How to Play the Stock Market off the Board

By Business & Finance Last updated Sunday, April/21/2024

1). Develop a strategy for trading penny stocks before you begin to do so. Trading in penny stocks can result in out-sized returns thanks to the low price and high volatility. However, there are also major downside risks to these kinds of stocks. Companies that issue stock of this nature are often small and prone to rapid failure. The information about the companies can be misleading or inaccurate.
2). Find a broker who allows you to trade stocks off the board. Most major brokers allow off-the-board trading, but many of them charge high fees per share that may make doing so infeasible. Look for brokers that charge flat fees per trade or who charge low amounts per share if you're looking to trade primarily in penny stocks. As you will likely need to make many trades to secure gains, pick a broker who has the right fee structure.
3). Start trading in penny stocks, informed by either your research into the companies or by technical analysis (which just means trading based on price signals only).

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