Are penny stocks a good start for risk investing?

[Bozigian]

I am new to investing and was thinking about signing up for Scott trade but I want to not spend so much money on stocks so fast. Penny stocks sounds like a smaller version of the stock market so do any of you invest in penny stocks or do you recommend it for beginners. Would website would you advise to open an account for penny stocks?:smx4:

 

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[lightning]

Penny stocks are not "a smaller version of the stock market". They are more dangerous, volatile, and carry ALOT more risk. And no, I would not reccomend them for a beginner. If you are seriously interested in getting started in the stock market, pick up a few books, open your browser and go to your favorite internet search engine, type in "getting started in the stock market" or "stock market investing" and start READING. After a few weeks of reading and taking notes until youve learned the basics, head over to investopedia and open up a simulator account (ie an account that lets you invest/trade with FAKE money). Then you can start practicing a little to wet your feet, so that you understand how the mechanics of the market (executing trades) work.

In my experience, 99% of people who jump into penny stocks as their first venture into the stock market, do so because they like gambling or because their eyes got wide hearing about a stock that was pumped up 1000% in 2 days (the "Oh my God if I had only put my $4000 savings account into that stock I would have a fortune today!" syndrome). I regret to say that out of all of my friends who I have helped get started in the market in the past few years, MOST of them with this syndrome go broke very, very quickly. The ones who get good at playing the market and who DONT have a mentor to hold their hand early on....do what I mentioned above.

Making money your first few months/years in the stock market is nice, but the lessons you will learn early on are worth x10 any cash you might generate. Dont look to "make a quick buck", playing the pennies and hoping to get lucky right now. Learn to invest and trade the RIGHT way, so that you can make money for the next few decades doing it.

Good luck.

 

[Jonleehacker]

I am new to investing and was thinking about signing up for Scott trade but I want to not spend so much money on stocks so fast. Penny stocks sounds like a smaller version of the stock market so do any of you invest in penny stocks or do you recommend it for beginners. Would website would you advise to open an account for penny stocks?:smx4:

Do you think penny stock investing has changed much since you asked the same question a couple days ago and we all told you how bad of an idea it was?

 

[lightning]

Do you think penny stock investing has changed much since you asked the same question a couple days ago and we all told you how bad of an idea it was?

Damnit! I must have missed that gem of a thread! lol And here I go and wasting time typing a long reply because I thought the OP needed some serious advice!

 

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[Bozigian]

Jonleehacker you are wrong. This is the second post I have ever asked in this website. I registered for this website yesterday. This is the my first post besides my introduction. The is the first post of mines that has the word "penny stocks" included.

So Jonleehacker, you have me confused for somebody else.:nono:

 

[CommonCents]

Penny stocks are great for RISK investing. I usually like to pursue profit investing, and penny stocks aren't very high on that list. Alpha, is excess risk adjusted return. That's what you want to pursue.

 

[AllenMass]

I think you are taking a step to make your career successful. In Global penny stocks, you will make good stocks.

Spam link removed.

 

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[Bozigian]

Everytime I look back at my threads.
I am amazed at how much more I know now.

I know more about penny stocks and large cap stocks.
I know the different brokerages now.

Has anyone here successfully profited from penny stock investing?

 

[wallstreet]

Investing? Nope. Trading? yes very nicely. A penny stock is anything below 5.00 and I've made nice money off of 2k and less from buying them. Lowest I ever bought was a .004 one that hit .0142 in 2 weeks. That said sub-pennies always gave me the most trouble and don't seem to do so great now. I stick to the .10- 2.00 Range.

 

[Bozigian]

@Wallstreet

Do you buy penny stocks that people talk about like Tim Sykes/message boards?

Or you research on your own and then buy some?

 

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[wallstreet]

I buy my own mostly, but I also have an email account that gathers all of the letters at once and check them daily as well. Sometimes they are good picks its just that everything has to be verified. One thing to watch out for is their disclaimer and compensation. If they were compensated in shares, or the amount is very large you have to assume the company is planning on selling shares soon to make their money back.

 

[johnmartin]

Penny Stock Alerts

I am so excited to read this awesome post regarding stock market which is so informative & knowledge increasing. Thanks for this good job.

 

[MarkBrown]

penny stocks

Your post is so informative. Thanks...




[Moderator has removed link]

 

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[lightning]

Everytime I look back at my threads.
I am amazed at how much more I know now.

I know more about penny stocks and large cap stocks.
I know the different brokerages now.

Has anyone here successfully profited from penny stock investing?

Yes. Although as I have said before on here, it is just one part of my portfolio. I also invest in large caps of course. The micro's take time and can frustrate you to no end, but if youre willing to invest the time in researching them and "dig through all the crap", when you find one...it can be like finding buried treasure in a landfill.

I have made a significant amount of money investing in the pinksheets. It has become a major hobby of mine, and I love the chase of finding a good one.

 

[Kak]

By the way Scottrade commissions are higher than Zecco for no reason. I dropped Scottrade and never looked back. I expect something in return for paying more.

 

[stressfree]

It doesn't fit the Fastlane method at all. You have no control. And it's high risk. It's the same as becming a "black jack player"

Now where it can be lucrative is beijng a company you list on the penny stock board...

 

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[stressfree]

Man...stock market is where you invest your wealth not create it. I know. And it was pretty clearly laid out in his book. I agree 100%.

 

[millionairesol]

If you've got dead money or risk capital, take out a fraction of it and take quality stock trading lessons before risking any. Do not just dive in. The risk is in the trader who lacks the right education: Ineptitude is a great killer.

 

[stressfree]

Keep out of penny stocks. Keep to stocks greater than aobut $20. They trend better.

 

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[CarrieW]

this stressfree guy is totally against trading of any kind it would seem.

dude if you dont want to trade DONT. if you have nothing productive to add to a conversation why bother. noone ased if you thought it was a good idea.


you obviously have been burned by trading in the past. GET OVER IT.

if you dont want to trade then dont. stop spewing your anti trading crap on every thread you see. OBVIOUSLY there are traders here who are successful and prove everything you say wrong b4 you even bother to type it so stop wasting your time and ours PLEASE.

 

[stressfree]

You are idiot.........end of.

 

[stressfree]

if you think day trading forex is Fastlane..you are in for one hell of a shock!


I'll bet MJ agrees day traidng your own account in forex (unregulated) is NOT Fastlane.

 

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[stressfree]

so if someone with over 12 years experience come sin with a contray opinion to yours....that's it to hell with them? LOL MJ was dead right. Peoples' beliefs are a hard thing to change.

See how you sing next year about day trading forex. When your broker "freezes" your screen again or starts running prices agasnt your stop losses. You think oyu can consistently make 100percent+ per annum with low risk you are dreaming with your eyes open. Since 2007..wow all of what 3 1/2 years but you only mentioend last eyar you traded with REAL money......wow. I have been trading since early 90's. You are in for a huge popping sound soon.

Forex can be fastlane if you are the broker.....you are their meal ticket.

if you dont want to trade then dont. stop spewing your anti trading crap on every thread you see. OBVIOUSLY there are traders here who are successful and prove everything you say wrong b4 you even bother to type it so stop wasting your time and ours PLEASE.

 

[CarrieW]

douchey is as douchey does.

 

[Battleship]

I am thinking about investing into watches. There are several watch brands (like e.g. S**tch) that seem to have a stable development. What do you think about it?

 

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[CarrieW]

well battle that totally depends on who you want to answer your question lmao.

me Id say if you have done youe due dillagence and you think its a good investment then I would say put some money in and see how you do.

I will let others answer for themselves lol but I can guess what will be said lmao.

 

[Battleship]

I am thinking about investing into watches. There are several watch brands (like e.g. S**tch) that seem to have a stable development. What do you think about it?

I will let others answer for themselves lol but I can guess what will be said lmao.

... but apparently no one wants to answer anymore... Maybe I should start with a little investment and see how it goes before investing more money...

 

[CarrieW]

yeah that sounds like a good idea. and about the same thing I am doing with forex. no matter how much you think you know things change when you got some skin in the game. Its easy to say you know what your doing and another thing to actually go out and actually do it.

I wouldnt be surprised if people post now that its back up towards the top of the posts. sometimes things get burried here and then go left unnoticed. not that people dont want to help they just havent seen it!

keep me posted on whats going on! and best of luck!

 

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[Battleship]

Thanks! I'll keep you posted

 

[kbsktbll88]

Pros and Cons to penny stocks

For the thread starter Bozigian, when you say penny stocks are you referring to OTC:BB and Pink Sheet stocks .. i.e. Micro Caps?

If so, here's my opinion about those. They can be very lucrative IF you know how to trade them. I started out about 2 years ago trading penny stocks (OTC/Pinks) and did ok in them. I was completely new to investing, had some good ones..had some bad ones. Since then I've gotten pretty good at nailing breakouts.

Now I'm a full time trader in mainly options now because of the liquidity. Here are the pros and cons to penny stocks:

PROS:
- Very large % gains
- Predictable once you start learning patterns
- Fast money

CONS
- Risky because 99% of micro cap stocks are BS companies
- Not that liquid so you can't invest too much in them

The thing about penny stocks is that they're manipulated. I actually do limited IR work for penny stocks that I actually like. I know how they operate, I run a few sites which I won't post links to as I'm new and I'll be banned lol

But anyway, because of the manipulation in the penny world they are also ways to benefit from them. And by that I mean get in before the "pump & dump".

The one thing I can recommend you do is to learn TA (Technical Analysis)!!!

Forget fundamentals with penny stocks. They don't exist..throw them out of the window! Fundamentals are good for small/mid/large/mega cap stocks. But not micros!

Good luck! Let us know your progress.