These days virtually nothing comes cheap especially not ownership of companies through shares of stock. All too often, only the rich can invest in these companies and people complain that the rich keep getting richer.

Fortunately, its time to level the playing field. Yes, you can easily buy penny stocks for as low as a penny for one share of stock, hence, the name. Well, of course, you have to purchase more than one share, preferably in multiples of hundreds, to get a decent return on your investment.

Benefits of Penny Stocks

The benefits of trading lie in the reasonable assumption that you play your cards well. First, starting is easy and quick. You just need to find the right online discount broker, deposit the required amount to start your account, determine your criteria for certain trading actions, and watch as your profits rise, even on modest levels. Indeed, you have cheap stocks to buy now at the click of your mouse.

Second, it is a great way to learn about stock trading, markets and other investment fields. Initially, you will only be required to learn about basic trading terms such as ask, bid, spread, hold, limit and market order, to name a few. Thus, you will not be overwhelmed with technical jargons that can discourage future trading.

Third, the potential for great rewards at low share prices is highly possible with penny stocks. You do not need to possess great riches to dabble in penny stock trading, only a few hundred dollars and the guts to slowly but surely play with the big boys.

Penny stocks are the cheap stocks to buy now. Just keep in mind that like blue chip stocks, penny stocks are highly speculative, thus, you have to be educated about the risks and rewards associated with stock trading.

Before You Start Buying Penny Stocks

Speaking of risks and rewards, you must adopt precautionary measures that can lessen the risks and improve the rewards of engaging in penny stock trading. After all, you want to preserve as much precious capital as possible while building on your gains.

With that said, here are a few practical precautions before indulging in the best cheap stocks to buy now with your starting account:

* You must do your due diligence about the stocks you are considering. Since penny stock companies still comply with reporting requirements with the Securities and Exchange Commission, you have a wealth of information in your hands. Browse the Internet also, to have a look at the company history and performance.
* You have to subscribe to an online discount broker or hire an experienced stockbroker to handle your penny stock accounts. Again, it pays to do your research.

You will observe that these precautions are similar to buying blue chip stocks. Well, of course, you are still investing your money although in smaller amounts! As can be expected, the methods to determine the stocks to trade in will be similar, whether it is for blue chips or penny stocks.

So, now that you know about the cheap stocks to buy now, it is about time to start seriously considering the merits of investing in penny stocks. Soon, your pennies will grow into dollars.

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