Oct 28, 2011

Posted by in Penny Stock | 0 Comments

How To Buy Penny Stocks Online And Make Serious Money

The right way to buy penny stocks online

Buy Penny Stocks OnlineMany people are looking to buy penny stocks online today. This is easy enough. All you need to do is open an account with a broker, connect it to a funding source (usually your bank account) and start trading. There is nothing complicated about that.

Where the challenge lies is how to make money with these stocks. It is no real secret that this industry is volatile. If you do not know how to spot a good investment from a bad one, you will not make money-it is pretty much that simple. Fortunately, if you are willing to take time and learn the field, you can make a killing.

First things first-penny stocks are usually not long term investments. There are certainly exceptions, and in some instances you can make an absolute fortune if you buy penny stocks online and hold them for long periods of time. However, in the vast majority of instances, these are companies that are not going to make you money in the long run. The key is to buy and sell quickly, and to make as many trades as possible.

Don’t quit your day job when you buy penny stocks online

That does not mean you have to quit your job and spend your entire day in front of your computer to buy penny stocks online. Instead, it means you need to take the realistic approach to day trading. You have to come up with a goal, and then a plan for how to get there.

First, determine how much profit you want to make per day. That way, you can then establish how much you need to make from each investment to get there, and how many trades a day that will require. That will give you a realistic target to shoot for.

If this is going to be your field, then you are going to have to get real good at reading stock charts and analyzing price trends. There is just no way around that. It is not particularly fun, but it can be very profitable if you get in and out at the right time.

While every day trader has a slightly different strategy for analyzing stock picks, there is one important variable that you should always look for in a good investment-liquidity.
Quite simply, if you are not able to sell a stock easily after buying it, then do not mess with it. A good investment should have a high number of transactions on a daily basis. This way, you know it will be easy to unload once the time comes. If you want to buy penny stocks online, then investing in liquid stocks is extremely important for long term profits.

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