| In addition to money, you need a broker
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| | but also the transaction fees. There are
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| in order to play the penny stock trading
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| | essentially five things that must be
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| game. Your broker will be your lifeline
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| | included in the buy order:
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| as well as the person that you have
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| | 1) The ticker symbol.
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| allowed the privilege of buying and
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| | 2) The market where the stock is being
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| selling stocks on your behalf. He or she
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| | traded.
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| will create an account into which you
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| | 3) The number of shares you wish to buy.
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| will deposit money. This account works
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| | 4) The price you are willing to pay (if
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| very much like a bank account with the
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| | you do not specify a price the purchase
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| added benefit of containing stocks and
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| | order will be made at the available
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| bonds as well. The proceeds from sales of
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| | asking price - this is not recommended).
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| stock will go into this account and the
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| | 5) The amount of time you want your offer
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| money to purchase new stocks will be
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| | to stand.
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| taken from this account.
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| | Sell orders are very much the opposite of
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| There are two types of brokers full
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| | buy orders. You state that you wish to
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| service brokers and discount brokers.
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| | sell your stock, the price you wish to
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| Full service brokers offer financial
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| | receive, and the ticker symbol, the
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| investment strategies, portfolio
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| | exchange, and the amount of time you'd
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| assistance, and investment advice among
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| | like your offer to stand.
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| other things.
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| | Investors often enter a bid price when
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| This level of service in the game of
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| | buying stocks and an ask price when
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| stock trading however comes at a great
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| | selling. If your bid price meets the ask
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| price and that price comes in the form of
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| | price of another, then a transaction can
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| a sizeable commission or transaction fee.
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| | be made. There are often many standing
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| If you are trading penny stocks, the fees
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| | orders of multiple prices available at
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| for a full service broker will negate any
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| | any given time. However, when you check
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| benefit you would receive from using
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| | the stock quotes they will only show the
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| their services.
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| | highest buy and the lowest sell rather
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| Discount brokers on the other hand can
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| | than showing all points in between.
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| answer specific questions you have about
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| | Stocks are sold with a 'best price'
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| investing but won't provide quite the
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| | priority this means that stocks are sold
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| level of customer service. One thing that
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| | to all with the higher buy orders first,
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| most people find infinitely enjoyable
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| | and then trickle down to the lower buy
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| about discount stockbrokers and doing the
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| | orders. If your buy order (or sell order)
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| research and playing with the nifty
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| | was placed at the same price as other buy
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| computer programs and analysis that most
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| | orders, those will be sold in the order
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| discount brokerages allow their clients
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| | they were received.
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| to have access. People like being able to
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| | As a result of the ranking order, people
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| make buy orders from the comfort of their
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| | often find that only part of their order
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| homes at any hour of the day. They also
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| | gets filled for a certain price. If part
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| can much better appreciate the price of
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| | of your buy order was filled early in a
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| $10-$20 per trade much more than upwards
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| | given day you may want to adjust your
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| of $100 that many full service brokers
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| | offer so that the remaining order may
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| charge.
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| | still be filled that day at a slightly
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| Once you've decided on your broker and
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| | higher price (while paying only one
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| have taken care of the basics of getting
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| | broker commission). If the order takes
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| your account in order and funded you will
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| | several days in order to be filled there
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| be read to trade. This process should
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| | will be a broker fee each day that a
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| take no more than 3 days.
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| | transaction occurs.
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| The basics of trading consist of buy
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| | You will need to check with your specific
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| orders and sell orders. The most
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| | broker about his or her policy on
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| important thing about issuing a buy order
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| | cancellations and order changing. In most
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| is to make sure you have the money in
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| | cases orders can be cancelled or changed
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| your account to cover not only the order
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| | but there may be a fee involved.
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