We will take a look at the European stock markets to learn more about how to start buying penny stocks. The Austrian-based broker offers a wide range of different financial products, a deposit guarantee of € 100,000, various types of orders, rapid support and the profit tax of your traded shares, as opposed to brokers from abroad, completely automatically.
Just recently, stock market was named Test Winner by the Consumer Studies Association and is officially one of the best and safest places to trade stocks in Austria!
Of course, you can also have a look at our stock portfolio comparison & test at any time, where we introduce further stock portfolios that are suitable for Austria. If the registration is completed with a broker of your choice, it goes on already to the next step!
How to start buying penny stocks?- Select stocks
Once the deposit is opened, it can also go directly into the stock trading! But which stocks should you buy at all?
At this point, do not let yourself be overwhelmed: Buying the right stock can be a challenge for the number of different companies. So where do you start to get the overview?
A good start is the companies you already know: who made your computer? Who is behind your favorite food? Where do you like to shop online? These and similar questions make you limit yourself to a few stocks at the beginning. Make a note of 4-5 names and just see if you can buy stocks from these companies.
At the same time you are not subject to the so-called “Local bias”. This means that you should not buy certain stocks because you know the companies behind them or they come from a specific country, such as Austria. These things do not automatically make a stock good. Always critically scrutinize your decisions!
If you can not think of names, start with the world’s five largest publicly traded companies: Apple, Amazon, Alphabet (Google), Facebook, Microsoft.
How to start buying penny stocks- Information
Note that the price of a stock basically says nothing about whether it is expensive or cheap. So one share can be very cheap for € 1,500 and another very expensive for another € 3.70.
Never buy a stock just by numbers. Buy the stock because you believe in the company and believe it over the long term! This also includes a background check to the management team, which is one of the most important points of all, but is often overlooked. Look at the public (social media) profiles of the CEO and other managers. What’s your impression? Does the mindset also correspond to your philosophy? You should not buy shares in a company unless you approach the management. For more information about how to start buying penny stocks, stay in connection with us.