Penny Stocks

Discussion in 'Stock Market Education' started by Beautyspin, Jan 9, 2015.

  1. Beautyspin

    Beautyspin Member

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    This has probably been asked many times in many forums and possibly the most asked question everywhere but I am still going to ask this -

    Any recommendations for penny stocks and one reason why you are recommending it?

    Thanks
     
  2. crimsonghost747

    crimsonghost747 Senior Investor

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    You're right, it's been asked a million times. Half of the threads here are about penny stocks, if you read through half of them you will notice that we always recommend to stay away from them. There is nothing wrong with asking questions, that is what this forum is for. But when that question has been answered around 5 times in the past week... the answer really won't change much.
     
  3. Beautyspin

    Beautyspin Member

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    Well, the answers change with time, right. So I was checking to see if there are any changes in the Penny stock recommendations. I am an Indian and would like to start investing in the US directly and so testing the waters so I want to start small just to make sure the kinks are ironed out so I am not looking to make millions in a short time. It is just a way playing a demo game with real stocks without getting hurt much. My logic may be flawed, but I can't lose much if I have a limit in mind and do not cross it. And I am willing to write off that amount as a fee for the education that I going to get. Hope the explanation helps. This is how I learnt investing in Indian stocks where market analysis is defied by market sentiment and price fixing etc., so your normal tutorials do not work. You have to get in get dirty..
     
  4. crimsonghost747

    crimsonghost747 Senior Investor

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    Your strategy itself doesn't sound too bad. But I Still don't see why you would start with penny stocks. Most large caps are trading in the price range where you can get multiple shares with a ccouple hundred usd. Amounts lower than this do not make sense with any type of stocks due to commissions.

    I would recommend starting with something a bit more safe and with more liquidity.
     
  5. JR Ewing

    JR Ewing Super Moderator Staff Member

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    Yeah, I'd avoid penny stocks. Chances are great that you'll lose whatever you put into them.

    Check out the penny stock forum. I'd read every thread in that section carefully before you consider buying any low priced stocks.

    Even if you've only got a couple hundred bucks to start, I'd stick to buying a share or two of several companies with solid fundamentals that are at least trading in double digits ($10 or more per share).

    If none of that makes sense to you, buy shares of an index fund.
     
  6. troutski

    troutski Guest

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    I wish people would stop asking about them, in fact. That's how much these questions have been asked. I've been looking at American Apparel's paltry stock price for months, and that company looks like it's doomed. Sprint's stock has been around four bucks for awhile, and I think they're doomed compared to the other telecom companies. Penny stocks are just best avoided.
     
  7. Trephie

    Trephie Member

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    I support this. Double digit stocks are always the best bet. Great for long term. You can always safely invest more as time goes on. It's fine to only buy a couple shares of stock at a time and see where it goes.
     
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  8. Profit5500

    Profit5500 Senior Investor

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    Yeah, the answer would never change. I say just avoid them unless you got an incredible amount of luck. If you use the pennystocks then just be careful.
     
  9. MillionsMercury

    MillionsMercury Member

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    Chances are pretty high that you'll lose money with penny stocks. That's why almost everyone I've talked to says don't waste your time with penny stocks. I know what you're thinking though. At first I thought it might be a good idea to start with penny stocks because of the price but do a little more reading on them and you'll see why no one recommends them.
     
  10. teastocks

    teastocks Well-Known Member

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    Listen to this guy I will tell you that he will not give you information that you cannot trust. The truth is most of what I have read on these forums have suggested that you stay away from penny stocks because if you do not know what you are doing you can really lose a lot of money and I have had lots of people tell me that most of them are just scams anyway.
     

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