Post them here please. It's hard to find good investments out of all the bad stuff that's out there, so it'd be nice if we had a thread where people posted tips for penny stocks. It's in your interest to promote the stocks you buy as the increased demand might cause their price to go up. Thanks.
Yeah that is really the problem with penny stocks and if you take a look through some of the threads on this site you would see that there are many people that will tell you that there are a lot of better things that you can do with your money because most of the people who invest in penny stocks lose a lot more money then they ever make.
Seriously guys, what on earth is the obsession with penny stocks?! I really don't get it, do you guys really read the newspapers and see an article about one guy who got lucky and became a millionnaire and suddenly you want to do it too? Surprise surprise, it really isn't that simple. Just go and bet all your money on the SuperBowl next weekend, higher chances of winning than with penny stocks and you still get the thrill of "win big or lose everything."
The stock market is pretty fair.. Insiders and Wall Street people have a slight advantage, but with research and some specific knowledge about a stock, you can easily beat the experts. Penny stocks are for chumps. If you are not an insider, you have almost no chance of making money.. you are going to be the ones the insiders make money off of. It is like playing poker against someone who can see your cards.
The obsession is three fold.. first ´penny stock´ is a term that people who know nothing about investing have heard before. The second is the misconception that they are cheap. You are still going to have to invest at least a few thousand dollars with each purchse to overcome the cost of the trade.. it doesn´t matter if you get 10 shares for $1000 or 5000 shares for $1000... if you aren´t spending $1000, your profits are just going to be destroyed by trading costs. Finally, the whole ´ it only has to go up 5 cents for me to double my money.... I see people post that crap all the time... and never mention.. it only has to go down 3 cents for you to lose more than half your money. Mostly it is just #1, people who have never invested have heard the term, so like to throw it around.
I would look at penny stocks the way you would for a night at the casino or a round of golf or something. You have to ask yourself, how much can you afford to lose rather than how much you *might* gain. In other words, if you feel comfortable dropping a couple hundred at the casino, then you should probably feel comfortable dropping that same 200 into a researched penny stock. If your budget is so tight you cringe at the thought of losing 200 bucks, then that is too much to spend on the penny stock you might be looking at.
I agree and disagree with some things posted in this thread. Some people wonder why anyone could get excited about a penny stock. Why would they want to toss away hard earned money? In March of '86, Microsoft was said to have been at $0.09 cents. In November of '99 it was $58.38. Lets talk foolish for a minute. If someone was to by $1000 worth at $0.09 they would just over 11000 shares. IF they held and sold them in November of '99 they would have had almost $650000. Who doesn't want to get rich? The thing is, $1000 is a lot for people today to drop on stock about something that people really know nothing about. Just think of how it would have been in '86. It is a big gamble. Could you handle the $4 drop in mid '98? What about the $6 drop in early '99? It went up $7 which would have had to doing flips the next month. But then it dropped $4 again. That $4 drop is $44000. If that was your only investment, do you feel you could have stayed strong with a loss that might have been a years pay or more for many? When do you decide to get off that train? When do you say, I'm being too greedy? If you hit that peak and decided to hold till you hit your million or more then you would have lost. In the next 2 months it dropped $10. $110000+ with the amount of stock you had. Now what? Do you panic and sell before it hits rock bottom or do you cover your eyes and see where the roller coaster goes? If you didn't bail you would have jumped $9 the next month. Looks like things are turning around. Or not. Over the next two months it takes big drops and decent climbs to end up $23 lower. So a $253000 loss in 2 months. What does that tell me? Some penny stocks and make big money. And Big stocks and loss you a ton of money as well. The difference is, some big stocks can recover. A Penny stock can hurt you in many ways. You can get caught in a pump and dump. If you don't get out in time you could be stuck. You have to have someone buying to sell. The company can sell more shares which dilutes yours. You could go from owning 1% one day to .1% the next. The company can go under. You would have to be pretty crazy to leave any good amount of money in a penny stock for 13+ years. Most penny stocks are sold that day or within a few days. If you are making too many trades then you might have to worry about the day trading rules. I have bought penny stocks myself. I was doing a lot of reading on a stock forum. This would have been about 5 or 6 years ago. I read long threads about stocks. Read about them climbing and dropping. When people were getting back in and so on. It gets exciting. Then I started reading about some stocks that were doing well and I missed the boat. I wanted in. I was reading about some so I tried to get an account set up quick. I also told by brother in law. It took longer then I wanted to get my account set up so the stock I wanted did already start to climb a couple days before. I jumped in at watched my stock climb immediately. My business partner (we had a detail shop) was up in the office. I would send him messages. I'm up 10% and before I sent it I was up 15%. I would send it off then start writing that I was up 25%. It was unreal. Now here is the problem. I didn't want to go crazy so I didn't put in as much as I could have. Because of that It had to climb higher to cover my trading cost. Mine were higher then others but that is what I had. I ended up selling that stock for a small profit. I would have done real nice if I would have put some more in it. Before my account was set up I told my brother in law about a stock that I wanted in on but my account wasn't ready. I told him he should do some research on it. He decided to go by my word alone which I advised against. He put some money on and it climbed steady. Not as fast as the one I did days later. But when my money came in it was at a point where I felt it was too high for me to jump in. I missed the window I set. Then I received a email about 2 or 3 stocks that were going to climb. I looked at it and found his stock on the list. I warned him right away but that excited him because he knew it could climb. I told him it would climb but at some point it would drop like a rock. After keeping an eye on it I suggested that he sell right away. This is were greed set in. He wanted more. If he would have sold when I told him to he would have made some nice profit. I think he sold on the way down. I can't remember if he made any profit at all after fees. I had one that jumped around. They had news of this land they bought or signed to drill on. It was going to turn this stock into $1-3 from what people were saying. Then the CEO was being investigated for something. Long story short. I lost a small amount of money in it. Some lost a good amount. Some believed in it so they were buying more on the dips. Some were doing this as well to lower their overall cost per share. Some made money on it many times by buying low and then selling and waiting for a good price to buy in again. If you are going to do it you have to be watching at all times. You could go to the bathroom jumping around about the $100 your up and then come out to find that you are $80 in the hole. It can happen that fast at times. Sometimes it can take a few days for it. Some say buy on rumor, sell on news. Always be on the look out for people pumping your stock. If they are pumping it, they already bought it. So you have to start looking for your exit. Hopefully you can get out before they do. Sometimes they will pump it for days. Guess it depends on how fast it moves for them. Don't be greedy. Look at the some of the stocks and learn as much as you can. Today DEEL (Deal a Day Group Corp.) is up 153.3%. It is selling at $0.038. Todays volume is 1367396. But the 30 day average is 293. That is why you can be stuck with it. $100 will buy you 2631 shares. Lets say you are lucky and have $10 trades (I wasn't that lucky). You need $20 to cover your buy and sell fees. So you need need it to jump 20% before you are even. If you bought in at $0.015 yesterday you are golden if you dropped it sometime today. If you were in at $0.015 and sold at $0.03 you would have $80 in profit. But why would you buy the stock in the first place when it wasn't moving? I think I would say it is closer to gambling then it is "investing". But there are people that make a living with gambling. Read about some stocks. Then watch them and learn as much as you can. Just remember it is risky. Don't put your rent money on a stock. Your coffee money is ok to risk. James
Flexin, sorry, but you are wrong factually about most of what you said. First off, Microsoft never sold for $.09, not even close. I think the lowest it ever got was about $20. What you are talking about is reverse stock-splitting it back to it´s share price in 1986. That is a completely different thing. But you could never go on NASDAQ, even in 1986, and buy MSFT for pennies. Also, nobody said you can´t make money on penny stocks, what we are saying is that it is not investing, it is playing a slot machine or the lottery. And again, quoting a ´big winner of the day´ does not make penny stocks investing.. they also announce winners of the lottery. In fact, with your DEEL ´ hindsite pick of the day´..I would imagine there were very few investors besides insiders who benefited. The problem with penny stocks is it is impossible to get really good intel on them, and you will always be playing against insiders, who not only have the intel, but also have the ability to manipulate the stock price. In fact, playing the roulette wheel or the lottery is probably a better gamble because at least they are regulated a little.
Sorry my data was wrong. I went by Yahoo's chart. It seems like it started at $25 and rose to $85 in a year. My point is still the same. Microsoft is one of the ones that excite people. They want the next Mircosoft and they want to find them in the penny stocks. Did you read what I wrote about DEEL? People see that the 153% gain and get exciting. This is why people want to risk money in the penny stocks. I also pointed out that I can find no news on the company. I forgot to write something in that as well. I did a quick search and they haven't posted news since January 2013. So if it is insiders they would have to know news was coming out. With only about $20000 traded, nobody made any big money today. It might also just be pump n dump guys loading up on the next stock they are going to push. And it is "only" at +153%. With no news on it that I can find, someone is loading up. I wouldn't touch it myself but to me someone looks to be playing games. I don't feel anyone will benefit till tomorrow. Maybe a 2-3 days later if it is going to be pump n dump. And that isn't a big jump in penny stocks. I also said that I would call it gambling and not investing. To me, you invest in a company that you believe has potential. New tech, new discovery, great business and so on. With the penny stocks most are just gambling or trading. Your right about the intel. And you never know if the intel you have is "good". The company could be lying. You are taking big risks playing them. I would never put big money in them. They are not something to hold. But the intel you need is why something is moving with the penny stocks. Like I said. Some buy on rumors, sell on news. CURM is an example. Cur Media Inc. It was announced on the 3rd that they were going to have a conference call on the 5th at 4:30 pm. On the 4th it closed at $0.89. On the 5th it closed at $1.36. Today it opened at $1.41 and closed at $0.86. Now I didn't check on what they said but it looks like they just bought on the news and and then sold. Looking at some of their info, they won't have a public release to summer. I'm sure people will try to ride any rumors of good news up and drop it. If anyone is planning on buying penny stocks, do a lot of research. Pick stocks on paper and watch them. Put down the price you would hope to get in (sometimes you don't get in where you want) Write down your plan sell price. Search for info for each and write down why you think it will move and what price you think it will hit. Then check the stock and see how it is doing. See if it hits your target sell price. See if it went over it by enough so that you had a chance to sell. Do this with a lot of stocks. Try 30 or so and see how well you did on paper (paper is different then real world. I had stocks that I couldn't even buy into. They blew by my bid.) And if they did meet your targets, how fast did it happen? Do you have a job that will allow you to check it a few times an hour at least? If you don't have the time to keep an eye on it then don't bother. With sports betting you buy in and that is it. Your target is the team you pick. You hit it or you lose. With the penny stocks, you have to adjust your target. Things might have changed and you have to get out early. It is fast paced. If you can't baby sit it then save up and try to invest into a good company on the big boards. James
And for every DEEL there are 10,000 other penny stocks that never go anywhere. You can´t just pick the biggest gainer from yesterday´s newspaper as ´proof´that penny stocks are a good way to earn money. And again, your DEEL was manipulated by a handful of insiders. The amount of money it took them to push the price that high was minimimal, and they knew in advance they were going to do it. You know who didn´t win? The guy who saw the stock shoot up and bought it at the end... which is EVERYONE except the insiders. And your comparison to Microsoft.. it just makes no sense. Microsoft was a great tech company in the mid-1980s to invest in.. but it was never a penny stock and has nothing to do with penny stocks. It was always a viable company with earnings and profits and always traded above $20 per share. Yes, in the history of the stock market, there have been millions of companies that doubled and tripled in value in just a couple of years. Microsoft was doubling in value almost every 18 months for about 8 years in a row. Doesn´t make any different to your argument because it was never a penny stock, not even close. In fact it defeats your argument, because if you can double your money with a big company that has solid earnings.. then why invest in a company with no earnings and with such low volume that insiders can manipulate the price against you any time they want. Again, back to your DEEP that did so well the other day.. NOBODY doubled their money except the insiders. Normal investors are the ones who helped them realize their double when they sold.
