I have been thinking about opening up an online Brokerage Account as I have had pretty good luck with picking stocks in the past. Just one example where I was quiet upset I didn't have the money for myself at the time, was selecting Rambus as a stock pick for my Portfolio Mgt class my last year of college, we bought it at $7 & they sold it this summer at $32. Well, now I do have some extra money to play with and really want to get started. I am confident in my DD abilities, especially with the news services provided by my company, as well as my ability to interpret financials etc. This forum seems to be a great place to share picks and get info so I am sure I will be here quiet a bit. Here are my questions:

1) What online Brokerage should I consider, since I do plan on trading penny stocks as well.

I had planned on going with Scottrade, as my friend has had nothing but good things to say about them. Do they permit trading penny stocks? Any info on this would be great.

2) Another one of my friends has made a ton of money trading penny stocks in the past year. He started with $500, made that back and has rode free shares and his Balance is $5K at the moment. Like all investing I know it's risky, but overall have you all experienced good luck with Pennies as well?

I would appreciate any other advice you have as well. If it was inappropriate for me to ask this here I apologize. Thanks in advance.

Your questions are not inappropriate at all! Once you are here at this message board, you will learn that the people here are all really helpful and nice for the most part. I started trading pennies about 4 months ago and have been very successful. I started with about $2000, and within 2 months I had a portfolio balance of just over $8000. I averaged down the entire month of February and so far the month of March has seemed to hold pretty steady for the most part. Now would be an excellent opportunity to get in, as I feel a number of stocks are currently oversold and undervalued. I wish I had some free cash to purchase more, but I refuse to sell most of my current holdings at cheaper prices.

I use scottrade to do my penny stock trading. Scottrade charges $12 for any order on the OTCBB market (these can be done online). Unfortunately though you cannot trade stocks on the pink sheets online, so you must place these orders with a broker for $22. I have heard from people that there a few cheaper options, but there are also more expensive options. I have had nothing but great experiences with scottrade and their customer service people and brokers and exteremely helpful. My orders usually fill very quickly also (both buying and selling).

Now I can't wait to get started. I am going to open a Scottrade account next week.

Lets use UVCL as an example:

It's been trading around $.01 to $.02 today, and in the penny forum I see many folks have traded it quiet a bit over the past few months.

If I were to purchase $500 of UVCL , at .024, that would be 20,833 shares correct?

So, lets say it then icnreases to $.17, again, would I be able to sell the entire position at that amount (using a limit order?) for proceeds of $3,541?

Yes

So, lets say it then icnreases to $.17, again, would I be able to sell the entire position at that amount (using a limit order?) for proceeds of $3,541?

Depends if there are enough buyers at that level.

[This message has been edited by VNGNTN1 (edited March 16, 2004).]

"Depends if there are enough buyers at that level."

I do understand that, as is the case with all limit orders so I don't think I asked my question correctly.

I guess I just want to make sure there isn't anything I don't know about when it comes how market & limit orders are executed for Penny stocks. If I placed a market order at $.17, would it sell pretty near it or due to the low volume could I see it sell 4 or 5 cents lower? Just curious, and sorry if it's a bad question.

VNGNTN1, I do not know anything about UVCL, I was just using it as an example. My friend had a lot of luck trading it late last year and early this year though. He sold it at $0.17, so that is where I came up with that.

Thanks!

quote:

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Originally posted by tntrader:
So, lets say it then icnreases to $.17, again, would I be able to sell the entire position at that amount (using a limit order?) for proceeds of $3,541?

"Depends if there are enough buyers at that level."

I do understand that, as is the case with all limit orders so I don't think I asked my question correctly.

I guess I just want to make sure there isn't anything I don't know about when it comes how market & limit orders are executed for Penny stocks. If I placed a market order at $.17, would it sell pretty near it or due to the low volume could I see it sell 4 or 5 cents lower? Just curious, and sorry if it's a bad question.

VNGNTN1, I do not know anything about UVCL, I was just using it as an example. My friend had a lot of luck trading it late last year and early this year though. He sold it at $0.17, so that is where I came up with that.

Thanks!

I definitely plan on contributing my own DD to this forum and look forward to the times ahead.

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I am bias, but I really like ameritrade. I like how you have the whole array of trades at the click of a button, as compared to phoning in orders. 10.99 for all equity trades is awesome. Since I flip, the whole ameritrade apex (free l2, real-time news, stock analyzer, paper trade confirmation, etc) thing they got going is just an added incentive to playing the game.

As for scottrade, not a bad choice as well if you don't do pinks. $500 to open an account is a plus if you dont have a lot of initial capital. You don't get many tools to work with, but since you are comfortable with doing your own due dilligence, that shouldn't be a problem for you.