I'm So Wishy-Washy About Penny Stocks

Discussion in 'Penny Stocks' started by Kate, Apr 24, 2014.

  1. JaydonTyler

    JaydonTyler Well-Known Member

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    I don't even know why people talk about penny stocks. Penny stocks are for people looking to hit it big off of a small investment because they have very little to invest in the first place. The stock market was not made for small money. Dont play penny stocks for the simple fact you have little to invest.
     
  2. SilvioMaF

    SilvioMaF Member

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    Let me put it this way. Penny stocks are like lions. Yes, there are people in the circus that can tame lions and get along with them. If you have the aspiration to become such a person, all the better for you. Even circus people can get mauled by lions, but in general, if they treat them with respect, and train and learn how to be around them, they're fine. For everybody else: Stay the hell away from lions. They're dangerous creatures that can maul you. Sometimes, ordinary people get fleeting desires to pet a lion. They shouldn't act on those desires, because they aren't trained to be around lions and will get mauled.
    It's similar with penny stocks. Lots of people run scams with penny stocks. Some people know how to profit from those scams (they know exactly how the scam works and are extremely careful about how long they stay in a position). Some people know how to avoid the scams and how to find the 'nice' penny stocks that have good fundamentals and aren't being exploited in a scam. Most ordinary people don't possess either of those skills, and should stay the heck away from penny stocks.
     
    Last edited by a moderator: Jul 8, 2016
  3. Lasonax

    Lasonax Active Member

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    Penny stocks are very risky, but sometimes it does pay off taking the risk. I wouldn't personally risk everything on penny stocks, but other people don't seem to have any problem with the high risk. After all, the gains can be pretty huge, atleast percentage wise, if you succeed.

    But yeah, since it's a very risky game, I'd stay away from it unless I felt comfortable taking the risks. With bigger risks comes bigger gains though.
     
  4. Onionman

    Onionman Senior Investor

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    I personally would start with buying blue chip stocks rather than jumping straight into penny stocks. Penny stocks are volatile, often not very transparent, poorly regulated etc etc. You could get lucky or you could lose your shirt. But it really depends on what angle you're going for because the returns you are hoping for have to justify the risk you're willing to take.
     
    Last edited: Apr 9, 2015
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  5. BullishFTW

    BullishFTW Member

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    Penny stocks are mostly pump and dump scams.
     
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  6. teastocks

    teastocks Well-Known Member

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    When I was thinking about getting into investing I really thought that penny stocks was the place to get started. I came to learn quickly that this is not the case. You will lose a lot of money when you get into penny stocks and most of the time it is filled with scams. My advice stay far away and look to put your money into things that will make a lot more sense and money in the long run.
     
  7. CarpeNemo

    CarpeNemo Well-Known Member

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    If you have to pick up a hobby, pick up one where the hobby or the products the hobby uses retain their value. I've been playing guitar for years now, and my guitars are like my kids to me, but it's slightly reassuring to know that should the bottom drop out of my bucket I'll have a last ditch effort to keep myself going under.

    Penny stocks are too flighty even for light investment. If you've really go no qualms about spending money playing the game, then by all means, but I certainly don't recommend it to anyone who's worried about putting a loaf of bread and a pack of bologna on the table.
     
  8. crimsonghost747

    crimsonghost747 Senior Investor

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    That is the right attitude. If it's a hobby then ok, but anything more serious is a big risk with penny stocks.
     
  9. Brocker411

    Brocker411 Guest

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    What I've gathered from investing in these penny stocks is that it's well suited for someone who enjoys playing the lottery. I should recommend them to my brother, he's the luckiest guy I know!
     

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