Can I make money investing in penny stocks?
You can make a lot of money playing penny stocks. You can also lose a lot of money in penny stocks. I have done both. You typically have to time everything just right. If you wait too long to sell, everyone else that is playing the game sells and the value tanks. If you buy "on the upswing" it's typically too late. You should check out some of the pennystock investing sites, usually they send out one or two good picks every three months...you really have to watch to see what's the trend.
How much do you need to start trading with penny stocks?
Penny stock usually mean a stock that trades for under $5 a share. As these stocks are cheaply priced, you don’t need much money to get started.For example, $500 will get you 1000 shares of a penny stock that is priced at $0.50.However, you will need some money in order to open up a trading account. I use Interactive Brokers which is good for penny stocks but the account minimum is $10,000.Other brokers have much smaller account minimums. Charles Schwab is $1000, E*trade is only $500.I believe TD Ameritrade and Choice Trade do not have account minimums but I have never used them so cannot confirm.However, these brokers also charge higher commissions. E*trade is $10 per trade which means a round trip cost of $20. That means if you only invest $100, you are spending 20% on commissions. That gives you next to no chance of making a profit.If you invest $500, then commissions will take up 4% which is still quite a lot. Interactive Brokers on the other hand is only $1 per trade so that makes it a lot more feasible.So, it depends on the price of the stock and commissions from your broker.Penny stocks is highly risky anyway. If you start with only a small amount of capital it is even harder because of the commissions.
Basics of trading penny stocks?
i want to start trading penny stocks, but i want to know some basics about it like should i open a banking account separate from my checking, how much should i start off with, and any good tips for beginners?im 21 yrs old working full time but i want to start earning income apart from my job. thanks! anything will help
Penny stock investing...is this a good idea?
Short Answer: No way, you'll lose your shirt. It's a completely horrible idea. The VAST majority of these penny stocks will never go anywhere. They'll move up and down huge percentages, but in the end most will fail. Don't forget your businesses classes, most business fail. If penny stocks were really a gold mine, all the big investors will be in them. Also, the volumes are so low, you'll always have a hard time getting a fair price on either the buy or sale side. Think you can trade the ups and downs quickly enough? Doubt it. There are people whose computers autotrade far faster than you can ever respond. Also, look at the best stock investors and money managers. They won't touch penny stocks with a ten foot pole. If you are still interested in stock picking, you'll learn far more and do better in the long run with trading regular stocks. If you are interested in cheap stocks, now is the perfect time. Stocks like Ford, GM, Citigroup, Sun Microsystems, and many others trade well below $10. But lets look at your example GRYE. Average daily volume is about 25K. If you put in a buy order of 100,000 shares, it'll drive the price sky high to fill the order. Then you'll be holding 100K shares and you'd need someone to come in and buy even more shares to even budge the price. If you really feel like this is the way to go, buy $500 bucks worth. It'll be a much cheaper less then buying 5K worth. If you don't believe me, I'll see if I can buy some shares tomorrow and push the stock up, forcing you to buy at a higher price, then once you buy, I'll sell them. Then you'd have to find someone to come in at an even higher price then you purchased them at.
Penny stock investing...is this a good idea?
Short Answer: No way, you'll lose your shirt. It's a completely horrible idea. The VAST majority of these penny stocks will never go anywhere. They'll move up and down huge percentages, but in the end most will fail. Don't forget your businesses classes, most business fail. If penny stocks were really a gold mine, all the big investors will be in them. Also, the volumes are so low, you'll always have a hard time getting a fair price on either the buy or sale side. Think you can trade the ups and downs quickly enough? Doubt it. There are people whose computers autotrade far faster than you can ever respond. Also, look at the best stock investors and money managers. They won't touch penny stocks with a ten foot pole. If you are still interested in stock picking, you'll learn far more and do better in the long run with trading regular stocks. If you are interested in cheap stocks, now is the perfect time. Stocks like Ford, GM, Citigroup, Sun Microsystems, and many others trade well below $10. But lets look at your example GRYE. Average daily volume is about 25K. If you put in a buy order of 100,000 shares, it'll drive the price sky high to fill the order. Then you'll be holding 100K shares and you'd need someone to come in and buy even more shares to even budge the price. If you really feel like this is the way to go, buy $500 bucks worth. It'll be a much cheaper less then buying 5K worth. If you don't believe me, I'll see if I can buy some shares tomorrow and push the stock up, forcing you to buy at a higher price, then once you buy, I'll sell them. Then you'd have to find someone to come in at an even higher price then you purchased them at.
How do I invest in penny stocks as a teenager?
To add onto Jerry Campbell's answer, the only people who talk about investing in penny stocks are those who sell penny stock “programs” or “lessons”. Penny stocks have such a horrible reputation for a reason. Why do you think that most trading simulators do not allow you to place trades on stocks that are below a certain price? Why do you think that the NYSE restricts penny stocks from trading on their exchange?Also I would like to add that you can open a brokerage account under a guardians supervision. I'm 16 and I have a brokerage account on etrade.