You remind me of the saying "Give a man a fish; feed him for a day (your weekly stock picks). Teach him how to fish; feed him for life." (your willingness to respond to e-mails and your other teaching methods). Just wanted to say "Thanks!"
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Penny Stocks On A Low Budget
August 15th, 2006
I am often asked how to get involved trading penny stocks with little (or even no) funds. Well, you've certainly come to the right investment theater.
How you don't want to start is in the way that I did. My first move on the penny stock markets when I was 14 years old, was to invest all my savings ($3,800) onto one penny stock, and watch it disappear in two weeks.
What I should have done, and what I will suggest to you now, is to get started for no money, and with no risk. I am talking about Paper Trading.
PT simply means keeping track of penny stocks you 'would have' bought and sold, with an imaginary amount of money.
You can read all about how to get started paper trading penny stocks in my free, online book: Understanding Penny Stocks.
The section on paper trading penny stocks is here.
Once you've made a few successful paper trades, you'll be in a much better position to get involved with the penny stock markets for real.
For those looking to invest only a few hundred dollars, penny stocks can be a good option for two reasons:
- you can get more shares
- they are more likely to multiply in value many times
Just be aware of your broker's commission rates. If you invest $50 and take a $10 commission to buy, your penny stock would have to go up in value 20% just to hit break-even. (Before the sell-side commission of course!)
For more about penny stocks, come visit us, the Professionals in Penny Stocks, at www.PeterLeeds.com.