The Basics of how to trade Penny Stocks - Laid out Clearly

The Basics of how to trade Penny Stocks - Laid out Clearly

http://www.MicrocapMillionaires.com

So you want to know the basic--we're talking super simple steps to become able to buy and sell a penny stock online? Ok, we will do that, and I will not assume that you know anything when it comes to trading, stocks, online brokers...or anything that pertains to this subject. So don't get bored if you already know some of this stuff, because some people need to learn and there is few resources available to them that will "take them by the hand" and show them what is revealed in this document.

The only thing I will assume is that you have access to the internet. Let's look at the first thing you will need to do:

1. Open an online trading account. There are many online brokers that are eager for your business, but when you are first starting out you don't need all the fancy bells and whistles that many brokers tout to potential clients.

What you need is simplicity and affordability. I recommend Zecco as a good online broker to start with, as they only charge $4.50 per trade. This low price is unmatched. This low commission fee allows you to start with as little as $250 or so and still maintain a realistic chance of succeeding and turning your initial capital into a much bigger number(since you won't be paying out the yin-yang for each trade).

2. Access to a service that provides research or penny stock picks to you. This is where you have to be extra careful. Most hot penny stocks don't stay that way for more than a few days, so don't think you can just go buy any penny stock that is having a big day. This is often due to what we call the "pump and dump" penny stock. Penny stock promoters will pump up a stock and then slam it down when they dump their shares into trading.

You want to steer clear of penny stock newsletters that engage in this shady behavior. It's totally legal as long as they disclose the compensation they received, but it's definitely not beneficial to those who follow their advice 9 times out of 10.

What you want to do is find a penny stock newsletter that only has an interest in seeing you succeed as a trader. There are a few good ones out there, but the newsletter that you should check out is http://www.microcapmillionaires.com.

You can get 3 free penny stock recommendations, and the email alerts and updates make things easy to understand even for the most unseasoned penny stock trader, including buy and sell alerts. If you want to become a paid member, it's $49 a month, but I recommend that you join the free list for a while before you do that.