F.A.Q.s

Frequently asked penny stocks investing questions.

Out of the thousands of inquiries I've received, there's three questions that consistently get asked over and over again. I'll try to answer each question as simply and effectively as possible. Thank You, Charles Heath.

1. Do I need any special skills or experience to get started trading penny stocks?

The short and simple answer is, No. However, do seriously study the stock market whenever you get a chance. A good dose of common sense and some honest effort will go a long way toward becoming a successful trader or investor. The more time you put into studying the market the more successful you'll be.

You will find that trading and investing in low-price common stocks is a very interesting and enjoyable endeavor. My experience has been that the more you know, the more you want to know. This is one of the few things left in life where an ordinary person can financially make up for long lost time.

The emergence of the Internet and World Wide Web has made it possible for everyone to have access to information that was not readily available in the past. This has leveled the playing field dramatically. You can now have access to all the "strategic Information" you need to make winning trades.

2. How much money does it take to get started investing?

You can get started buying, selling, and trading penny stocks with just about any amount of money. The first thing you do is open up a trading account at one of the deep-discount brokers. Some require no initial deposit at all. Others require $500 to $1000, and others want $2000 to $5000 or more.

You can buy 1000 shares of a 50 cent stock for just $500.00, plus a couple of bucks for the brokerage fee. The cost of the stock and the total number of shares is what determines your startup cost. Buying smaller stocks allows you to control more shares which will offer you much greater profit potential.

3. Can I make a million bucks before lunch, or something similar?

No, You won't find any "get-rich-quick" hype here ! Having said that, let me also say that you really can make yourself some very impressive gains within a relatively short period of time. There's really no limit on how much money you can make on a stock. Some people make 2 to 3 trades a year and make $10 - $15,000 in profits. Others might have a 20,000 share block and ride it up $3.00 to $4.00 a share, in no time at all.