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Promising Penny Stocks

Step One

Open and fund your trading account. There are a number of brokerage houses offering services online, so be sure to shop for the best deal. Some companies will offer a certain number of free trades in order to secure your business. Some will let you open an account with no minimum. They may charge you $4.50 per trade, for example, but give you 10 free trades if you invest $2,500.

» Step 2

Step Two

Do your homework. There are literally thousands of companies traded on the OTCBB, and vast amounts of information in print. Thoroughly investigate all companies that you are considering investing in. Find reliable sources of information, and beware of something that sounds too good to be true.

» Step 3

Step Three

Settle on a company or companies that you wish to invest your money in. Take your time, and be certain before you make your first trade.

» Step 4

Step Four

Execute your trade. You can utilize the phone or go online to access your account. You will be given information regarding the last shares traded on the company you are interested in, and the bid and ask price. You are technically dealing directly with a seller of shares of stock, although the middleman broker is providing you access to the OCTBB. Looking at the ask price, decide upon the number of shares that you wish to purchase, and your account will be debited the price per share times the number of shares you desire to purchase, plus the broker's commission. You are now the owner of shares of stock traded on the OTCBB.

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