Online penny stocks trading can seem daunting when you are a beginner, but there are a few tips to becoming a successful trader. When someone wants to get into the stock market, they may be taken aback by the amount of money needed to be able to make the smallest amount in profits. Buying penny stocks can make you a great deal of money and you don’t even have to have a lot of money to trade with. It is a lucrative activity when done wisely and it is advantageous, since you don’t have to risk so much money.
Penny stock trading online is with shares which small companies offer in an effort to raise capital for their growing business. Buying penny stocks online normally does not require a lot of money and one can start their investments with as low as $100, since a share can cost from as little as $1 up to $5 and at times they can cost even a few cents. Penny stock trading is not like the normal stock trading. They are not listed on a public stock exchange, but are released in small amounts at a small price. These stocks are referred to as microcaps. This trade is done through private transactions through microcap brokers, directly from the company, and discount online stock brokers.
Many people get interesting in trading penny stocks online due to the small capital required. However, when investing in penny stocks, one should invest only the amount which they can afford to lose. Try to avoid gambling, as mentioned in my other post titled: Buying Penny Stocks is Like Gambling. Do your homework, it is critical to your success. Research and research some more. Research as much as you can about penny stocks and about the company you want to buy stock in.
Since standard regulatory agencies do not normally list microcap stocks, one is not able to monitor the performance like in the standard stock market. You need to be very careful while making this kind of investment. Investing in a company that you are already familiar with is beneficial, as you will also be familiar with their product and therefore have an idea of how the business is performing. There is a big risk of fraud when you start trading penny stocks online, therefore you should never entrust your money to a company which you have not vetted. If you are a beginner you may want to leave the vetting to an experienced broker, enquire from a regulatory agency, and seek out good penny stock newsletters.
Do you want to find a good list of penny stocks? It can be very hard to find a good penny stock. You have to do your homework. Watch out for the scams. That is why many people do not like buying penny stocks, because there are a lot of pump and dumps. Research as much as you can about the particular stock. Check out the forums, look at charts, find out about any new products that could be in competition with the company. Research, research, research. Join newsletters that will send you list of good penny stocks. However, be careful about buying newsletters. Just make sure the company of person you buy from has a good reputation. When you buy list of stocks, just watch the stocks they pick for a while, before you decide to trust them.
Remember, that you can make money buying penny stocks online though. Don’t let people tell you otherwise. Companies such as Ford, Xerox and GM all started out as penny stocks. You never know when you might hit it big with a company. However, in today’s rocky economy, I wouldn’t hold a penny stock for very long like that. I would go for day trading style. Make your money today or tomorrow, not years down the road. That is the beauty of penny stocks. Now go get your own hot penny stocks list. Here’s a little list of some of the popular penny stocks that I like. But don’t trust me, do your homework.
List of Penny Stocks:
Sirius has moved well in the last couple of years after going through a rough period. Shares were below $0.10 and climbed to $1.61-$2.00. They are a good penny stock to buy right now, because of the Sirius and XM merge, they have no competition. However, you will not want to hold on to them for very long, since it is only a matter of time before Wi-Fi takes off the need for satellite radio.
-USA Technologies Inc.
Prediction is that this company is set to grow over the next few years and stock prices will follow too. USA Technologies produces vending machines, coolers, and appliances. Right now they are virtually debt free and they have annual run rate of $20 million recurring revenue. Current trading price is $1.89-$3.00
-Arena Pharmaceuticals, Inc
Arena is a biopharmaceutical company that focuses developing oral drugs for the cardiovascular, central nervous system, inflammatory and metabolic diseases. Still a bit of a dubious stock after their new drug called Loriciferan made for weight management was refused by the FDA last year. However, if they manage to straighten out a few kinks their share prices could surge. The FDA does set a high bar for weight loss drugs though. Present trading price is $1.46-$5.00.
-Voyager Oil & Gas, Inc
An oil and gas discovery company that carries out operations in Montana and Alberta Canada. Share prices are expected to rise from current price of $2.80 a share to $7.00-$8.00 a share.
-Village Bank & Trust Financial Corp.
The company’s wholly owned subsidiary is Village Bank. The bank that offers a range of services including checking, savings, certificates of deposit, and commercial, real estate, and consumer loans. Village Bank is not a member of the Federal Reserve System. They have 15 branches in Virginia and it appears they are on the up and up. The current price is $2.60.
These are just a few of the top penny stocks right now. As always do your own research and find the right penny stocks for you. Read forums, blogs, and read press releases about the companies. Watch out for any hype though. Find your own list of penny stocks that are right for you every day, and then make money every day buying penny stocks!