Hi; I am new to trading penny stocks. Have been trading stocks for many years at the Norwegian and Swedish market, using the brokers tools. Have set up an account with Zecco, but got info about their limit to $0.01 min. value of accepted stock value. Then been looking around, and maybe will choose eTrade / any recommendations from users here ? Have been "paper trading, or "investigating"" for a while, using barchart.com, and this looks ok to me. Have also been looking at StockCharts, and understand that this is a very powerful solution.

My question is, an eTrade account, and StockChart ExtraRT will be a workable combination for penny stocks, at OTC and pink ?

rgds. Bjorn

asked Oct 28 '12 at 07:05

kaupang's gravatar image

kaupang
71 35


Stockcharts is a very good and inexpensive charting service.

I do not trade penny stocks myself, as the business of trading penny stocks has become very suspect over the last few years. There are quite a few people who get on the Internet and build a business of pumping up penny stocks (after they have bought them), in hopes that their followers will buy the shares while they dump them. I would be VERY careful if you are following any penny stock traders currently (especially someone who purports to be really successful).

Additionally, penny stocks actually trade on pretty low daily volume. One of my personal criteria for a stock is that it must trade at 200,000 shares daily. Otherwise, there is not enough liquidity to exit the stock on some days.

In regards to finding a broker that allows trading of stocks valued less than $0.01, I do not know of any broker that allows that in the U.S. Although, @Sharptrader (who posts here regularly) may know of a broker that offer that type of access to the markets.

Finally, while I can see that you are looking for some help and answers here, I think that my best and most helpful response to you is to warn you about the prospects of trading penny stocks. I would suggest raising the bar a little higher and start with stocks trading over $1 and have an average daily volume of at least 150,000 shares. A service like Stockcharts can help you with both identification and analysis of those types of stocks.

Good luck.

link

answered Oct 28 '12 at 19:26

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Anonymous
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edited Oct 28 '12 at 19:28

1

Hi Bjorn Annonymous & Windsurf are giving you very good advice. There are even some paid subscription services that are fronting these pump & dump penny stock operators.

If you are still very keen on low priced stocks, you could maybe investigate Motley Fool's 'Hidden Gems" service.

I've paid serious tuition money at the University of Hard Knocks to learn these lessons. Ouch! :-)

(Oct 28 '12 at 20:41) Petero1298 Petero1298's gravatar image

You can use Scottrade for sub 0.01 stocks for sure because I was into trading them for a while. Sogotrade, I'm not quite sure, it seems I always used Scottrade for these... actually they may not let you trade pinks on that broker, Scottrade you can though. Other pennystockers use interactive brokers (IB), and I believe speedtrader handles them also. For pennystocks though, you need a quick interface, which is why Scottrade works well, ie. the cost in commissions is worth the execution time... a slow interface can cost you $!000 bucks really fast. I haven't tried speedtrader or IB yet. I remember Zecco being to slow for my tastes.

Regarding trailing stops, most brokers make you use limit orders for penny stocks or rather stocks under $1, but it seems to me the non mainstream more serious ones usually have more options... so look into IB or speedtrader. You may have to call to clarify that stops are allowed below a certain price.

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answered Nov 05 '12 at 02:56

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BigD
11 1

Hi guys; Thanks for answers and advice. I am reading and listening. I have been trading since writing Point&Figure charts, and later used pc (when modern times came). I am doing my dd on myself, am aware of all those newsletters, I am in principle very skeptic to all ads, so don't worry about this.

Back to my initial question(s) - level 2 providers, Investorshub should also be a good variant ? Another question; trailing stop . Zecco have this feature, but only on stocks value >$5, anyone having this feature for penny stocks ?

Adn to all of you - I read a lot of QA here with great interest, and big "value".

rgds. Bjorn

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answered Oct 30 '12 at 01:31

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kaupang
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Asked: Oct 28 '12 at 07:05

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Last updated: Jul 22 '13 at 21:12