Penny Stocks For Dummies Cheat Sheet
5 stars based on
Here's an official step by step guide to invest just like I do. I promise it will massively improve your trading results whether penny stocks or big blue chip companies. See how many steps you can get through before you start turning losses into profits. And this is paper trading account penny stocks from a guy who wrote, Penny Stocks for Dummies," owns the world-famous Peter Leeds Stock Picks alert service, and has made a living trading low-priced shares.
This quick Info Graphic will help you decide if you should even proceed. Review the entire thing. It's OK if penny stocks aren't appropriate for you, just forget about them and don't paper trading account penny stocks look back! OK, you're still here. I am assuming you are willing to put a few minutes into doing things right. If I'm correct about your commitment, then you will make money from penny stocks for paper trading account penny stocks rest of your life.
And I bet that that you are male, want a fancy car, and are between the ages of 18 and 33 - just a guess. Watch the Penny Stock Protections - pay honest attention paper trading account penny stocks them, even though you may already know some of the concepts. This step is for people who are serious about paper trading account penny stocks great penny stock traders.
It is also paper trading account penny stocks longest step, but the most important one. We get into the good stuff right after!
Read Penny Stocks for Dummies. Yes, I wrote it. And if you buy it I get a small royalty. Or even buy it anywhere books are soldand ask for the royalty to be returned to you. I will have Tammy or Lisa send you the dollar.
Even if I make zero, read the book. Here's where you get started "trading" penny stocks. But, we're going to get into it with ZERO risk, and absolutely no money. If you followed the step above, you already know exactly how. For the rest of you slackers, it's called "Paper Trading. Here's how to Paper trading account penny stocks Trade. Anyway, paper trade until you can demonstrate that you would be making money. If you are so good and impatient that you can't wait to get started with real money, just pause for a minute.
You'd be able to prove how good you are, risk free, and by the time you actually trade, you'll be even better and just as impatientI promise. Here's paper trading account penny stocks step where I might sound like your grade 7 teacher. But, it's an important step to gauge progress and set a benchmark for where you are at.
It will allow you to know how good your trading approach is becoming. If you've been following the steps up to this point, you paper trading account penny stocks do much better than my own conservative answers. But I'm just trying to lower your expectations, so it's easier to exceed them. We're almost to the point where you actually buy your first penny stock. Paper trading account penny stocks, try to pick 2 where you lose money.
You read that right. Pick 2 penny stocks where your investment is going to go downhill. Picking a winner is the same process as picking a loser. By selecting penny stocks that will decrease in price, you actually put so much of what you've learned in the earlier steps to the test.
You do not want to be the joker who wins big the very first time they enter the casino. They never learn how seriously to take things, or how hard it can truly become. They never even recognize how paper trading account penny stocks lucky they were the first time. You can actually talk to one of these guys about their experience - they are drunk in the Las Vegas alley beside Caesar's Palace.
You want to be more like me when I started - losing it all immediately. I responded by " Paper Trading" like crazyand reading every investment book I could get my hands on. I took the best parts of each approach, and ignored what I felt wouldn't work.
This gave birth to Leeds Analysisand eventually I was kicking a little bit of butt in speculative shares. You have the luxury of skipping that massively educational, yet time-devouring stage, because you have found me, and gotten to this step.
Don't actually buy them! If they don't act as you expected, look for others. Take as long as is required to do this step, whether weeks or months. Do not proceed until you have been successful at this stage. This step may make all the difference in the world. There are many places to generate ideas for potential investments, and you need to decide which ones to trust. Try different sources major media, trade publications, professional analysts.
Discard those that aren't working for you, double down on watching those that are panning out well. Remember, follow but never believe the mass media. Watch them to get a pulse on the market, but don't expect what they tell you is accurate or will ever come true. For example, CNBC is just telling you what has already happened, and what the mob is doing now, but presents it like current news. CNN makes money by scaring you - but if they are telling you that terrorists are going to take down every plane in the sky, you know air travel is safer than ever.
If they are talking about an Ebola pandemic, it means the outbreak is finally getting under control while I've been talking about it for years before CNN ever paper trading account penny stocks it! Typically, the investor sentiment they are telling you will be useful when considered as a contrarian indicator.
More about sentiment near the end of this video optional. If you already have a stock broker, skip ahead a step. If you do not, you will need to open an account with a discount broker, and deposit the funds with them which you wish to trade. It is a very easy process.
The best brokers for penny stock traders can be viewed on our Official Discount Broker Review. That's an infographic, but you can also see our findings in this blog. You need to choose which broker you like best, since it depends what is important to you specifically.
No account minimums, friendly service, low costs per trade? Any broker is going to take a very small fee every time you buy or sell a stock. You should narrow your focus to industry groups which interest you. If you like technology, or if you understand biotech, you will have an advantage over many other traders in the space.
You can even get more granular - for example, focusing on offshore oil production companies, rather than just the overall energy industry. Greater focus will improve your trading results, and allow for faster growth in specialized knowledge. Look at all the stocks in the industry space s which interest you. You should look into a company's most direct competitors, which typically can be done on most major financial web sites.
Choose the penny stocks which pass the tests you learned in Penny Stocks for Dummiesand would likely pass Leeds Analysis. Build a watch list of at least 10, but preferably 20 or more stocks. Watch them all for at least a week, paying attention to each stock's trading volume, company news, paper trading account penny stocks operational momentum. Are they getting new contracts?
Did they lose a big client? Are their competitors launching new products or advertising pricing discounts? Do NOT read about them on message boards. In fact, NEVER go on stock market message boards ever, unless you want to get manipulated with lies, and directed by morons.
Most of this should be accessible via the Investor Relations portion of paper trading account penny stocks web site. Also, take a look at their recent annual and quarterly financial resultsavailable via most free stock market portals. By this point, you should be able to cut your short list paper trading account penny stocks by a few names.
For example, maybe your original 20 stock short list becomes 7, after looking deeper into some of these companies. Get rid of any that give you any feelings of concern, or which you believe will not help you attain your goals.
If you properly followed the steps up until this point, you should be an expert on that small handful of companies. You know what they are hoping to do, what type of press release will lift the shares, how strong their financial position is now and will be in twelve months Before you paper trading account penny stocks ANY trade, go to the company's web site.
Find the section on Investor Relations IR. Locate the IR contact, and phone them. Do not e-mail, you should phone them. If you honestly are going to e-mail instead of phone, then there is no value to this step here for you - paper trading account penny stocks should return back to Step 1.
You may have to call paper trading account penny stocks if you don't hear from them in a day or two, so you call back.