| In addition to money, you need a broker in order to | | | | included in the buy order: 1) The ticker symbol. 2) |
| play the penny stock trading game. Your broker will | | | | The market where the stock is being traded. 3) The |
| be your lifeline as well as the person that you have | | | | number of shares you wish to buy. 4) The price you |
| allowed the privilege of buying and selling stocks on | | | | are willing to pay (if you do not specify a price the |
| your behalf. He or she will create an account into | | | | purchase order will be made at the available asking |
| which you will deposit money. This account works | | | | price - this is not recommended). 5) The amount of |
| very much like a bank account with the added | | | | time you want your offer to stand. Sell orders are |
| benefit of containing stocks and bonds as well. The | | | | very much the opposite of buy orders. You state |
| proceeds from sales of stock will go into this account | | | | that you wish to sell your stock, the price you wish |
| and the money to purchase new stocks will be taken | | | | to receive, and the ticker symbol, the exchange, and |
| from this account. There are two types of brokers | | | | the amount of time you'd like your offer to stand. |
| full service brokers and discount brokers. Full service | | | | Investors often enter a bid price when buying stocks |
| brokers offer financial investment strategies, portfolio | | | | and an ask price when selling. If your bid price meets |
| assistance, and investment advice among other | | | | the ask price of another, then a transaction can be |
| things. This level of service in the game of stock | | | | made. There are often many standing orders of |
| trading however comes at a great price and that | | | | multiple prices available at any given time. However, |
| price comes in the form of a sizeable commission or | | | | when you check the stock quotes they will only |
| transaction fee. If you are trading penny stocks, the | | | | show the highest buy and the lowest sell rather than |
| fees for a full service broker will negate any benefit | | | | showing all points in between. Stocks are sold with a |
| you would receive from using their services. Discount | | | | 'best price' priority this means that stocks are sold to |
| brokers on the other hand can answer specific | | | | all with the higher buy orders first, and then trickle |
| questions you have about investing but won't provide | | | | down to the lower buy orders. If your buy order (or |
| quite the level of customer service. One thing that | | | | sell order) was placed at the same price as other buy |
| most people find infinitely enjoyable about discount | | | | orders, those will be sold in the order they were |
| stockbrokers and doing the research and playing with | | | | received. As a result of the ranking order, people |
| the nifty computer programs and analysis that most | | | | often find that only part of their order gets filled for |
| discount brokerages allow their clients to have | | | | a certain price. If part of your buy order was filled |
| access. People like being able to make buy orders | | | | early in a given day you may want to adjust your |
| from the comfort of their homes at any hour of the | | | | offer so that the remaining order may still be filled |
| day. They also can much better appreciate the price | | | | that day at a slightly higher price (while paying only |
| of $10-$20 per trade much more than upwards of | | | | one broker commission). If the order takes several |
| $100 that many full service brokers charge. Once | | | | days in order to be filled there will be a broker fee |
| you've decided on your broker and have taken care | | | | each day that a transaction occurs. You will need to |
| of the basics of getting your account in order and | | | | check with your specific broker about his or her |
| funded you will be read to trade. This process should | | | | policy on cancellations and order changing. In most |
| take no more than 3 days. The basics of trading | | | | cases orders can be cancelled or changed but there |
| consist of buy orders and sell orders. The most | | | | may be a fee involved. |
| important thing about issuing a buy order is to make | | | | Christopher Smith has been writing for for over 7 |
| sure you have the money in your account to cover | | | | years and has experience with both penny stocks |
| not only the order but also the transaction fees. | | | | and stock market investing. |
| There are essentially five things that must be | | | | |