Looking For How To Make Money Online? Check out Penny Stocks
If you’re like most of the world right now, coronavirus is putting you somewhere for longer than a few minutes a day, right? I’m talking about quarantine. I’m sure while you’re sitting in your house, apartment, basement, or wherever your computer is, you might have wondered how to make money online. It’s understandable especially right now. Social distancing and stay at home orders haven’t made work or making money an easy thing especially if your job involves something other than an internet connection.
But there’s a solution; something that’s open 5 days a week (minus holidays) that has people making big money. I’m talking about penny stocks. Now, before you say, “well aren’t those all scams?” or saying something like “I don’t have time” are just excuses in my book. Don’t take offense but seeing, first hand, how much money is being made on a daily basis with penny stocks tends to refute most arguments against trading them.
What time would be better than now to learn how to buy penny stocks and make money? If you’re like millions of Americans, you’re sitting home right now not working. This is a perfect time to learn a new skill and one that could end up making more money than your day job. In fact, one of the most popular Google searches right now is “how to make money online” and we couldn’t think of a better way than trading.
How To Start Trading Penny Stocks & Make Money Online
First thing’s first, how do you start making money online with penny stocks? I’m going to assume 1 very big and important thing right now: you understand the basics of buying and selling stocks. Having a grasp on education is so important. So before you even start asking yourself, “what are the best penny stocks to buy right now,” make sure you understand some basic skills of trading. If you are just getting started, that’s ok too, we’ve got plenty of resources on the website that gives you the basics of penny stocks.
Best Online Brokers For Penny Stocks
Back to what I was saying; Step One: Get an Online Broker. Finding one of the online brokers for penny stocks is important. You’ll be considered a “self-directed investor” at this point. All that means is you are making your own decisions and won’t have an advisor to guide you. You’ll need to include self-explanatory information about your income, job, taxes, living status, net worth, etc. to fill out the basic forms and set up your account.
Read More: Best Penny Stock Brokers For 2020
Funding Your Penny Stocks Trading Account
Once you’ve done that (and get approved), it’s time to fund your account. In most cases, you can simply go to a section of your penny stock broker’s website or app and set up an account to transfer money from. Most people will choose a bank account. But some apps and accounts allow for mobile check deposits and even things like Zelle or virtual wallet transfers.
Penny Stocks & Timing: Have A Strong Internat Connection
Last but not least, you’ll want a strong internet connection. One of the most important things to consider when trading penny stocks is timing. Since these low priced shares can move quickly, even a few seconds matter. A slow internet connection can be your downfall. It can lead to delayed quotes, frozen trading screens, and even wrong information.
Things like news come at a moment’s notice. If your news scanner isn’t optimally running, you can miss out on a big trade and not know it. After doing these three things, you’re basically set up to start making money online with penny stocks.
How To Find The Best Penny Stocks To Buy
This question is somewhat of a subjective one. When it comes to finding the best penny stocks to buy, there are many different things you’re going to be looking at. Some things are more easily understood while others will involve some learning on your part. So let’s go over some of the easier ways to find the best penny stocks to buy:
Penny Stocks & News
Probably one of the easiest things to find is news. Penny stocks tend to swing in one direction or another after making a big update or announcement. Also, as we’ve seen in more recent times, sector and industry news can also be impactful, let me explain. What’s been going on for the last few months in the news? If you said “coronavirus” then we’re on the same page. A vaccine is one of the most prominent things making headlines right now.
We’ve seen a surge of interest in penny stocks that have some type of connection to either a vaccine, prevention drugs, or testing. Companies involved in anything from cancer research to medical devices have received a benefit from the market based on speculation from traders. With the government stimulus and Federal Reserve pumping trillions into the market, we’re now seeing some companies benefiting from the economic impact of the coronavirus. This includes anything from oil & gas penny stocks to gold stocks and anything in between. While many of these companies didn’t even start reporting news related to coronavirus, initially, they gain speculative interest on the potential that “could materialize”.
Needless to say, penny stock news and broader sector/industry news are important to take note of. Furthermore, make sure when it comes to industry news, you think outside of the box. For example, if we’re in the house most of the time because of stay at home orders, what are your activities going to entail? For those who thought about food, they might have traded (and did trade) Blue Apron (APRN – Free Report).
The company didn’t come out with any related news. But speculatively speaking, food delivery was a viable argument to make if people are going to be home all of the time. In light of this, we saw APRN stock make a move from under $5 to over $25 within a few days. That’s just one example of how “bigger picture” news impacted a volatile penny stock.
Penny Stocks & Momentum
Piggie-backing off of this, some penny stocks start gaining momentum after news comes out; Blue Apron was an example. But then you also have companies like Alpha Pro Tech (APT – Free Report) which was one of the original coronavirus penny stocks to break out big. It actually managed to run from under $5 to highs of over $40 a share.
The initial momentum was sparked by an interest in companies selling face masks. That saw the ball start rolling. As speculation grew, so did interest in stocks like APT. A similar situation was seen with NovaBay Pharmaceuticals (NBY – Free Report) recently but not to the extent of APT by any means. While traders first acted on news, more piled on as trading momentum grew.
The important thing to understand about trading simply based on market momentum is that hype can play a role. You can also look at Inovio Pharmaceuticals (INO – Free Report). This was another speculative coronavirus penny stock we had discussed early on. Not only did it rally from under $4 to nearly $20, it still actively trades above $7 currently.
When the hype is big, penny stocks tend to see lots of volume. That’s good when it comes time to sell your shares. An active/liquid market makes it easier to sell stock at an optimal price without dramatically impacting the market. But when that hype dies down, the volume tends to as well. This can make it hard when it comes time to sell penny stocks.
Penny Stocks & Technical Analysis
This is the topic I was talking about that will involve further study. Technical analysis is a constantly evolving topic. There are hundreds, if not thousands of technical indicators to consider when looking at penny stocks to buy. I won’t get into all of them in this article. But understand that many of these technical indicators work with other technical indicators.
So most traders won’t solely rely on a single indicator to base their trading decision on. Also, keep in mind that these are infallible. Just because the rule of an indicator may suggest it’s time to buy certain penny stocks, doesn’t mean it can’t be wrong.
Things like sector or company news can put a wrench in your plan. Other things like an insider or institutional trading can also cause an indicator to be incorrect. But as I’ve said in the past, using technical indicators as part of your strategy can help. At the very least, think of them as a flashing light that indicates you should start monitoring a penny stock.
Can You Get Rich From Penny Stocks?
I’ll finish with this topic. While it’s based on your personal success, you can make money with penny stocks. How you define “rich” is a totally different topic. Needless to say, if you’re new to penny stocks, understand that this is like any other investment. You can hone certain skills to become consistently profitable at it. Just know that it takes time to learn how to invest in penny stocks and doesn’t come overnight.
If you think about just opening an account, throwing money in it, and taking a stab at some random 3, 4, or 5 letter symbol because you saw a tweet about it, be ready for a bumpy road. There’s no “get rich quick” strategy to penny stocks despite what you might read or see in movies.
At the end of the day, you can learn how to make money online and you can do it every day with penny stocks. If you’re interested in learning more, we’ve got a 60+ page book that our subscribers receive for free. So if you’re looking to make money with penny stocks online, subscribe for free and get this beginner’s guide and start learning.