To start buying penny stocks, you must first open a brokerage account with a firm that supports over-the-counter (OTC) trading, as many low-priced shares are not listed on major exchanges like the NYSE or NASDAQ . Penny stocks are generally defined as shares trading for less than . Because they are highly speculative and prone to extreme volatility, beginners are advised to allocate no more than 10% of their total stock portfolio to these assets and use strictly defined risk management techniques. 1. Choose a Brokerage Platform
Selecting the right broker is critical to minimizing the high transaction costs and finding reliable data for micro-cap companies. : how to start buying penny stocks
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