How to buy penny stocks – it’s easier than you may think!

To buy penny stocks, all you need is some money and a broker. Buying penny stocks is more or less the same as buying mainstream stocks.

Before buying penny stocks it is very important to ensure you are fully acquainted with the risks and make sure you are not being roped into a scam. More details on this can be found on the penny stock page.

Penny Stock Brokers

There are many penny stock brokers out there including choicetrade.

Once you have signed up with a broker, you will probably be required to send proof of your identity in the form of a driving license, passport or utility etc. This is nothing to be alarmed about, it is now a legal requirement under many jurisdictions and is aimed at preventing money laundering, so as long as you aren’t doing that, you’ll be fine :)

Once you have successfully opened your account you will need to fund it. Most penny stock brokers have a variety of different ways you can fund your account including credit card, debit card, bank transfer, paypal etc.

Once your account is funded you can then begin your research and decide which stock(s) you would like to purchase. Remember, failing to prepare is preparing to fail. This applies to many things in life, not just financial trading.

It is often a good idea to monitor the penny stock for a while to try and get an indication of when it is oversold.

Once you feel the stock is undervalued, you may feel it is a good time to buy it. Always have a solid exit strategy in mind so your winners don’t end up as losers. You can read more on this on my trading rules page.