Do not be fooled by the name “penny stocks” as there is much more risk involved trading these types of stocks, compared to normal stocks you would find on big exchanges like the NASDAQ and NYSE. That is why we have compiled a list of our 5 best penny stock trading courses to better prepare you before you begin trading.
Penny stocks are stocks of smaller companies that usually trade for under $5. Because of the low share price, investors are often inclined to purchase larger sums of shares in hopes of even a little price volatility, which at a large scale will result in a large profit.
With this type of investment, comes a great deal of risk too. That is why it is imperative to your success as a penny stock investor to do your due diligence of research and educate yourself to ensure your executions are on point.
Quicklook: Best Penny Stock Trading Courses
- Udemy: The Ultimate Penny Stocks Day Trading Masterclass — Best for Beginners
- Udemy: Start Day Trading Penny Stocks in 60 Minutes — Best for Those Who Want to Learn Quickly
- Bullish Bears — Best Free Option
- Udemy: Get Started With Penny Stocks — Best for Learning Strategies
- The Complete Penny Stock Course: Learn How to Generate Profits Consistently by Trading Penny Stocks — Best for an All-In-One Resource
Table of Contents:
- Best Penny Stock Trading Course Options
- What Is Penny Stock Trading?
- How Do Penny Stocks Work?
- What to Consider With Penny Stock Trading Courses
- Are Trading Penny Stocks Worth It?
- Frequently Asked Questions
5 Best Penny Stock Trading Course Options
Here are our 5 best penny stock trading courses and a breakdown of their best features, advantages, disadvantages, pricing, and more!
Udemy: The Ultimate Penny Stocks Day Trading Masterclass
This course by Udemy is led by Travis Rose, a full time small cap day trader/investor of 5+ years. Starting with the bare bones of trading penny stocks, Rose will guide you through the basics that anyone who is interested in trading penny stocks, should know.
This option is great for beginners and will surely provide you a solid foundation of knowledge on trading penny stocks.
Instructor: Travis Rose is a full time day trader/investor of over 5 years. He is a self-taught investor and says his goal is to provide students with insights on how to avoid some commonly made mistakes many beginner investors make.
Duration: 2.5 hours on pre-recorded videos
What You’ll Learn: All of the foundational basics of trading penny stocks from opening a trading account to technical and fundamental analysis.
- Downloadable ebook with trading strategies and additional information
- 10 multiple choice quizzes to test your knowledge
- Lifetime access to course content
- Learning from someone who has been in your position before can be insightful and less intimidating
- The course is short but dense in knowledge
- Reviews claim this course is easy to follow and formatted well
- Creates a solid foundational understanding of penny stocks to build your investor knowledge on
- Some students will not find this course challenging enough, it is definitely geared towards beginners
- Some topics will not be covered as in depth as others throughout this course
Pricing: This course is typically $99.99 but is currently on sale for $15.99!
Udemy: Start Day Trading Penny Stocks in 60 Minutes
This course is a great option for beginners who want to advance their skills and knowledge quickly. While the course is short, it is organized and condensed down to present you just the most important information you should know as a penny stock trader.
Instructor: Yossof Sharifi is an entrepreneur (who has created over 50 companies), stock and options trader, previously a trial attorney and business law professor, bestselling author, and marketing consultant.
Through all of his endeavours he has managed to retire before 40 and now is the CEO and founder of the Money Learning Academy which focuses on helping people reach financial freedom through trading.
Duration: 2 hours of on demand video
What You’ll Learn:
- The top 4 chart patterns to follow when trading penny stocks
- Maximizing risk and profits
- Basic fundamentals of penny stocks and trading psychology
- For a shorter course, a lot of information is covered
- While a lot of information is being presented to you, it is well organized and concise
- This is one of the more affordable course options
- This course is a great introduction for those new to penny stocks
- Short and to the point
- The instructor is said to be engaging and easy to follow along with
- Stock trading simulations
- Some explanations may not go as in depth as you need
- The course is short, so additional courses may be necessary for a more complete understanding of penny stock trading
Bullish Bears: Penny Stock Trading Strategies Course
The Bullish Bears penny stocks course is an excellent option for those on a budget. With a plethora of free course options tailored towards investors, their penny stock trading course is worth taking a look at.
Besides just this course, Bullish Bear’s website offers other investor resources like watch lists, alerts, and helpful articles centered around investing.
Instructor: The website and content is run by the three co-founders, Tim Davis, Daniel Adams, and Lucien Bechard. Collectively, the founders are passionate investors with different backgrounds in business, accounting, and marketing.
Together they have compiled an excellent resource of educational content and tools for investors looking to expand their knowledge.
Duration: This course is completed at your own pace.
What You’ll Learn: This course covers everything you need to know about trading penny stocks from scanning to charting to technical analysis and more!
- Membership gives you access to live trading rooms with daily streaming and chats
- Real-time mentorship opportunities
- Live webinars twice a day
- This is the most interactive course on our list
- One on one instruction and mentorship is a unique feature of this course
- Membership gives you access to not just the course but to the plethora of resources available on this site
- There is a mass amount of content available on this site and can be hard to navigate at times
- Overall the organization of this site isn’t the best however it is manageable and worth your while
Pricing: You can start a trial for free but after 7 days, your membership will cost $49 a month for full access to the entire website.
Udemy: Get Started With Penny Stocks – Step by Step Guide to Trading July 2021
This option is great for those who already have a basic understanding of trading penny stocks and want to advance their skills with different strategies. The course focuses on making a consistent profit and building a profitable trading system that works for you.
Consider taking this course to gain knowledge on different penny stock trading strategies as well as learn some original ideas from the instructor that will help you better understand how the market works.
Instructor: Mubarak Shah is a certified public accountant and the founder of InPennyStock and ICO (Initial Coin Offering). InPennyStock and ICO are rapidly growing education sites for trading stocks and learning investor strategies.
Duration: 3 hours of on demand videos
What You’ll Learn: In this course you will learn how to take your penny stock trades to the next level through strategies and learning how to implement them through creating your own watchlists and stock screeners.
- Although this is an asynchronous course, the instructor is still available to answer your questions
- The course is constantly being updated to ensure that you are on the forefront of investor strategies
- Get lifetime access to course content when you sign up
- Learn the most up to date investment strategies for penny stocks
- Strategize how to set yourself up for long term wealth
- Learn from a certified professional
- This course is not for beginners
- You will need an active brokerage account that’s able to execute trades
Pricing: The course costs $89.99 typically, but is on sale right now for $11.99
The Complete Penny Stock Course: Learn How to Generate Profits Consistently by Trading Penny Stocks by Jamil Ben Alluh, Lisa VanDyke Brown, and Timothy Sykes
This option is a book that we feel sufficiently covers enough material to be comparable to these other courses. If you are a busy individual or don’t take well to online learning, this may be a good fit for you. Throughout reading this book you will be introduced to concepts about markets and the psychology of trading.
The book also covers the basics of day trading and will lead you into more advanced penny stock trading techniques. Ultimately, the goal of this book is to teach you how to make consistent profits through trading penny stocks.
Instructor: Jamil Ben Alluch is an author, entrepreneur, engineer, trader and investor. Timothy Sykes, who wrote the forward and who’s strategies are covered in this book, is a respected penny stock trader and entrepreneur.
His technique and strategies are well accredited in the investor world and he is best known for turning $12k in Bar Mitzvah gift money into $1.65 million throughout studying in college.
Duration: This book is 386 pages long
What You’ll Learn:
- Basic concepts on the penny stock market
- The psychology behind trading
- Day trading basics
- The mechanics of penny stocks
- How to manage risk
- Strategies and techniques to help make you a consistent profit
- How to develop your own trading techniques
- Reviews rave about how complete and well organized of a manual this book is for penny stock traders
- Learn how to adapt Tim Sykes profit making strategies
- An easy read that makes challenging topics more understandable
- You will be learning the strategy of one of the top penny stock traders
- Because this is a book you can simply pick it up or put it down whenever is best for you, and access it no matter where you are or what circumstances you are in
- Covers both the fundamental basics as well as delves into more advanced topics
- There is no interaction between the “instructor” and the student
- Some may not find this type of learning to be engaging enough
Pricing: On Amazon, this book retails for $19.78.
What Is Penny Stock Trading?
Penny stock trading is the act of buying and selling shares of microcap or small cap stocks with share prices below $5. Typically, they are traded on the over the counter market as opposed to bigger stock exchanges like the NYSE.
This is due to their smaller market caps and because most of the time these stocks don’t meet the requirements set by these larger exchanges. However this isn’t always the case and there are penny stocks you can find on larger exchanges known as tier 1 penny stocks.
How Do Penny Stocks Work?
Penny stocks are high risk investments that you buy and sell to make a profit, just like any other stock. The main difference between trading typical stocks and penny stocks is that due to their low share price, investors will often buy larger quantities of a penny stock they believe will be successful in order to make a larger profit.
Also, because these shares are coming from smaller cap companies there is a lower volume of stocks available and they trade less frequently. This makes penny stocks more vulnerable to high price swings and low liquidity.
What to Consider With Penny Stock Trading Courses
Before deciding which course is best for you, take these variables into account and ensure the course you are signing up for will be well worth your investment.
Most importantly, you want to make sure the course you are signing up for is through an accredited program or taught by an accredited instructor. This will ensure that you aren’t being led in the wrong direction or being fed false information.
Especially with the high stakes involved with trading penny stocks, you want to make sure you are learning from experts.
Provides a Fundamental Foundation
Without a foundational understanding of trading penny stocks, there isn’t much room to improve yourself as a trader. Make sure that before diving into more advanced courses, you are confident in your knowledge of the basics.
If you aren’t confident, consider starting with one of our more beginner level recommended courses!
Helps You Navigate Investor Resources
A large part of trading penny stocks is being able to read charts and analyze data to forecast stock prices. A good penny stock trading course will help you navigate through data and different investor resources to properly strategize yourself.
Are Trading Penny Stocks Worth It?
Trading penny stocks can be a full time job and definitely takes dedication to learning strategies and educating yourself. But with the right guidance, successfully trading penny stocks is not impossible.
If you want to learn more about trading these stocks and don’t know where to start, begin by taking one of the more basic penny stock courses listed above. Also if you are weary on whether or not trading penny stocks is the right choice for you, contact your financial advisor for further guidance.
Frequently Asked Questions
Yes it is very possible to get rich off of trading penny stocks however with the chance of large profits also comes a large amount of risk involved.
Penny stocks are those with a share price under $5, so yes you can invest in penny stocks with $100.
Yes penny stocks are hard to trade due to the lack of information available on these companies. They are also extremely volatile and lack historical data as most penny stocks come from smaller companies that are less established and therefore “younger”.
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