Investing in Penny Shares

[rayudu]

Hi All,

I have tried twice before and failed miserably in penny shares. I am trying for the third time, and this time doing it in a smarter way.

These sources provide monthly picks and have pretty good records:

falconstocks.com
societecaribe.com
rollercoasterstocks.com

I have joined the first 2 but have yet to join the last pick service. You have to pay a membership fee to get access to the information.:smxF:

 

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[GlobalWealth]

Penny shares are a good way to boost returns, but you just need to keep postion size in mind. You are absolutely crazy to invest your whole portfolio in penny stocks (not saying you are, just my opinion). As Cramer says, penny stocks are a good way to speculate and keep you interested in the market. But this does not need to be your investment strategy. You shouldn't put more than 1-2% of your money in these types of stocks. Most penny stocks are that for a reason. They are worthless. But there are some good buys that can be great for growth. But if you only invest in penny stocks, you will get wiped out. No question.

 

[tchandy]

I would agree with GlobalWealth. Also, I wouldn't pay for a service on penny stocks especially since you have two sites to get notices on. Plus you have the internet to do your own research on the stock/company.

Tom

 

[rayudu]

These two sites have a good record at picking- saves me alot of time and work. Just go thru their picks, see which ones I like, and invest. Yes, I do look at daily and avg volume and invest what I can comfortably get in and out with.

 

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[BurnBright]

Rayudu make sure you read the disclaimers on the sites you use for recommendations. Many ( and by many I mean most) of penny stock investing sites and newsletters are paid by the companies to promote their stocks. Like others have said these stocks are priced low for a reason. I would stick to young companies that have floats under the 100 million share mark. Also look for value plays that have an up coming event that could be big news for the companies future. For example an exploration company trading for less then book value and with a good amount of cash on hand that will have drill results from their main claim.

 

[Walley]

These two sites have a good record at picking- saves me alot of time and work. Just go thru their picks, see which ones I like, and invest. Yes, I do look at daily and avg volume and invest what I can comfortably get in and out with.

If you want to save time try IBD.

 

[Reefbreak]

I do not spend time with Penny Stocks, but I found the following as I was going through Mebane Faber's blog today:

We screened for stocks trading below $1 on the New York and American stock exchanges. It returned about 300 stocks from a list of 2500, and we then sorted the stocks by # of INSIDERS buys. Since then the list had an average performance of 244% vs. around 55% for the microcap index. The list of names is below, and there was only one loser of -10%, and multiple 500% plus gains…

If interested, a quick search and you can find the rest of the information.

 

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[GlobalWealth]

use a stock screener like on yahoo finance. you can filter down to the investments you are looking for. most trading platforms also offer a stock screener.

 

[mathewhidden]

Investing in Penny Shares is a good thing. But the thing is that before one invest has to know all the things about stock market. Penny stocks is one of the investments, which provides you all type of facilities in term of investment.

_______________________

www.iamanewbiethatdoesnotreadandfollowforumrules.com or
www.iamaspammerandilovetogetbanned.com

 

[EastWind]

penny stocks are stupid. anyone on this site who is serious about fastlane, should NEVER ever invest in penny stocks. not even a nickel. if you think otherwise, please name 5 people who have made millions via penny stocks without fraud.

 

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[BurnBright]

penny stocks are stupid. anyone on this site who is serious about fastlane, should NEVER ever invest in penny stocks. not even a nickel. if you think otherwise, please name 5 people who have made millions via penny stocks without fraud.

I know several people but all have been on the operating side of things(brought the company to market). These were resource/junior exploration plays mostly. Saying penny stocks are stupid is very closed minded however it is a very risky area to invest in and the ones who make millions are a small percentage of the one who lose. Most OTC stocks are long shots or scams in general and I would avoid them with the exception of ADR's trading OTC.

Penny stock is a very lose term anyway some people regard anything trading under $5 a penny stock, some under $1. But I think the better way to look at it is by market cap. Micro cap stocks under $250 million is a better area for profit.

 

[maximus20895]

^i'm confused how penny stocks are not fastlane. Yes, penny stocks are not a guaruntee of increased income, but you often see a far better return on the higher performing ones vs the traditional stock market high returns.

I've seen some penny stocks go up 1800% ,3200% and even 4600%. Yes, this is rare, but it's also much rarer in the traditional stock market. There are many, many millionaires who made their money using penny stocks.

I wouldn't mind multiplying my portfolio 46 times.

 

[EastWind]

I know several people but all have been on the operating side of things(brought the company to market). These were resource/junior exploration plays mostly. Saying penny stocks are stupid is very closed minded however it is a very risky area to invest in and the ones who make millions are a small percentage of the one who lose. Most OTC stocks are long shots or scams in general and I would avoid them with the exception of ADR's trading OTC.

Penny stock is a very lose term anyway some people regard anything trading under $5 a penny stock, some under $1. But I think the better way to look at it is by market cap. Micro cap stocks under $250 million is a better area for profit.

Call me closed minded if you will, but I stand by my statements. Penny stocks are stupid and if you want to take such risks, go play poker or blackjack. Winning the lottery is fastlane, but trying to get wealth by playing the lottery is stupid. in US, penny stocks are stocks trading for less than $5 period. They are easily manipulated and it is hard finding solid info on most companies. Go look at wallstreet financial gurus, they don't trade penny stocks for a reason. If you want to succeed in life, EMULATE/IMITATE the very successful.

 

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[EastWind]

^i'm confused how penny stocks are not fastlane. Yes, penny stocks are not a guaruntee of increased income, but you often see a far better return on the higher performing ones vs the traditional stock market high returns.

I've seen some penny stocks go up 1800% ,3200% and even 4600%. Yes, this is rare, but it's also much rarer in the traditional stock market. There are many, many millionaires who made their money using penny stocks.

I wouldn't mind multiplying my portfolio 46 times.

Seeing penny stocks go up 4600% means nothing, because I have seen an investment go up 10000%, a $1 lottery ticket can win you a $100million. So what's your point? Can you consistently buy into a penny stock that will go up 1800%? If not, it's stupid. This forum is about making smart decisions towards your achievement of wealth, not being blind and stupid and all emotionally about it.

You guys are too focused on trying to get rich FAST, and those that wish to get rich fast usually end up broke faster!

FASTLANE 101. Start a business with VALUE! Give VALUES to others and they shall gladly give their money to you in exchange for your values. Do it right and millions shall be yours. That simple.

 

[PaulRobert]

Winning the lottery is fastlane, but trying to get wealth by playing the lottery is stupid.

:bgh:

No, winning the lotto is luck, luck, luck. There is no work involved, just you buying a ticket. Winning the lottery is just fast cash, not fastlane.

The lottery is only fastlane for the government. They get people to pay for a ticket that gives the buyer temporary, false hope while they still collect.


fftopic:

 

[maximus20895]

Seeing penny stocks go up 4600% means nothing, because I have seen an investment go up 10000%, a $1 lottery ticket can win you a $100million. So what's your point? Can you consistently buy into a penny stock that will go up 1800%? If not, it's stupid. This forum is about making smart decisions towards your achievement of wealth, not being blind and stupid and all emotionally about it.

You guys are too focused on trying to get rich FAST, and those that wish to get rich fast usually end up broke faster!

FASTLANE 101. Start a business with VALUE! Give VALUES to others and they shall gladly give their money to you in exchange for your values. Do it right and millions shall be yours. That simple.

I literally said that a stock going up 1800% is rare, so i'm not sure why you are attacking me of saying other wise. All i was saying is that penny stocks, when they are good, generally raise a higher percentage than a traditional stock ($5 or more)

I am also pretty sure penny stocks are a better investment than a lottery ticket. You can tell trends in a market, you can't tell the machine to pick your number.

If you are playing a numbers game then it's stupid do even look at the failures. Part of the fastlane is to overcome them. You are saysing that since your odds are slim you shouldn't even consider it. I'm pretty sure that most business started fail so upcoming business are taking a chance against the odds as well.

I never once said that penny stocks should be the highway on the fastlane, I just said that it could be a sideroad.

 

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[mkzhang]

I know several people but all have been on the operating side of things(brought the company to market). These were resource/junior exploration plays mostly. Saying penny stocks are stupid is very closed minded however it is a very risky area to invest in and the ones who make millions are a small percentage of the one who lose. Most OTC stocks are long shots or scams in general and I would avoid them with the exception of ADR's trading OTC.

Penny stock is a very lose term anyway some people regard anything trading under $5 a penny stock, some under $1. But I think the better way to look at it is by market cap. Micro cap stocks under $250 million is a better area for profit.

Listen to him and you will make a million bucks

The key is to figure out which Penny stock will become ADR on OTCBB, once the "shell" is acquired and starts trading again, you will make at a minimum of 100% return.

Those who craps on penny stock are just ignorant at best. The only reason most people get ripped by penny stocks is because they are greedy and does not conduct their due diligence. The due diligence are pretty hard to do tho I will give you that lol.

Oh yeah, almost forgot, even if you did succeed in your due diligence, there is a chance that the acquirer of the shell will clean out "get rich scheme" guys like you by merging 10k shares into 1 shares, effectively eliminating you.

Its hard, but its not impossible, and it certainly does not depend on luck.

I think too many people on here are mistaking fast lane with easy money. Any money is hard to make, fast lane just means you do it in the field that actually has the money, vs working your butt off for bread crumbs

 

[max momo]

In the past 10 years I've generally ONLY invested in penny stocks. You need to learn position and money management. Plan to lose 60-70 percent of the time.


Others focused on 'sure things' like mutual funds. Or, stocks like BAC, C, FNM, FRE, F, GM, LU, etc. Which are now penny stocks.

Risk and reward. Everthing else lies within those lines...

 

[DeletedUser394]

I too am just starting out in penny stocks

Check out Short Selling Penny Stocks.

Tim is the #1 trader out of 50,000 at covestor.

You can even view all of his verified trades TIM – Transparent Investment Management

 

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[Bozigian]

If one was to invest in penny stocks, what website would be recommended to open an account in?

I want to read books on penny stocks then I will see whether it is a scam for myself.:coco:

 

[DeletedUser394]

Penny stocks are not a scam. Most are legitimate start-up companies.
Pump and Dump strategy is illegal.
It's a very speculative market, but not an illegal one.

https://www.thinkorswim.com

"OTCBB (Pink Sheets)
$9.99 for any stock trade regardless of size or order type for stocks $2.00 or less."

 

[Flatlander]

Wouldn't you be better off to be the company issuing the stock rather than some guy trying to speculate on it?

 

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[DeletedUser394]

Wouldn't you be better off to be the company issuing the stock rather than some guy trying to speculate on it?

For me personally, not a chance.

I don't want to be burdened with day to day tasks of running a company (I'm not an entrepreneur). I'd rather be in and out of a position within a day... even within five minutes.

I'm also attracted by the associated risk. I just love everything about trading.

 

[Bozigian]

Ryan I am confused. At websites like ameritrade and thinkorswim. How does someone find penny stocks and not regular stocks?

 

[DeletedUser394]

OTC Bulletin Board - Wikipedia, the free encyclopedia

"The OTC Bulletin Board or OTCBB is an interdealer electronic quotation system in the United States that displays real-time quotes, last-sale prices, and volume information for many over-the-counter (OTC) equity securities that are not listed on the NASDAQ stock exchange or a national securities exchange. Broker-dealers who subscribe to the system can use the OTCBB to look up prices or enter quotes for OTC securities. According to the SEC, "fraudsters often claim or imply that an OTCBB company is a Nasdaq company to mislead investors into thinking that the company is bigger than it is."

It works just like 'regular' stocks.

 

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[lightning]

There is alot I can say in this thread, and some of these replies are downright close-minded and foolish. But let me say this, I have been actively investing and trading in the stock market for years now, and have plenty of experience regarding microcaps. Anyone who is quick to say how "foolish" it is or how "stupid" it is to invest in them dosent know what they are talking about, OR, has been burned one too many times and is now biased towards them, plain and simple. My portfolio at any given time includes a MIX of both blue chip companies (my investments), and microcaps, almost ALL of which are traded on fundamentals as short-term investments. Without dropping numbers, lets just say I have built a very respectable account balance using them. If you know what you are doing and play the game correctly, there is ABSOLUTELY a way to make big money trading them, and it does NOT revolve around a guessing game. While most of my friends watch TV at night or play XBox, I am usually up till 1AM researching my picks for the next few days in the market, usually in front of my computer with a calculator and a stack of notes by my side (and this same RESEARCH is done whether the stock I am considering buying is 1/20th of a penny on the OTCBB, or over $330 per share like Apple (AAPL) on the NYSE. While my friends spend their money going to Atlantic City once a month to blow money at a craps table, I am putting any extra money I make aside to deposit into one of my brokerage accounts. I also work full-time in an office from 8-5 to pay my mortgage for the time being, so needless to say, I dont have the social life that some of my other 25-30 year old friends have. However, I am working on a different plan than them, and it does NOT involve cashing in my 401k in 40 years and retiring at 62 years old when Im considered a "senior" citizen.

Now, let me be clear about something:

Am I hoping that penny stocks will turn me into a fastlaner? NO.

Am I arguing that investing in penny stocks is fastlane? ABSOLUTELY No.

Am I arguing that anyone here should plan on using the stock market as your vehicle to escape the rat race? ABSOLUTELY NO x10!!! In fact MJ touches on that in his book for those of you that read it. The market should be used as a vehicle to INVEST your fastlane earnings. NOT as the vehicle for you to MAKE them (although thats not to say you CANT make fastlane money investing in the market, but that the majority of people who intend to do so end up greatly dissapointed).

But, if like me, you are trading (or LEARNING to trade) to supplement your income and build a very positive net-worth (possibly to give yourself seed money FOR any number of fastlane ventures while you execute other parts of your plan), then it is a shame for you to overlook them. The market is a dangerous world though matter which exchange you invest on (and as many found out the hard way in 2008/2009, is an easy way to lose your shirt if youre not careful). Did anyone else here invest in LVS when it was trading for just under $2.00 a share (worth around $45.00 today). How about Ford when it was trading for just over $1.00 a share (worth almost $20.00 today)? Newsflash for ya, by definition, those were considered PENNY stocks at one time.

Anyways, as someone who is fascinated by the market in general, and who sincerely LOVES to trade and invest in all different securities, it always pushes my buttons when people are quick to say, "Penny stocks are nothing more than lottery tickets", because lotteries are something you have NO control over. The results are purely up to chance, and nothing you can do beforehand in preparation can tip the scales in your favor. When it comes to investing in the market, EVERYONE has the same odds to make money. Its just up to you how much work you want to put in it to do so.

Good luck to all.

 

[Bozigian]

Does it really matter what source you use when looking at stocks? Like using marketwatch or yahoo finance

 

[Guest3722A]

Here's a couple to check out.

This first one might make a good short
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Maybe get .30 or .40 off of it?


Here's one below .05 where the volume is really building:

one with low volume...be careful with anything low volume if you trade size.

here's another low volume one where the volume is building

here's one that just ipo'ed.. may make a good short?

here's one less than a penny with volume building

another one building volume

this one has some nice little bumps going on

 

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[DeletedUser394]

Am I arguing that anyone here should plan on using the stock market as your vehicle to escape the rat race? ABSOLUTELY NO x10!!! In fact MJ touches on that in his book for those of you that read it. The market should be used as a vehicle to INVEST your fastlane earnings. NOT as the vehicle for you to MAKE them (although thats not to say you CANT make fastlane money investing in the market, but that the majority of people who intend to do so end up greatly dissapointed).

Thank you for bringing sense to this thread!

However I have to disagree with the above statement.

I do not have an entrepreneurial premise, but like you I love trading/investing in the markets (I'd call it an obsession).

My chosen path is Junior Analyst > Senior Analyst > Hedge Fund Manager. (I'd rather just skip the first two and start my own fund, but hey, what can' ya' do.)

My overall return investing (not trading) various securities is around 300% over the last four years.

Entrepreneurship doesn't excite me, and people are so predictable it's disgusting (which is why investing is so much fun). The majority of investors are stupid, plain and simple.

I view it as a war. Constantly having to stay on top of the latest worldwide news developments, being able to leverage obscene amounts of money, etc.

I have some friends who make a lot more money by shorting penny stocks rather than holding long positions.

Of course most traders fail, but if you set realistic goals, have some kind of risk management strategy, and work your a$$ off, the odds are suddenly in your favour.

I spend 2-3 hrs/day staying up to date on the latest news stories, and spend another hour studying math (lol). Working towards a BComm in Finance, and then a CFA designation and all that other wonderful non-sense.

Only started trading recently, been investing through a custodial account since I was 14.

 

[PaulRobert]

Penny shares were one of my first investments back when I was in 8th grade. I actually made a minuscule profit the very first day. Back then though I was just starting out, naive, and full of inexperience. I do not regret anything I did, and I learned a vast amount about the market playing with stocks.

If I began investing in stocks right now, my strategy would be completely different. It would definitely be more analytical and complex, instead of just assuming that it's a good and stable company. Reading Bloomberg everyday greatly expands your knowledge on the situation of the macro and micro part of the economy. IMO reading and actually investing will expand your knowledge as an investor. Even though money is at stake, a motto that I live by is "Money can be replaced, time and lessons learned cannot."

Investing in the market is certainly part of my plan in the future. I will use the market to accelerate my Fastlane speed, not start it.