Buying Stocks Under $1
While there are plenty of companies being publicly traded on the stock market whose shares are valued at large amounts of money, there are also those who are fairly cheap. There are even companies whose stock is valued at a dollar or less. While these shares, commonly referred to as "penny stock" due to the fact that they trade for less than $5, are cheap, they are most certainly not for long-term investment. Stocks valued at a dollar or less are for making a little bit of money quickly, and then selling off. Luckily, this process is not as complicated as it may sound.
Step 1
Research companies whose stock is currently valued at a dollar or less for one share. As the value of a company's stock is public information, there are many resources where you can go to get this information. Some financial websites, like hotstocked.com, even have entire sections devoted to this kind of stock (see Resources below). This information is incredibly valuable to day traders, or people who buy and sell a stock within the same day in an effort to turn a profit. Be sure to write down the company name and stock symbol of any company that interests you.
Step 2
Contact your stock broker with a list of companies that interest you. Due to the low cost of the stocks and the frequency at which you'll be trading, an online broker is best. This way you can constantly monitor the stock and you'll have complete control over the exact moment at which you buy and sell (see Resources below).
Step 3
Purchase stock in the companies of your choice. Once this is done, it is incredibly important that you monitor the market. As the stocks are valued at so low, even a gain of 10 cents a share will make for a huge percentage gain for the company as a whole. If you buy enough shares, you stand to make money from any gain whatsoever. Remember that you aren't buying dollar stocks because you want to get rich--you're buying them because they stand to make you a little bit of money very quickly.
Step 4
Sell your stock picks. Once it looks like it's reached its high for the day and you've made a profit, sell your shares and get out. At this point you can collect your earnings, consider the events of the day and decide whether or not you want to repeat the process again tomorrow.
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