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.
Where to Start with Penny Stocks
First, make sure to read and review this web site 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.
This is a great source to introduce you to penny stocks, prepare you for trading, and enable you to uncover winning investments. The scope and detail provided is unmatched.
Terms and Concepts in Penny Stocks
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 our site.
Get involved in penny stocks by paper trading.
It is an easy, realistic method of learning the ins and outs, and you do not risk a dime. Keep track of imaginary trades in real stocks, which you "would have" made with imaginary money.
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 your favorite types of penny stocks.
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 Peter Leeds? 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 the section on getting a good stock broker.
Seven Steps to Starting Out in Penny Stocks
Read this website in full
Learn the language of penny stocks
Start by Paper Trading
Decide on your goals and objectives
Choose your favorite stocks, markets, and sectors
Develop a research plan or choose an alternative approach to getting your stock picks