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Trading penny stocks: Where to start?

Re: Where to start?

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.

You want to trade US stocks with an Aussie broker but you don't have much money and don't want to pay big brokerage.

So save up and open a IB account or go ahead and try with 3K and see what happens...good luck buying XYZ for 0.01 and selling XYZ for 0.02.
 
Re: Where to start?


You already have a poor mind set.
It's not conducive to sound trading

If you go forward with the view of preservation
Rather than cavalier indifference to loss---your
More likely to set yourself up for a financially
Stable future.

It's easy to be average----pretty well everyone is.
 
Re: Where to start?


someone should give you a straight answer why this approach doesn't work.

Scratch below the surface just a little bit more, and find out about what daily volume is being traded at 0.1c vs 0.2c, then find out how much volume is placed on the sell queue at 0.02, then work out roughly how many days it would take for your sell order at 0.2c to get filled.

Then look at the company's financial statement, and see whether the company has enough money to last that number of days you workout above. You might be slightly disappointed at your approach.

Then read a thread here on the stock BCS and see how market noobs thought they bought shares for 0.1c, but ended up with a legally enforcible liability of 1000x their initial outlay.
 
Re: Where to start?


Wow, totally negative. Great answer.
 
I was browsing the forum looking for an answer to the same question. Where best to trade penny stocks, with the least amount of cash and fees at minimum and landed on this. Channy, blame your long winded story, but most people instead of answering you, became too caught up in advising you how you are set up to fail. And not very kindly at that.

Anyway, will continue searching.
 
Just read through this thread and, whilst I understand that the veterans of the market is trying to give sound advice, some are being a bit too forceful about it. There are some lessons you only gain by LOSING money. I've lost money with CFDs so I know first hand, and boy does it teach you lessons fast. You can read textbooks, sources, etc. but at the end of the day, if you're trading your hard-earned, you will learn just that much faster, because that negative experience STICKS with you (hence your "lesson"). You can read about that bad trade through textbooks, etc. 10 times and still not remember it, you can even do that bad trade on demo accounts and it still won't stick to you to the same degree as if you did the real thing. Those who have traded and failed with their actual hard-earned will know what I'm talking about.

So asking him to not trade because he'll lose money is a little counter-productive, especially since he said he's ready to lose that money. There's many ways to learn a lesson, if someone chooses to learn it faster by losing money then it's his choice. It's his hard-earned after all, he has the right to play with it however he wishes. Hey, you can read a thousand textbooks before trading and STILL lose money, maybe just slower but you can still lose money. So just let him be.
 
Hello

I have researched this question a lot and this is this answer I have come up with.
Don't look for penny stocks that are Australian based, no disrespect to our country but we are small so our ASX does not carry a lot of low stocks. I would suggest using an online broker who is international such as ETrade. The American stock market has a lot more penny stocks and a lot more penny stocks scams which you can utilize to make yourself some money, if you study hard and learn how to manipulate these scams like sell just before the pump finishes and the stock goes into a dump.

Also its not harmful to chuck in a few long term dividen stocks in your portfolio that get re-invested for more shares try that as well.
 

What is your definition of a penny stock?

Share price range?

Market cap range?
 
What is your definition of a penny stock?

Share price range?

Market cap range?

A penny stock is both of those a company that doesn't have enough market capital to be listen in the index or a stock trading below $5 (or pennies)
 
A penny stock is both of those a company that doesn't have enough market capital to be listen in the index or a stock trading below $5 (or pennies)

Plenty of money to be made in 'penny dreadfuls' on the ASX, I have found that the key is to establish a strict set of criteria regarding stock selection that can help move the odds of success in your favour.

Penny stocks are one of the best ways to lose money, however the gains can be astronomical if your risk tolerance is made of kevlar.
 
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