I have been thinking about getting into stocks but I do not know where to start. Some people have told me to start off with Penny Stocks to see how I like it and some people say that it is a waste of time. What are your opinion about using Penny Stocks as a start? Any advice would be helpful.
I only know though that if you do use penny stocks just be careful since the value could shoot up and down periodically. I myself would not get into penny stocks its just something that you have to have good luck with to be really successful in.
Before you consider putting even a little of your nestegg into any stocks priced under $10, I'd read all of the threads in this section carefully. And take posts with any specific recommendations towards any particular low-priced stocks with a grain of extra caution.
Even at $10 I would look up some info about the stock carefully. I would just make sure the stock is from a legitimate source before buying.
This has been discussed quite a bit before on this forum. I would highly recommend any beginner investors to stay away from penny stocks. Stick to the larger, more well known and more stable companies first and then a couple of years later you can try penny stocks with a small % of your portfolio if you feel like it.
I wouldn't say it is a good place for beginners. For a beginner I would simply research a stock that you want, find an execution only brokerage and then go from there. Penny stocks are not really for beginners, although there is no specific reason to avoid them as a newbie.
I guess it depends on what you're trying to achieve, if you're just looking to get a feel for it and see how it works, it's a good choice, But if you'd like to see some action and even profit then it's a bad choice, since they usually take a very long time for you to see any ROI so your experience would just be watching them sitting there.
I think that penny stocks can be a good way for you to see how it works, but I feel the investment will not return to you, you need to go to bigger leagues to see real money.
Thanks for all the advice. I will continue to do research before I make any type of decision because I certainly do not want to lose a lot of money by doing this.
I've dabbled into penny stock in the past and I did not like it. I prefer forex myself. I could read and analyze the charts better.