Now, with Pennies you have to stay on top of them, it is a
"full time job". There is a lot of money to be made in pennies and a lot of money to be lost.
I read, read, read. All the free ones......when I see some information i find interesting, I pull the financials on the company.....pour over their paperwork. Then I come up with the growth I'm looking for, get in and get out without trying to get too greedy.
There are very few pennies that I get into for "the long haul" but every now and again one will catch my eye that I think has potential. Of course, lightning is not going to strike very often....maybe only once in a lifetime. However, I'm prepared for that (it only happening once in a lifetime and the others petering out).
With "traditional stocks" (established companies) it is much easier to "invest and forget" for long haul investing. However, pennies require a lot of work especially before investing and during the investment period (which might be a few hours or a few days unless you've come across one that you think has the potential to explode).
Remember, by the time you read or hear anything it is already reflected in the stock price.
I'd suggest that you not only read everything you can about stock/business trends (all the free blogs, WSJ, Barron's, pay blogs, etc that you can stomach) and then simulate investing in pennies with "$10,000" for a few weeks to see how you do. Remember, due diligence on a company is key and make sure to look at their financial records yourself.
I'd also only invest money into pennies that you are prepared to lose. I have made "tons" of money in pennies but I have also lost tons (I've made more than I've lost). Pennies are very volatile, which means for big gains and big losses in a short period of time. The nice thing is, that when I grown my initial investments 100% I returned my initial to my account. Everything I've done in pennies in the last 4 years has been above that initial level!
Anyway, when you are ready, I'd suggest using
Choice Trade for pennies. $5 trades and no surcharge for pennies.
DISCLAIMER
This is just the way I do things. I'm not a stock broker or a financial professional. My only qualifications are my MBA (reading financial statements) and my limited (but decently successful) experience in trading penny (5+ years) and traditional stocks (12+ years). The above represents my opinion, take it for what it's worth.
