| Penny stocks are traded in over-the-counter market | | | | you specify the price which you are willing to pay for |
| and you have to use a broker to acquire shares of | | | | a share of penny stock and you trade will be |
| penny stock. The main thing that you need pay | | | | executed only if the share price reaches your price. |
| attention to is having enough money in your account | | | | You should try and trade using limit orders as it will |
| to cover the cost of the share and broker's | | | | increase the control you have over the transaction |
| commission. | | | | and you will also avoid price volatility. |
| But this does not answer the question -- how to | | | | Your broker also has to know the duration of your |
| trade penny stocks? | | | | order. For instance, you order stands good for just |
| The best way to trade penny stocks is checking the | | | | the trading day or it may stand good until it expires |
| pink sheet website. To trade a stock, you have to | | | | on a day specified by you. |
| know the ticker symbol of the stock and the market | | | | Now if you want to sell a penny stock, you have to |
| the stock is trading on. Where penny stocks are | | | | follow the reverse process of buying. You have |
| concerned, you should always buy shares in multiples | | | | know how many share you have and you inform the |
| of 1000 or you might have to pay you broker extra | | | | broker that you want to sell so many shares of a |
| money in terms of commission fees. | | | | stock in your account. You will have to give the |
| You also need to inform your broker whether you | | | | broker the ticker symbol and where the stock is |
| order is a market order or a limit order. A market | | | | traded. In addition, you will have to specify the |
| order refers to the fact that you are willing to pay | | | | amount you want to sell the shares for and until |
| the best available price for a share. In a limit order, | | | | when your order is good. |