Penny Stocks Risk and Reward:
As we know that a huge risk and reward
trading possibilites can be seen in
penny stocks, because they have a volatile
nature and if some day they are gaining 50%
in a day then the next day they can show
70% loss also. I would recommend traders
to use a good risk and reward in their strategies
every time so that they can take a good advantage
of the volatility.
For Example: If you are setting a stop loss of 10 pips
then your take profit levels should be 30 to 40 pips.
This kind of Risk and reward will be best to give you
consistent income plus can reduce the size of your
losses also.
Penny Stocks Brokers:
There are so many brokers online
which can give you a facility you to do
trade with penny stocks in stock market
but its important to choose a good broker
for you otherwise they can scam you and
can run with your money. Futhermore there
could be so many insider scammers who can
collect money from you by higher brokerage fee,
Market making policies, Execution problems etc.
So now the question is how to selection a
good broker for Penny Stocks Trading?
Here are some of the solutions which can
help you to find out the best broker for
penny stocks trading.
1.Check the Regulation: First of all its
important to know that our broker is
regulated or not, a regulated broker would
have more security that then non regulated
broker and in some cases our money can be
safe with regulated brokers.
2.Investment: If a broker is going for a high
investment then it means its not a good thing
to deal with him, as far I know good brokers,
don't ask for a big money you can start your
business with small amount of money with them
without any problems
3.Brokerage:Good brokers have always less
spreads and they charge less brokerage from
their clients. If we are paying higher brokerage
that it means we are paying 20 to 30% our earning
to them eventually. So we have to avoid it.
4.Support: We have to also check this that
which kind of support facility we are getting
from our broker. Are they providing your nice
and quick solution of your questions or not?
If support is poor then it mean they are not
feeding their employees properly.
5.Payments: This is also one of the important
thing that we should check in our broker.
Are they capable of paying our money or not
Its important to check that how much days they
are taking to forward your withdrawal, good brokers
always pay the withdrawals within few hours even
some of them pay instant to better to work with
them in this industry.
Furthermore I have also found a good list of
U.S Regulated Penny Stocks Broker houses
list which will help you to choose a good broker for
you. But Personally I don't know them deeply just
have information from our sources.
There names are:
1.Choice Trade
2.Charles Schwab Corp
3.Interactive Broker (IB)
4.Scottrade
5.TDAMERITRADE
6.TradeKing
These are the recommendations but please
choose a broker properly, and do the proper
search about them before putting any money
with them. I wish you all a great trading carer
and success. Have a good time folks.
As we know that a huge risk and reward
trading possibilites can be seen in
penny stocks, because they have a volatile
nature and if some day they are gaining 50%
in a day then the next day they can show
70% loss also. I would recommend traders
to use a good risk and reward in their strategies
every time so that they can take a good advantage
of the volatility.
For Example: If you are setting a stop loss of 10 pips
then your take profit levels should be 30 to 40 pips.
This kind of Risk and reward will be best to give you
consistent income plus can reduce the size of your
losses also.
Penny Stocks Brokers:
There are so many brokers online
which can give you a facility you to do
trade with penny stocks in stock market
but its important to choose a good broker
for you otherwise they can scam you and
can run with your money. Futhermore there
could be so many insider scammers who can
collect money from you by higher brokerage fee,
Market making policies, Execution problems etc.
So now the question is how to selection a
good broker for Penny Stocks Trading?
Here are some of the solutions which can
help you to find out the best broker for
penny stocks trading.
1.Check the Regulation: First of all its
important to know that our broker is
regulated or not, a regulated broker would
have more security that then non regulated
broker and in some cases our money can be
safe with regulated brokers.
2.Investment: If a broker is going for a high
investment then it means its not a good thing
to deal with him, as far I know good brokers,
don't ask for a big money you can start your
business with small amount of money with them
without any problems
3.Brokerage:Good brokers have always less
spreads and they charge less brokerage from
their clients. If we are paying higher brokerage
that it means we are paying 20 to 30% our earning
to them eventually. So we have to avoid it.
4.Support: We have to also check this that
which kind of support facility we are getting
from our broker. Are they providing your nice
and quick solution of your questions or not?
If support is poor then it mean they are not
feeding their employees properly.
5.Payments: This is also one of the important
thing that we should check in our broker.
Are they capable of paying our money or not
Its important to check that how much days they
are taking to forward your withdrawal, good brokers
always pay the withdrawals within few hours even
some of them pay instant to better to work with
them in this industry.
Furthermore I have also found a good list of
U.S Regulated Penny Stocks Broker houses
list which will help you to choose a good broker for
you. But Personally I don't know them deeply just
have information from our sources.
There names are:
1.Choice Trade
2.Charles Schwab Corp
3.Interactive Broker (IB)
4.Scottrade
5.TDAMERITRADE
6.TradeKing
These are the recommendations but please
choose a broker properly, and do the proper
search about them before putting any money
with them. I wish you all a great trading carer
and success. Have a good time folks.
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