Penny Stocks Invest Blog

Getting started trading penny stocks isn’t difficult. First you’re going to need a brokerage account. There are many online brokers out there. I like eTrade. http://www.etrade.com They’re not the rock bottom cheapest but the service is acceptable and live help is available by phone 24/7. They also offer free quotes in real time along with other trading tools.

Trading the pennies implies you’re only holding the stock for a short time, perhaps a few days or less. If that’s the case you’re going to be looking for stocks that are on the move or about to move. The best way to find such candidates is by becoming a member of one or more online penny stock trading communities. You’ll find them with free as well as paid membership sites. The following sites are a combination of both free and paid. Most offer hot penny stock picks online and via email:

http://www.stocknetpros.com
http://www.daytradepennystocks.com
http://www.pennystocks.com
http://www.thehotpennystocks.com
http://www.stockhideout.com
http://ragingbull.com
http://www.pennyinvestor.com
http://www.thepennystockblog.com/bulletinboard
http://www.pennystockforums.net
http://investorshub.advfn.com
http://www.hotstockmarket.com/forums
http://www.pennymarkets.com

When trading penny stocks for the short term you aren’t going to be concerned as much with company fundamentals as you will with news. Plain and simple, virtually all stocks move on good news. Of course, you’ll want to make sure there are no blatantly obvious negatives about the company so some research will be required. My suggestion for gathering good candidates is to find one or more penny stock forums where there are members with great track records for picking winners. As these individuals issue their picks, sit back and watch how the stock performs.
You might want to paper trade before getting involved in any real trading. Take one or more picks from someone with a successful record and watch for a good entry point. Record the price and number of shares you’d realistically buy if you were actually making the trade. When you’ve reached a profitable price (or when you’ve reached your threshold of pain in the event the stock goes down), sell. Record the trade, along with your paper profit or loss and do it again. Continue until you feel comfortable with real money.

Before actually trading real penny stocks you’re going to want to become familiar with the basics of charting. You’ll be looking for stocks that are bouncing off of recent lows and making their way back up. The following links point to some excellent free charting tutorials as well as free stock charts. Good luck!

http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis
http://www.learninvesting.com/modules.php?name=Sections&op=viewarticle&artid=9
http://www.youtube.com/watch?v=XhA6Dc-ym_s
http://www.stocktradingtogo.com/2007/04/30/stock-charts-understanding-the-basics
http://stockcharts.com/charts
http://bigcharts.marketwatch.com