This tells the broker exactly what price you are willing to pay (or sell for). If the stock doesn't hit that price, the trade doesn't happen, protecting you from overpaying. 4. Watch the Liquidity (Volume)
A stock might look like it's "up 50%," but if only 100 shares were traded all day, you might not be able to find a buyer when you're ready to sell. Check the to ensure people are actually trading it. 5. Follow the "Rule of 1%"
Here is a quick guide to help you navigate buying and selling penny stocks online: 1. Pick the Right Broker
Not all platforms are penny-stock friendly. Some charge high surcharges for "OTC" (Over-the-Counter) stocks or have restrictive rules.
Because penny stocks can go to zero quickly, many pros never put more than into a single penny stock. Treat it more like a calculated gamble than a retirement plan.
Apps that limit you only to major exchanges (like Robinhood) if you want access to the full range of "pink sheet" stocks. 2. Know Where They Trade
These trade on the NYSE or NASDAQ . They have stricter requirements, making them slightly "safer" than others.
