Buying penny stocks?
Posted on Apr 22, 2011 with Comments 8
gmkday asked:
What’s wrong with this plan? You do some mild research and look into like 10-20 penny stocks and buy 25 dollars worth of each and just hold them. If three blow up to like 4 or 5 bucks a share you’d make some alright cash. Why isn’t it as easy as I think, I know it isn’t. Please put as much info as you can.
Nichol Malec
What’s wrong with this plan? You do some mild research and look into like 10-20 penny stocks and buy 25 dollars worth of each and just hold them. If three blow up to like 4 or 5 bucks a share you’d make some alright cash. Why isn’t it as easy as I think, I know it isn’t. Please put as much info as you can.
Nichol Malec
Filed Under: Investing
idk but here’s one for you… caui.ob
When it comes to penny stocks (PINKSHEETS) you should not hold for more then 1 days usually u will lose money. I suggest to read up on investord hub and see what is hot. Breakout trading is pretty good. Sorry but newbies that have two sence make money on Penny Stocks u need to research which stock is good there are a couple of them, and by the way we have made over 40,000.00 and we stareted with 500.00 okay Good Luck !!
there’s an old joke on wall st,
how do you make a small fortune on Wall st?
you start with a large one.
anyway, the skinny is penny stocks are the ones that go to zero.
most stocks are investments that never go to zero. what your planning has a simple name its called gambling. its not investing.
Test your plan out first. Write your plan down on paper.
Why you buy a stock and reasons when to sell.
Paper trade your stocks by picking the 10-20 stocks as if to buy them, then wait until your plan says when to sell. Did you make any money? Remember to charge your self the buy&sell transaction fee for each stock. Check out Yahoo Group: ComputerProgramPicks. Good Luck. Having luck is executing with a prepared mind.
In most cases “penny stocks” are priced based on value. Most of these companies have very little underlining value(assets). The lack of those assets or lack of revenue to support the company more often than not equate to performance which is often over estimated. If you only pay pennies it is usually worth what you are paying for it. Study the market, study the company do your homework and the right stock for your risk tolerance will surface. There is nothing easy or quick about stock investing.
Good Luck investing
a. Commissions
b. Much more than 4-5 will lose money or “blow up”.
Penny Stocks is the first place many “newbies” go to.
It should be their last (after 5-10 years of investing experience…. if that).
Many professional traders won’t touch stocks under $20. Most won’t touch any under $10.
You are “in concept” right about one thing……. investing is a numbers game with money management being the “key”.
Keep asking questions. Keep thinking analytically.
If you invested in WorldWaters and Solar technologies in early 2000, you could have bought the shares as low as .40 each. In june 2001, each share shot up to $937. If you took a $1000 and invested it, you would be a millionare. Pennystocks can make you a lot of money, you have to pick the right ones
First, “blow up” is a bad thing.
Second, your example show success in 15-30% of the stocks. The odds really aren’t that good.