First Step in Trading Penny Stocks

Welcome traders! Cashola is a no frills, easy to understand penny stock trading blog. For beginners, the learning curve is huge and intimidating. No one will hold your hand in the penny stock world; on the contrary, many will deceive you for their own gain. This blog will teach you the essentials that will help you build a strong trading foundation. Discipline along with knowledge will make or break you as a successful long term penny stock trader. Luck helps, but can only take you so far. Discipline and knowledge, I can teach. Luck, not so much.

First step to trading penny stocks successfully is having the ability to trade with the least amount of hinderance. What does this mean? You need a good broker. My recommendations: E*TRADE or TD Ameritrade. Each of these brokers will allow you to trade most if not all penny stocks with no issues. Transaction fees and incentives are something to consider so check each broker for these details as they are constantly changing.

I myself use E*TRADE to execute trades, but use TD Ameritrade’s thinkorswim platform for viewing charts and technical analysis. TD Ameritrade does not require you to deposit funds to register or use their apps. In my opinion, you cannot beat thinkorswim for their charting and free L2. For those looking to practice before using real money, TD Ameritrade offers paper trade accounts that allow you to trade with virtual money. I strongly recommend beginners to paper trade initially to learn to execute trades comfortably before using real money. Once you are comfortable with executing trades, don’t waste much more time. Bite the bullet, and get started with your first trade.

Leave a Reply

Your email address will not be published. Required fields are marked *