Penny Stocks: How Much Is Needed To Get Started?

Many say penny stocks (Three dollars and under) are dangerous but if you’re a brave soul such as myself you might want to consider them as an option. If you succeed you can make some good money really quickly. That being said how much would you need to get started? Well I have three price points I recommend. It’s up to you, the reader, to decide which one is best.

First Price Point: If you’re completely new to stock the most important thing is to get started. I doesn’t matter how much you invest. Do note as you are new you will most likely lose money. Because of this it may be a good idea to start with a low amount. It’s better to make your mistakes with small sums of money then once you feel confident up your investment. This is probably the best option if you’re new in my opinion. Personally I started with fifty dollars. For two month I used 100 total and traded as much as possible to gain experience.

Second Price Point: If you’re not new to stocks and you have the money 1,000 dollars is the amount I recommend you start with. With every successful trade, if you use the entire amount, you’ll average 50 to 150 dollars profit. If you’re unsuccessful you’ll lose around the same amount every trade. These numbers are based on my experience trading stocks ranging from 6 cents to 40 cents.

Third Price Point: If you don’t have 1,000 dollars then use 500 dollars. Don’t start any lower because it’s not worth the time or effort in my opinion.