Brokers? What do I need to know about them?
Before you consider getting into the penny stock realm, you must choose a good broker. Since trading the penny stocks will usually require more trading with faster transaction time, you may want to consider a broker that is considered to be a discount brokerage. There are a plethora of discount brokers out there right now, and before you jump into the one that offers you the lowest commission price, there are a few criteria that you must check on before signing up with them.
1) Commission price
2) Share limitation (some companies charge you per share over a certain amount (ex: any trade that consists over 10,000 shares will charge $0.001 per share) though, this does not seem like a lot of money, but when you look at the larger picture, you may purchase a stock that is trading at $0.0005 and buy $500 worth of stock, which would equate to 1M shares. Due to this restriction, you may be charged $0.0001 per share over that 10k, so you would have to pay out an additional $99.00. (kind of defeats the purchase of a discount broker)
3) Restrictions – Some brokers restrict certain shares due to its exchanges – choose one that has a limited restriction list
4) What kind of tools do they offer? Stock screener? Real time Level 2? Charts?
5) What is the minimum balance required? What is the minimum amount needed to open the account?
6) Ease of use – is the brokers interface user friendly? Easy to maneuver around?
If you choose to do less research yourself and rely on a professional, you may consider a full service brokerage house. The difference between a full service brokerage house and a discount broker is that you will be dealing with an actual person every single time you trade; therefore, you will be paying a lot higher commission prices.
Can I make money trading Penny Stocks?
In order to make money, there has to be knowledge on how to buy, sell and exchange penny stocks. A considerable amount of money can be made from pink sheets / OTC Bulletin Board. Some companies have an astonishing potential and a have a bright future ahead of them. Their return on investment from other penny shares can also be pretty both impressing and surprising. If you are skilled to make the right make pick, you will be amazed and you will forget about the ones that collapsed or other previous losses.
MyBestStockAlerts is a company that stands out amongst our peers, as we follow stricter guidelines that we have created for ourselves. Observing the way the industry has turned, we have vowed not to become one of those ‘corrupt’ companies by providing the old ‘pump and dump’ onto our subscribers. We believe that being honest and Trustworthy is key, and providing our subscribers with the utmost factual information that we have.
We do not fabricate any information, just provide the fundamental and technical facts to you, which will enable you to reap great rewards. With Penny Stocks and any other types of investments, there is a lot of risk. Please do your own Due Diligence as well. Combined with our expertise and your own research, you will make some sound decisions which will lead to greater profits. Remember to protect your assets at all times and do not get greedy.
A profit is a profit, and you can take that to the bank!