Have you ever traded penny stock before? If you had had a bit experience in this trading, at least, you know where to buy penny stocks. Well, is it important to know that this stock does not available in the big exchange market? It has a special area to buy and hold where not all people know about it.
Okay, where to invest penny stock will be the main topic here. It comes along with tips to buy the stock. So, keep staying here if you really want to trade because those all are important.
Where to buy Penny Stocks: Visit These 3 Top Places!
Do not go to NYSE (New York Stock Exchange) and AMEX (American Stock Exchange)! You will not find the companies who trade penny stocks there. Those markets provide big companies with high share cost. If you ask where to buy penny stocks, you can visit these markets below:
1. Grey Sheet or Pink Sheet
Grey or pink sheet exchanges are places that offer the smallest public companies out there. These stocks are very volatile and quite liquid for trading cents. Most companies trade $ 5 per share or less. Unfortunately, the lack of liquidity makes them less ideal.
2. OTC Bulletin Board
The OTC or OTCBB Bulletin Board is an electronic exchange that displays companies that are not on NASDAQ. Stocks here also usually offer a price of $ 5 or less per share. However, liquidity and volatility tend to be better. So, it makes them better competitors for penny trading.
3. NASDAQ Smallcap Market
Literally, the NASDAQ Smallcap market is NASDAQ from stock cents. Usually, this market trades stocks between $ 1 and $ 10 per share.
So, there is only three market exchange for penny stocks. However, knowing where to buy penny stock is not enough. Consequently, you should continue to perceive how to buy penny stock easily.
7 Essential Things to Buy Penny Stocks
You might often read or hear someone warn you to more careful in trading penny stock
. It is as the condition of the stock does not stable where you always get two choices. You get high profit or loss everything in short time.
Besides that, the ventures joining in penny stock is them with small scale, beginner, or on progress. Thus, you need these 7 things after knowing where to buy penny stocks. These important things will lead you to buy stock rightly:
1. Identify the best pattern
At first, start with learning to identify patterns. This is one of the main keys to finding great stocks to trade. You will start from a general pattern in penny trading. An example is reading charts obsessively, seeing the trajectory of the stock from time to time, studying, then practicing.
Trading patterns that are not exactly the same are very important to know everything. After a lot of learning, you find or identify similarities in patterns. The similarity makes it easier for you to trade more confidently. In addition, some science and research that you can reduce the risk in your investment.
2. Become a detective
Learning how to trade penny stocks
can be through financial sleuthing. You can do it while finding where to buy penny stocks. Do it by utilizing the ease of entry for traders using broker
and laptop accounts. You do not have to trade just by learning how the penny shares work.
However, you need to do research about potential games. Moreover, penny shares do not have rules as high as shares in national exchanges.
So, it is very important to research the company before buying. Never accept press releases or tips because you never know who will benefit from such promotions. Who knows, there is someone who is stocking pennies with a pump-and-dump scheme. Always give time and effort to save money as well as heartache.
3. Paper Trade
Paper trading or virtual trading can be a fantastic way to find out everything around penny stocks. Even though, it cannot help you get where to buy penny stocks
. You will simulate the trade realistically without truly putting money into the pot.
There are many platforms for online paper-trading for penny stock traders. Try it first before you start trading using a real account. This method is very informative and a good indicator of your readiness to start trading.
Read also: High Volume Penny Stocks: Definition, Advantages, Tips, and List that You must Understand
4. Starting from small and slow
The next how to buy penny stock is with starting from small and slow. When you are ready to start the first trade, start from the slow one in your trade. Doing small trades from the start helps you build trust over time. It is better to focus on small profits and learn from each trade on the dollar amount. Although this is less attractive, it is a much more stable way to approach trade. The possibility of your career as a trader will be longer and more stable.
5. Failure is a teacher
As you know that victory or loss in trading penny stock is certain. Make your failure as a teacher and an important lesson. Losing and making mistakes in trading is part of the process. That will continue to happen no matter how great you know the pattern.
Therefore, learn from your mistakes rather than regret this or think that you failed as a trader.
That’s why you need to start small after finding where to buy penny stocks. This method can minimize your losses, and give you the freedom to evaluate errors during trading. Taking the time to evaluate mistakes makes you a stronger trader. It implies your trade becomes bigger and your position increases. So, the possibility of making the same mistake is smaller.
Read also: 10 Penny Stocks Lists which are at the Top in Early May
6.Set specific goals
Setting goals are very important because it acts as a motivation to learn and get better. Immediately stick to specific goals and roles to improve your trading psychology.
The more specific the goal the stronger the motivation to do the best. Certainly, the power of purpose helps you move forward as a trader.
7. Find a mentor
are a single type of investment. That is, you can find a mentor to support your career. The mentor will teach you what to do and not do as a trader. Well, learn all of those points and go on where to buy penny stocks.
Do not suicide with buying penny stock without an instruction. Perceive where to buy penny stocks and how to shop it. So, learn both and move!