from start to finish, like can i use my debit card for the investment? How do I get started? I have never done this before so the explanation will have to be detailed.
THANKS Don't - if you have to ask. You'll get eaten alive. It's really not that difficult. You need a broker that trades in "pink sheets." This is the term for penny stocks.
Beware. Many have lost thousands in penny stocks, and the odds are against you.
That is because often the volume (number of shares) is so low that you may have a stock that doesn't have any shares traded. Meaning that you might get a stock that you have a hard time selling at all, much less at a profit.
There are also scam artists who team together to push and promote a penny stock. On a rise they ditch out leaving everyone else holding the bag. The fundamentals are often so bad for penny stocks. (that;s why they are so cheap) that the stocks only move on rumors, not actual company actions.
Penny Stocks are just too risky for beginners. Do some research on your own, but you'll hear it over and over.
But if you really want to pursue it, look for a broker that trades in Pink Sheets. You trade penny stocks like any other stock. I suspect most brokers will buy and sell them for you.
Whether or not you can use your debit card is up your broker.
Read Rich's answer again. He gave good advice.
In my opinion penny stocks are like gambling. Be prepared to loose any money you use to play these. You may be able to transfer funds using your debit card but the broker will want a funded account to trade.
If the NYSE and NASDAQ are like a volleyball game, then penny stocks are like a bar brawl. Legitimate companies are few and far between. There are many outright stock selling scams running right up against the line of legality and some that cross over into fraud. There are a few examples of good companies that were under a buck, BYBI and FRPT come to mind.
Most penny stocks are news and hype driven, read message boards such as raging bull and Investors hub. But when you read these keep in mind that the MANY of the posters do not have your best interests in mind. They just want to unload the stock they bought earlier at a lower price. Assume everyone is lying. But it wqill give you an idea of how the game is played. Learn how to look up authorized shares at Sec. of State web sites. Every state has one now. Stay away from stocks that have authorized shares in the billions. and if you see a stock at 0.0001 and think it can't go any lower, you are wrong. There is a nasty trick called a reverse split and it is legal and basically wipes out the shareholders so the company can start dumping shares again there is a board on investorshub dedicated to reverse split repeat offenders. Thats a good place to start to see the ones to stay away from.
If you decide to do this, only do it with money you would take to a Casino or spend on going to ball game. Odds are that you will lose it but once in a while there is good one that comes along. One guy I knew who did well playing the penny pigs took 30-40% and never looked back. Stick with that rule and you may do well. | 