| Before learning how and where to buy penny stocks, | | | | company is not responsible to pay the amount. Again, |
| it's important to know what penny stocks are. | | | | do your research and make sure you are dealing with |
| If you weren't aware, penny stocks are an | | | | a reputable investment firm. |
| investment alternative for people who have a little bit | | | | Although investing in penny stocks is not a get rich |
| of money available for investing and are willing to | | | | quick sort of plan, the investment funds may supply |
| take a risk. These stocks are normally for sale in | | | | an opportunity to learn trading. You should get at |
| very tiny quantities and even a moderate investor is | | | | least a second opinion about the company and the |
| able to take a risk of investing a couple of cents in | | | | stock before investing in any penny stocks or other |
| these stocks and shares. | | | | types of stock. |
| After you find a broker and before you invest, | | | | Buying cheap penny stocks: Some helpful hints. |
| contact the Securities division of your state and get | | | | (*) Save up or borrow a start-up investment seed |
| information about the broker you choose to work | | | | and determine your penny stock investment goals. |
| with. The past history of the broker provides | | | | Do you want a high-risk, high-reward investment, or |
| essential information about the broker's license and | | | | would you rather go after slower and steadier |
| any disciplinary actions that may have been filed | | | | profits? Try a little of each. Never put all of your |
| against the broker. | | | | eggs in one basket. |
| Once you've decided on an agent, get all the details | | | | (*) Research the penny stock investment markets |
| relating to the stocks, the brokerage house and | | | | that interest you. Learn all you can about |
| other terms and conditions from the broker in writing. | | | | commodities, mutual funds, stock market options and |
| You should also keep all the documents provided to | | | | whatever other investments you want to add to |
| you by your broker and request them to provide | | | | your portfolio. |
| you with any testimonials for buying or trading of | | | | (*) If you're new to penny stock investing, try |
| any penny stocks. After this has been done, get a | | | | "pretending" to do some investing of your own. Give |
| second opinion about any potential stocks and shares | | | | yourself a fictional amount of money (try to be |
| from a second broker and decide carefully before | | | | modest and accurate), decide how you will invest it |
| making any investment. Your broker should also | | | | and watch how you would have made out in the |
| furnish you with a regular account citing the | | | | "real world". Learn from your mistakes. Adjust |
| performance of the stocks you have in your personal | | | | accordingly. |
| account and their performance. | | | | (*) Start by playing small. Try going for modest |
| Before you buy a single penny stock, make sure you | | | | investments and shooting for modest profits. Again, |
| broker's firm has Securities Investor Protection | | | | do not put all your eggs in one basket. |
| Corporation (SIPC) Coverage. Any brokerage firms | | | | (*) Diversify your portfolio, and know when it's time |
| dealing in penny stocks will generally have SIPC | | | | leave an investment. Sometimes it's best to cut your |
| Coverage. If you discover the brokerage is not able | | | | losses, other times it's best to sell before the bubble |
| to return your investment because of bankruptcy, | | | | bursts. Just because you're investing in penny stocks |
| the SIPC guarantees that the client owned stocks | | | | doesn't mean you shouldn't take it seriously. Have a |
| held by the brokerage firms are paid. SIPC insures | | | | plan or strategy and work it. Remember, there's |
| the customer's entire portfolio held by the brokerage. | | | | always a learning curve. |
| In the case of fraud, however, the insurance | | | | |