How to trade penny stocks?

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How to trade penny stocks?
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To be able to play the game of penny stocks
trading, you need to understand the rules that
govern this type of stock. If youve studied the
ins and outs of penny stocks and have thoroughly
researched companies that youre interested in,
youre ready to trade. Follow these steps to
trade penny stocks Open an investment
account Once youve decided on the companies
youd like to purchase the penny stocks from, you
must register with a trading platform. Some of
the most popular trading platforms are Ameritrade
and eTrade. Both offering platforms for penny
stock trading.
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If you currently have an online trade account for
blue chip stock exchange, you may use this
account to purchase penny stocks. Study the plan
to find out the commission fees charged by the
platform to facilitate your trade.
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If you do not have a trading account, create one
and deposit sufficient funds to pay for your
penny stock purchases. Most trading platforms
will charge a fee to enable trades so carefully
consider the plan and associated costs.
Purchase your penny stocks
Once your account is created and funded, sign
into it and start making purchases. Choose stocks
you have thoroughly researched by looking for
their ticker symbols. Select the quantity you
wish to purchase.
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Monitor your stocks and be prepared to sell
The value of a penny stock changes rapidly. As a
result, these require close monitoring. Keep a
close eye on your investment. Since the value of
penny stock changes within a short duration of
time, choose to sell the stock quickly when it is
performing well. Accept the gain it is giving now
and pull out to avoid future devaluation.
Some penny stocks will plummet right after
purchasing them. This is a part of investing in
low-cap securities and is one of many expected
outcomes.
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Keep Investing
Earning a return from a penny stock takes time,
dedication and patience. Since most stocks do not
convert into gold mines, you may frequently have
to start from the beginning or resell your
current stock to be able to invest in another
company.
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