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All About Penny StocksUnderstanding Penny Stocks

Did you know that Peter Leeds publishes his penny stock picks? Visit www.PennyStocks.com and learn how you can benefit from the Peter Leeds Penny Stocks service.

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Getting Started in Penny Stocks

While trading is really quite simple, and most people are anxious to dive right in, I think you should hold off for just a few minutes to make sure you are introduced to the following steps and concepts.

First, make sure to read and review Understanding Penny Stocks from front to back.

There is no rush to start trading before you fully understand what you want to do, and how to do it. This book can help you prepare, so that you avoid costly mistakes and make some big gains. A few hours of reading could make a big difference.

There is no other source that can introduce you to penny stocks, prepare you for trading, and enable you to uncover winning investments as well. The scope and detail provided is unmatched.

Familiarize yourself with general investing terms and concepts, and especially those that are specific to penny stocks.

Always remember that penny stocks follow different rules than other types of conventional investments, and therefore have their own language. You will pick up everything you need to know as you proceed through Understanding Penny Stocks.

Always get involved in penny stocks at first by paper trading.

It is an easy, realistic method of learning the ins and outs, and you do not risk a dime. I have included an extensive look at paper trading to help even the newest investor gain confidence and an understanding of the penny stock markets.

Decide on and document your objectives.

Are you just trying to have fun with some risk money, or do you want to make certain returns in a certain time frame? If you do not have goals, you will not accomplish them. If you do not know where you are going, any path will take you there. Set your penny stock trading objectives in advance and write them down. (I am serious about this. You will be amazed at the difference this one step will make!)

Decide on your favorite types of stocks (if you have any).

Know the markets you will trade upon, the price range of shares that interest you, the industry groups you like (ie-biotech, technology, resources, transportation, etc...), and any other parameters that you feel are significant.

Decide how you will go about researching, monitoring, and trading shares.

Are you excited about doing your own research, or would you rather get professional penny stock picks from a service like PennyStocks.com? What information sources will provide you with the details you need to make a trading decision, and what will those details be?

Decide on a broker if you do not already have one.

Open an account with the money you intend to invest. You can do this by reviewing my detailed look at the Top 5 Brokers for Penny Stock Traders.

Seven Steps to Starting Out in Penny Stocks

  1. Read Understanding Penny Stocks
  2. Learn the language of penny stocks
  3. Start by Paper Trading
  4. Decide on your goals and objectives
  5. Choose your favorite stocks, markets, and sectors
  6. Develop a research plan or choose an alternative approach to getting your stock picks
  7. Choose a stock broker
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