| You should know the basics before delving into the | | | | paper trading. |
| shark's ocean because as you know there are so | | | | It is an easy, realistic method of learning the ins and |
| many frauds and scammers. Getting caught in the | | | | outs, and you do not risk a dime. |
| scammers while starting it will surely end all the | | | | 4. Decide on and document your objectives. |
| possibilities that you will trade in this kind of a | | | | Knowing your goals is another thing and jotting them |
| gambling business. So make sure you have the | | | | down is another. While by knowing your objectives |
| following things in your mind while starting it out. | | | | you have a destination but by writing them on a |
| 1. Understand all about the penny stocks. | | | | paper gives you a way to reach it. So do write and |
| There is no rush to start trading before you fully | | | | see the difference yourself. |
| understand what you want to do, and how to do it | | | | 5. Decide on your favorite types of stocks (if you |
| because there is so much risk involved you just can't | | | | have any). |
| loose your focus and flow with the emotions. You | | | | Know the markets you will trade upon, the price |
| can collect information through the internet as there | | | | range of shares that interest you, the industry |
| are so many blogs, forums and newsletters available | | | | groups you like (ie-biotech, technology, resources, |
| or better to use the experience of others if you | | | | transportation, etc...), and any other parameters that |
| know someone who has done this before. You | | | | you feel are significant. |
| should have a proper understanding of these | | | | 6. Decide how you will go about researching, |
| following things- | | | | monitoring, and trading shares. |
| 1. The Literature involved in this business. | | | | Are you excited about doing your own research, or |
| 2. The Details. | | | | would you rather get professional penny stock picks |
| 3. The histories of the company you are dealing with. | | | | from a service like What information sources will |
| 4. The Principles of Trading | | | | provide you with the details you need to make a |
| 2. Familiarize yourself with general investing terms and | | | | trading decision, and what will those details be? |
| concepts and especially those that are specific to | | | | 7. Decide on a broker if you do not already have one. |
| penny stocks. | | | | Deciding a broker must be done on acquaintance |
| Always remember that penny stocks follow different | | | | basis. You can use the same broker as your friend |
| rules than other types of conventional investments, | | | | doing penny stocks has because it will give you the |
| and therefore have their own language. | | | | much needed trust. |
| 3. Always get involved in penny stocks at first by | | | | |