Investors like to invest in penny stocks because of the possibilities that can occur in such a short time frame. At such low numbers there is the possibility for the stock to make massive gains. On the other end of the spectrum is the ability to lose massively as well. That is why it is so imperative for penny stock traders to have an intelligent plan and also own and utilize the correct apps for investing.
Necessary Real Time Updates
There is a lot of inherent risk when investing in penny stocks. You’ll need to be wary of the amount of scammers out there and look into reliable news sources that aren’t out there to mislead you to a certain trade. The good news is you can find shares priced under $5. Which to many is considered usual penny stock level. Here are some steps to take and news apps to use for android users.
1. Bloomberg Business: Bloomberg is one of the top news sources and is a known source for good quality articles, videos, and market analysis. With this app you’ll be able to hear the first of breaking news and let it influence your investing strategy. It is respected and will look out for your best interest while looking for deals in the penny stock market list of securities.
2. StockTwits: Social media for investors has taken off and it’s not surprising why. In terms of penny stocks, having a real time Twitter like platform can assist investors in making informed decisions based on others opinions. If you know that something doesn’t look right or want to play contrarian, you’ll be able to do so by either following the trends or going against them.
Staying informed by the right sources is the most important in the investing world of penny stocks. That’s why you must go to websites that will recommend real companies. Some of these include Money Morning, who have in depth guides on penny stock investing and pick real companies with real revenues that can be capitalized on.
Research is Fundamental
Many first time investors start out with working with investing in Penny Stocks. If that is going to be the case then they need brokerages and applications that can assist them without taking out unjustified fees and full transparency. Here are some apps to help get started and make money in the process.
3. Robinhood: An app like Robinhood is special because it trades for $0 commission fees, which means you as the trader pay nothing. They manage to make their money on other fees and methods not tied to you as the individual investor. Dealing with Penny Stocks can be a great place for you get a hold on things in an app environment like Robinhood. It is simple click and buy or click to sell. This can be a first kind of brokerage account to get you situated with the market.
4. Stock Trainer – Virtual Trainer: One of the safest ways to learn how to invest in the market is to do so without any real money. Trading in a simulated market should only be done minimally as one you want to actually make some money. But once you’ve got the fundamentals down, lost a bit, gained a bit, then it’s time to get into the real market and make some money.
Sources of Research
If you’re searching for any kind of company first find the company’s index on the website from New York Stock Exchange or Nasdaq. It should be a red flag if you’re not able to find the company listed on any of these respected and foundational institutions.
If in the event you’re investing in an international company. Look into the socio-political atmosphere around that area and what their specific business laws are in terms of foreign investment or investment in general. Any reputable company will not be bothered by providing with information if you simply ask them for it as well.
Key Points for Penny Stock Trading
There are additional points to keep in mind that can help you develop an investing and trading strategy to apply towards penny stock investing. Know that this is a volatile market that heavily depends on timing. Any real time trading application or brokerage account should be utilized to its fullest. Look out for push notifications and the ability to make pre-determined purchases and sales at certain price points. Always make sure the penny stock is from a reputable company.
Sarah Conway became interested in penny stocks when she was stuck at home with a newborn baby. Craving something, though she wasn’t sure what, Sarah gave penny stocks a try, and that, as they say, was that! She now writes about micro trading for personal finance blogs, investment blogs and any other sites that will have her!