had you bought this the first day of the email alert you would have doubled your money....remember not all of them do well...you need to know who is who and how it trades...no shares traded before the program was started....now it is liquid and up substantially from initial email...from .36 cents
i wrote this the other day on this thread....yes it is a pump and dump....this doesnt mean one cant profit from it...and the only reason i suggested this is A) ive actually made good money with tis b) the OP's initial capital is $1500.00 ..so i suggested this would be a good place for him....it takes a while to learn how to extract money from a pump and dump...peace
In order to purchase Penny Stocks I would have to change my broker. I currently use TradeKing because they have among the cheapest commisions (4.95) for regular stocks. In order to buy penny stocks, however, the commission is a percentage (unsure of the exact rate) but it becomes pretty expense. Its actually ridiculously high. I remember I wanted to buy like $500 of a penny stock a year ago, and the commission was $50 dollars just to buy. Could you recommend a broker which has low commissions for penny stocks and requires less than $3,000 to open an account?
Also, I don't know if it would be worth it to change my broker considering the lack of funds I currently have. I currently own 2 stocks and don't know how difficult it would be to transfer them. When I get over $5,000 though I think I am def going to go to IB though.
Well, Monty, you have exactly the right idea. Stick with you're plan. You don't care if you lose it all, you want to learn. Don't like the idea of trading penny stocks, because you'll learn little about the real market that way. Penny stocks, as has been pointed out, are pump and dump, ponzi scheme, chain letters. The last one's in and those too slow to get out lose, and they are illiquid as hell sometimes. Better stick with your plan. The idea of doing some paper trading first is a good one. And begin to study options. For small accounts, option trading can be the answer because you can have both defined risk and leverage. They are also a wonderfully efficient way to lose money, and thus accelerate your education. Best of luck and enjoy your $1500 education.
Wow! $160,000 for college? If your parents had just given you that and you invested it at 8%, you'd have $3.47 million after 40 years. The trading thing? You WILL lose it all, but hopefully you will learn something so the next time it takes a little longer to lose it. Good luck. I have some of those books, but you do not learn to trade reading a book. But, we all had to start somewhere.
IB will require your life story as well as proof of >$40k annual earnings OR $100k+ liquid net worth to give you an account with more privileges than just buying stocks. (You can't sell stocks short, can't trade options or futures or forex or ANYTHING)
You have $1500 and commissions are $10 round trip, that is 0.67% for commissions. Even if you use 2:1 leverage, you must catch a 0.33% upside move to breakeven. So, you must either swingtrade or follow trends (legally, you couldn't daytrade without at least 25k either). Does your broker allows margin on only 1.5K? Most brokers require 2K for margin. Buying a 2X index ETF (like DDM) on margin, you get 4:1 leverage, so you'll need a 0.17% move to breakeven commission costs. $50 per day on a 1.5k account? That is 2.33% of NET profits daily. You'll require to catch an even larger move, considering your high commission costs. So, no, this is NOT a realistic expectation. Consider 15-20% a good percentage.