Penny stocks are risky stocks to invest in however they can give you returns which are absolutely unheard of these days. To invest in these stocks you need to know a couple of things about how to buy the penny stocks online and also how to select good penny stocks.
Things You Will Need
A computer with an internet connection
List of discount online stock brokers
There are a large number of discount online stock brokers which have the facility to trade in penny stocks. Talk to the representatives of these stock brokers like E*trade and Scottrade.Ask about the information regarding the fees, commissions and the funding of the account.
Step 2Once you have compared all the online stock brokers then sign up with the best one. Always check online bulltein boards and forums to find out which broker offers the best platform for penny stock trading.
Step 3Once you have signed up with the broker then you will need to fund the account with some money. Put in an initial fund amount which is required by the stock broker.
Step 4Once you have put in the funds then you can log in to the trading area of the stock brokers website and start investing in the penny stocks. These penny stocks are generally listed with the stock symbol suffixed with a 'Y' . Before buying research thoroughly as these penny stocks have very little information available publicly. You will have to make your decision based that on that little information. You can get the information for these stocks at bulletin boards and forums online.
Step 5After buying the stock monitor the stock daily as the prices can vary by a large percentage each day. The answer regarding how to buy penny stocks online is easy however making money using the penny stocks is fraught with risk.
Investing in penny stocks can be done using any online stock broker.Most discount stock brokers have this facility.