How should I trade stocks?

Question

I am a cautious investor, looking to invest a small amount of cash into penny stocks. I am new to this so I am only going to use $50 dollars to start with. I want to trade with a fee that isn't going to be too big that it will take away from my earnings. Thanks.

Answer 1

Don't trade penny stocks if you're cautious. Learn about the markets first. At those amounts, no matter what broker you choose, your fees are going to be a large percentage of your purchase.

If you only have $50, don't invest. Try paper trading first. Actually, first learn how the markets work.  

Answer 2

A "cautious investor" does not invest in "penny stocks".

Answer 3

You will need more than $50 to open an account with any reputable brokerage firm here in the United States.

Penny stocks are not considered investment quality securities but rather trading vehicles and should not be purchased by amateurs.

Answer 4

A cautious investor may start to invest in penny stocks after 5-10 years of trading Large, Mid & Small cap stocks.  Anything less is simply gambling.