It’s very easy to trade OTCBB Stocks. The first step is to find a reputable broker that allows you to trade OTCBB stocks. Ensure that the broker allows the trading of OTCBB stocks, penny stocks and pink sheets. Some brokers frown on this kind of trading or make it more expensive and difficult to trade them.

Once you have a good broker you can buy any stock or security you can afford. With certain stocks you will even be given margin. Margin allows you to buy more stocks than the amount of cash in your account. You can not trade OTCBB stocks on margin. Before buying these low priced volatile stocks you need to do a lot of research. There are many reputable sites to research penny stocks. There are a few linked around our site here.

Picking stocks is easy, picking ones that make you money is more difficult. Its not that easy to pick OTCBB stocks though. You have to wade through all the promotions, pump and dumps and front run stocks. These stocks are “pushed” by promoters and by smaller groups of traders looking to make a quick cash gain.

You must trade with rules and goals. Its easy to buy an OTCBB stock, watch it rise and you think it will rise forever and you forget to sell. Do you sell on the pullback, you should. A lot of penny stock traders think the stock will rest and then reach those heights again. Sadly they often end up losing their hard earned money as the stock never regains that high again. Don’t be greedy, set your goal of a profit and take it when it comes. You must trade smart, buy the stock at the right time and sell the stock at the right time and you have a profit, sounds easy right.

What is your strategy for trading these stocks? Are you a long term investor? Do you want to be in and out in a day? A combination of trading styles is also good. Just remember you bought the stock with a plan. Usually you buy thinking the stock will go up. If it doesn’t go up after you buy, you were wrong, that means you need to know how far down or how much money your willing to lose before you sell. “Plan your trade, Trade your plan”

Strategy is just as important. Is your goal to buy one winner and go for a doubler? Or is it to buy 10 securities and look for each to make minor gains?