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- 1). Learn about trading penny stocks by actually doing it. You can either establish an account with a full-service broker or you can open an account with an online broker. Each will require that you deposit cash or shares of stock to open the account. Each of them can provide you with research to make it easy to select stocks you want to buy. A full-service broker will hold your hand throughout the process, and charge you a hefty commission to do so. On the other hand, the commissions at an online broker can be as little as $5, but you will have to do much of the work yourself.
- 2). Write down certain pieces of information before placing your order. If you are dealing with an online brokerage house, you will need the ticker symbol of the stock, the number of shares and where the stock is traded. Most penny stocks are available "over the counter" or are on the so-called "pink sheets." Finally, enter what you wish to pay per share for the stock and the "good until" date, which will tell the brokerage house how long you want to keep the purchase offer open. Or you can tell your full-service broker the name of the company and number of shares and he will do the rest.
- 3). Sell penny stocks just like you purchased them. One call to your full-service broker, with the company and the number of shares you want to sell, and he will do the rest. If you are dealing with an online broker, you'll need the stock symbol of the company whose shares you are selling and the number of shares you wish to sell. You can either sell the shares for what they are going for in the market, or set a price. If you set a price, you'll also need to enter a date when the sell offer will expire.
- 4). Look for the proceeds of the sale in your brokerage account, less the commission, on the third business day following the day of the sale. You will then be able to purchase shares of another company, or leave the money for a while in your brokerage account, where it will accrue a small amount of interest.
- 5). Change your order to buy or sell stocks or cancel the transaction entirely so long as the transaction is not actually made. If you have a full-service broker, you may have slightly more time to do this than if you are dealing with an on-line broker that is totally automated so that the purchase or sale could be completed in a manner of seconds.
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