How to Trade Penny Stocks Online with Best Gain?

How to Trade Penny Stocks Online

If you are curious how to trade penny stocks online, the first rule is to learn as much as you can about the small cap market. The best start is to turn to a book written by Peter Leeds Penny Stocks for Dummies. In his book the well-known authority and penny stock investing guru covers pretty much all of the basics on how to trade penny stocks online with best gain. Those interested can even take a step further and for a small fee of $19.99 a month sign up for his amazing newsletter that will uncover even more secrets on how to trade penny stocks online. In his newsletter, you will gain information on the best penny stock picks that went through rigorous 29 Point Leeds Analysis System, will access company’s reports and will be able to join a penny stock forum.

The truth is that a big chunk of beginner investors are naturally gravitated towards low priced stocks. That is when stocks priced at mere pennies come into play. Low prices and seemingly low penny stock risks are what lure beginners in the shaky world of small cap market. But is everything so bright and cheery in the penny stock world?

In fact, small cap companies are some of the riskiest forms of investment since some of them are not traded on major stock exchanges like NYSE or NASDAQ but rather over the counter of so called Pink Sheets. Because major stock exchanges are not imposing any strict rules or regulations on these companies, by law they are not really obliged to file financial statements with the SEC. So most of them stay off the radars in the gray market zone where very little information is available to the public as to the financial state of these companies. The general rule of thumb is to avoid penny stocks pink sheets picks like the plague.

However despite of all the difficulties and risks, there are sharks who say they can make money virtually on any type of penny stocks, whether they are trading on major exchanges or over the counter, and no matter how volatile the market is. Timothy Sykes is another well-known authority who turned his $12,000 Bar Mitzvah gift to a multi-million dollar penny stock portfolio. Today he is teaching students across 6 continents how to trade penny stocks online with maximum gain. To learn more about his secrets of how to trade penny stocks online, sign up for his newsletters at You can additionally purchase membership at, a community-trading platform for continuous education, stock analysis and trade alerts.

There are many opinions on how to trade penny stocks online and receive the maximum growth but there are still certain aspects the most experts agree on unanimously.

Respect the Risks

Understanding all of the risks involved and managing them will help you avoid major losses. The first step is to always stick to a budget and never go over it even if the market keeps you hyped up. If a company is experiencing major losses, it is better to take a small loss and stop the financial bleeding. Many newbies just cannot let go off the losing stocks in the hopes that they will come up one day. This day may never come, it is wiser to sell off a stock and buy another more promising investment from penny stock brokerage firms or online. Also, if you are not sure how to implement a more advanced way of trading like shorting penny stocks, for example, do not do it. Gain experience by doing simple every day trades and then move on to more complex operations.

Devise a Strategy

It is essential to have a trading strategy in place and actually keeping to it. You might be tempted to invest in a stock recommended by a friend or a TV infomercial, however doing so will only result in unnecessary losses. Many professional traders will have strategies in place. For example, some will only deal with companies that are traded on NYSE of NASDAQ, are of high trading volumes of at least 100,000 per day making it easier to sell a stock if a need arises. Most importantly, you should devise a strategy how long to hold on to a stock and what your risk to reward ratio should be.

Keep Cool

Trading with a cool head and nerves of steel are the best way to avoid losses and experience big gains. Avoid the hype at all costs since this could be a recipe for disastrous scamming schemes. Do not be lead by stock alerts from unknown source, trust only by well-respected leads and still do your research to make sure.