Verify the company’s business model and physical address to avoid "shell" companies.
Penny stocks usually trade on the Over-the-Counter (OTC) markets or the Pink Sheets rather than major exchanges like the NYSE or Nasdaq. These companies often have smaller market caps, lower liquidity, and less stringent reporting requirements. Because they don't trade frequently, small buy or sell orders can cause massive price swings. Step 1: Set Up a Brokerage Account how to buy and sell penny stocks for beginners
Limit any single penny stock position to 2% to 5% of your total portfolio. Verify the company’s business model and physical address
Because these companies are small, information can be scarce. You must be your own investigator. how to buy and sell penny stocks for beginners