Penny stock trading is ideal for those who are serious about making a reliable income. You are going to learn about stock picking services and how to choose a service that meets your needs. Before delving into all that, it is important to know its definition in order for you as well as other people interested in this type of trading to understand it a lot better.
What Is Penny Stock Trading?
Penny stocks are also referred to as cent stocks. They are loosely classified companies that sell shares at $5 or below. They have a market capitalization of $200 million. Penny stock trading can thus be defined as investing in low priced stocks that are not traded on major stock exchanges. Because they are way cheaper compared to other stocks that are traded in major stock exchanges, they are therefore quite appealing particularly to people with a small budget.
Are They Worth Investing In?
The answer to this question is both a yes or no. Yes in the sense that they can provide a steady flow of income if they are traded correctly using proper trading techniques and as long one has a reliable broker. They may not be worth investing in if a trader does not have a reliable broker, does not understand how to trade or if they fail to use the right trading techniques.
Beginner's Guide To Trading Penny Stocks
The allure of this kind of stocks is irresistible unlike other stocks. They do not cost a lot of money and at the same time they promise big profits. This notwithstanding, it can lead to loss of money particularly for investors who are not acquainted with the nitty-gritty of this kind of trading. Here is a beginner's guide on how to trade penny stocks that is worthwhile for your quest to success!
1. Choose a reputable broker.
The first step is picking a brokerage that will charge you fair trading fees. The broker should have an extremely fast execution. Remember that as a trader, you will be required to trade a lot and it is therefore prudent to avoid trading at high trading fees lest you end up ruining your profits.
2. Do your research.
Once you have picked a reliable broker, you should research on potential companies to invest in. These companies are also known as picks. Finding good picks can be a challenging task since it requires in-depth analysis for one to avoid investing in pump-and-dump schemes and instead focus on real companies.
3. Invest in penny stock management software.
The good news is that nowadays there are numerous software programs to take your trading to the next level and get consistent profits in return. You will learn some of this software later.
4. Learn about penny stock trading in-depth.
The best way to know something is simply by learning it. Every trader needs to know and understand basic trading principles in order for them to successfully trade. As such, you need to learn virtually everything about it if you want to become a successful trader. You probably do not have to know everything that a professional trader knows, but you should at least need to understand how this kind of trading works. With plenty of materials available online, it is quite easy to learn all important things about it.
5. Start trading.
After you have selected a reliable broker, invested in the most suitable software and learned lots of things about penny stock trading, it is now time to embark on trading yourself – first-hand.
6. Know when to quit trading.
Setting a time frame within which to trade is incredibly important since it can change a trader's course of investments for the better. Therefore, it is prudent to know when to quit. Expecting further profits or getting greedy can lead to losses over time since it can make stocks wipe out a whole deal of investment.
Best Stock Pickings Services
It is important to pick a reputable stock picking service. This is the service that offers stock tips and picks to subscribers. However, this may not be easy as it sounds since there are lots of stock picking services that are available online for you to pick a reliable service from. That is why checking out current top reviews of the best services on the market is worthwhile to you as far as picking the best service is concerned.
Here is a comparison table of some of the reputable stock picking services as well as other products such as swing trading newsletter that will save you plenty of time.
|Jason Bond Picks||5/5||Website, Review||$99||The service has been set into place by Jason Bond (a renowned American stock entrepreneur and trader). The pick is precise, timely and well researched. It has virtually everything you need to trade penny stocks successfully.|
|Penny Stock Prophet||3/5||Website, Review||$47||Whereas the newsletter receives compensation from third parties, it has however been proven to be safe unlike other scammy newsletters.|
|Penny Stock Egghead||1/5||Website, Review||$97||The service is designed to be used by third parties for purposes of advertising and marketing for a limited duration of time.|
Here are some detailed reviews of some of the most versatile stock picking services that are worth your read especially if you are thinking of giving penny stock trading a try and hence looking for a reliable stock picking service…