an account.

 

[I'vereadthemall]

Pump and dump penny stocks are a different beast to quality penny stocks. Filter for stocks priced under $5.00, with both sales and earnings growth higher then industry average.
Slap a 20 P/E multiple on most recent qtr eps run rate and if your stock is 50% cheaper than the resulting price, buy it if it breaks new 13 week high.
Use a 4 x Weekly ATR trailing stop-loss.
If you want fast action, make sure the stock also has a low float. Somewhere under 15 million shares should do it.

This strategy is guaranteed to avoid pump and dumps because of the sales and earnings growth filter. It is guaranteed to offer volatility thanks to the low float. It is guaranteed to catch all trends and keep you in the trade.

Contrary to what others have said, penny stocks are a wise investment if you have the right strategy. Apple will not go up 300% this year. Many stocks that met all of the above rules already have.

 

[Markrichard]

I couldn't understand that why you want to invest in penny stocks. If you really want to invest in penny stocks, then ask referral for this and try to find out exact person who can help you.

 

[Npard23]

Don't

 

[alanpris]

Hmm. I don’t know if investing in penny stocks a good idea. But as mentioned above choicetrade could be your go to place here. But do a review research of them before you get started

 

[TimWarren12]

I wana ask if penny stocks will be suitable for teenagers?? I mean my son saves some money from his online freelance writing and is smart enough to think of earning from this too. Proud of you son

Yeah I would like more recommendations for my teenage son....plx

 

[timsk]

I wana ask if penny stocks will be suitable for teenagers?? . . .

Hi Tim,
In a word: no! There are all sorts of additional issues to contend with when trading penny stocks - over and above the 'normal' issues associated with large cap' or blue chip stocks. For example, a $0.01 cent spread on a $0.20 cent stock is 5%. Therefore, the stock has to move 5% in your favour just to break even. Whereas, a $0.01 cent spread on a $2.00 stock is 0.5%. Therefore, the stock only has to move 0.5% just to break even. Penny stocks are often 'illiquid'. This means you don't get the price you want because there isn't anyone wanting to take the other side of your trade. Needless to say, this tends to result in the trader paying more than they want when buying and receiving less than they want when selling. Allied to this is price manipulation. Penny stocks are often involved in 'pump 'n dump' scams whereby someone buys a large tranche of shares and then talks the stock up on forums like this one and Facebook etc. As the stock rises, the original investor gets out for substantial gains, selling to late comers to the party. They then watch in dismay as price waterfalls all the way back down from whence it came, unable to bail out for the reasons I've explained.

So, my advice would be to steer clear of penny stocks. Contrary to popular belief, they aren't really suitable for novice traders. If your son wants an introduction to trading equities - point him in the direction of these two Stickies: Essentials Of Stocks and Essentials Of 'Indices'

Btw, your profile indicates you're a vendor of some sort (the market stall icon - third in from the left). I assume this is an error - otherwise you probably wouldn't be asking this question?
Tim.