RSSI would like to start trading stocks…?
Tuesday, June 1st, 2010
I subscribed to one of the “penny stock” newsletters and have been watching their results for a while. Seeing that they usually gave pretty good advice, I decided to purchase some today based on one of their recommendations. I have never done this before. I opened an accound with Sharebuilders & Ameritrade – neither one will allow me to purchase this stock. So I tried a different stock. They will not allow me to purchase this one either Sharebuilders says it isn’t a Sharebuilder listed stock and Ameritrade says “Funds are not available for this transaction of a non-marginable security” – I electronically transfered the funds into Ameritrade.
I am very new at this. How can I purchase the stocks that I want on-line?
You can check the web site of that company to learn about their stock ticker and what exchange they are listed in. I have little experience with penny stocks (made money everywhere but not in penny stocks) but you might try the “over the counter bulletin board” Be careful, a non-percentage based fee structure might diminish your profit in dirt cheap penny stocks.
If u r new to stock trading, you might wish to take an online course. There are some very nice ones that teach about discipline, exit strategies, mock trading, personality traits of a stock trader rather than “how to make $100 into $1000 in one week”
I am not a fan of Warren Buffett but he is so right when he says a good valued proper stock is better than a very cheap non-proper one. So, be careful with penny stocks. There ARE reasons why they are penny stocks.
The odds are against you when you begin trading. If I had the money and connections, I would prefer to get into real estate.
Why not try Investopedia? Try the stock simulator on the top right.
Start slowly, I’d recommend the Ameritrade account, (Just because I’ve never heard of the other.)
Start with companies that you know, know what they do, and understand their prospects.
When you start getting more savvy, you can try the “penny stocks.”
I often have positions in things that I think have long term super growth potential, and those are “mad money” holdings. I expect that most of them will go to zero at some point, but they could go to the moon.
(For examplie “gspi.pk” or “mvis” — I think these companies have interesting enough products that they might go up enormously. They may just as easily go to zero. One is a two cent stock, the other is 1.68 or so.)
For your first venture, buy something that may seem expensive, but is more main stream, like McDonalds (MCD) IBM (IBM) Apple (AAPL) or even Microsoft (MSFT)
Good luck!
Be advised that stocks under $3 dollars are not marginable. Also commissions for penny stocks are high if you place a large order, more than 5,000 shares.
A lot of online sites will not allow the purchase of penny stocks and you must use a broker. I do not recommend you starting your investing career looking for “penny” deals as they are generally cheap for a reason. Save your money and buy better companies and your investing career will prosper. I am not saying I do not invest in pennies, but only as a small part of a built portfolio.