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Trading penny stocks: Where to start?

Discussion in 'Beginner's Lounge' started by Channy17, Aug 10, 2012.

  1. Channy17

    Channy17

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    Hey, after searching the Internet for answers and not really finding what I was looking for, I have decided to ask people who actually have experience in this field, you guys.

    So obviously I am a complete beginner and had a go at using CMC demo, which I actually found frustrating as it couldnt find any companies I was searching for and it just seemed delayed.
    Basically I just want to put down an amount of money I have no problem in losing and get used to the whole process of buying and selling. I am not interested in long term as I find it exciting doing it on a daily basis.
    i know to people with more experience this may sound irresponsible, but I am only a 24 year old student who has a few grand to utilize to get used to the whole process.
    I am interested in penny stocks due to its extreme risk, but find that the companies I have been looking at are either in Amsterdam or in the US. So I was wondering if there was a online broker which would suit my needs in terms of only trading probably 5 times a month and that I would be able to do this internationally.
    Also in regards to penny stocks, I found using stock market simulator games to have some fun, they couldn't find any of the companies I searched for even though for eg they were based in that country etc.
    Any advice would be appreciated, and please remember, I am aware I am being naive and will probably lose the amount I start with, but this will not cause me any financial hardship whatsoever and I will learn from my mistakes.
    Thanks in advance!
     
  2. Trembling Hand

    Trembling Hand Can be found on the bid

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    Re: Where to start?

    Actually you will probably learn nothing more than the rest of the 90% that always lose. Therefore you are simply wasting money for some excitement. Go buy a ticket to Asia and learn something AND have fun. IMO.

    You are simply planning to fail - not planing to win.
     
  3. Julia

    Julia In Memoriam

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    Re: Where to start?

    There are dozens of posts just like yours across the forum.
    Go to the Beginners' Lounge and start reading.
     
  4. Channy17

    Channy17

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    Re: Where to start?

    Nope, not going to hop around Asia. Uni student so no time.
    If I am planning to fail, it's a good thing it only affects me which I am fine with.
    So is IB the cheapest online broker to use when wanting to trade in the US and Europe from Aus? I installed the demo, and it's a bit fiddley compared to cmc but at least finds the stock I am interested in.
     
  5. wombat40

    wombat40

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    Re: Where to start?

    Yes IB is good, I would say not many are cheaper in comm.. i use them for trading US stocks. You say its a bit fiddly, its actually quite brilliant. Takes a few hours to get use to , but is worth it. Even working out there statements takes a while but there quite detailed.

    You have to realize though they are not CHESS affiliated as are aussie brokers. your a uni student so u should be able to work it out..I didnt past year 10 so its taken me longer to use it.

    So if u do blow ur dough at least u will have it a bit longer (jokin)
     
  6. Trembling Hand

    Trembling Hand Can be found on the bid

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    Re: Where to start?

    Would you enrol in a uni course that left you worse off than when you started?

    :rolleyes:

    Good luck,
     
  7. tech/a

    tech/a No Ordinary Duck

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    Re: Where to start?

    Need $15k min to open an IB account.

    With such a cavalier methodology I doubt you'll see an IB account for quite sometime.
    So sim it is.
     
  8. tech/a

    tech/a No Ordinary Duck

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    Re: Where to start?

    Many do!
     
  9. joea

    joea

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    Re: Where to start?

    Do not trade. silly silly.
    The above two lines displays your mentality.
    You plan to fail.
    In your mind, you fail first then learn to trade.
    That's c**p.

    Start to trade when you plan to win.

    Go to Sally Pearson's blog and learn to win.

    joea
     
  10. burglar

    burglar

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    Re: Where to start?

    Cavalier is a word often used to describe my chess.
    I would throw away pieces in an attempt to beat respected higher-rated players.
    I seemed not to gain any compensation for those pieces.

    I always said if I learnt a better way, I would hold those pieces more tightly.

    Good luck!
     
  11. Channy17

    Channy17

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    Re: Where to start?

    I checked IB, as far as I can see, being 26 years and under only requires $3000 to open an account? From others comments, I thought it was about $10,000 which I am able to put up, however due to my age I don't think I need to.
    In regards to trading, since I will only be starting with a small amount of eg $2000 - $3000, are there any restrictions with IB that prevent you from buying and selling multiple times in a week with a small amount in my account? Basically at first, any profits I make after fees, I will not be reusing to trade. I will only use a set amount to trade to get comfortable with.
    I know the amounts I am starting with are like pocket change to a majority of you, but I am starting with what I am comfortable with. I think it would be more irresponsible of me to start with more. after doing stock market simulators even stocks that are like eg 0.01 being sold at 0.02 which just go up and down every few days, still result in doubling my cash just by checking everyday, buying at 0.01 and selling at 0.02 and then repeat. I mean even if that meant I was making a profit of a grand a week on average, that's still a grand more than I would have if I hadn't been doing this.
    Just in regards to whether I would enrol in a uni course if it meant I was worse off, uni degrees don't cost 2k so it's it's not really comparable.
    Also no one plans to fail. Being realistic is not planning to fail.
     
  12. tech/a

    tech/a No Ordinary Duck

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    Re: Where to start?

    Hell if you have $10k and you've just found "The Holy Grail"
    Just make $ 10 k a week.
    Same thing just bigger stake!

    Oh and could you just point me to the " Realistic " part?
     
  13. Channy17

    Channy17

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    Re: Where to start?

    Realistic part - I am a beginner so only trading with what I am comfortable in losing.
     
  14. tech/a

    tech/a No Ordinary Duck

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    Re: Where to start?

    Ok enjoy losing it.
     
  15. Channy17

    Channy17

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    Re: Where to start?

    Wow, aren't you a bundle of joy to be around...
    Someone's panties are riding a bit high today.
     
  16. tech/a

    tech/a No Ordinary Duck

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    Re: Where to start?

    Like you a realist.
     
  17. boofis

    boofis

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    Re: Where to start?

    Channy, I'm around the same age as you from what you've been saying, and I was in a similar situation to you but that was a few years ago.
    Stop typing and start reading what the older members are saying, you will lose it if you put it in the market, so why not keep it and invest in software, of which I assume you have none, and a few good books.
    If you want some good books then click on the profiles of each individual who has posted in this thread and read some of their posts and you will quickly find some good titles and along the way you may even discover a thing or two in their posts aswell.
    If you want to just lose your money and learn nothing, then carry on, if you are actually serious about your endeavour start making time your friend by learning sooner rather than later.
    My 2c.
     
  18. Channy17

    Channy17

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    Re: Where to start?

    I have books and been reading this forum like crazy. But what I was asking was about a broker site and people's opinions on it. I don't have any problems with getting advice but why on earth is tech/a so concerned about what I am doing... Its slightly strange.
     
  19. prawn_86

    prawn_86 Mod: Call me Dendrobranchiata

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    Re: Where to start?

    True, but the satisfaction of having a degree is something intangible and of different value to each person. But purely financially many degrees are probably not worth their while
     
  20. CanOz

    CanOz Home runs feel good, but base hits pay bills!

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    Re: Where to start?

    He is trying to convince you that what you are doing will result in failure. Same as TH. These two guys have published records of success, worth listening too IMO.

    CanOz
     
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