I'm going to allow a rare glimpse inside my mind now. (Run while the running's good, for anyone faint of heart here!) Seriously, though, I have been like a wishy-washy yo-yo when it comes to penny stocks. I would looooove to play around with it but it would be like a hobby because I don't see very much potential investment return here... am I wrong about that? Then the next thought is that I have serious interest in real estate and precious metals... stocks scare me a tad, and penny stocks even more. Third... well, I really am not wanting to mess with needing a broker just to manipulate what I want to do with my penny stocks. Is that needed? I'll start a new thread about why it scares me and hopefully someone can put my mind at ease about this whole process.
I am so wishy washy about it myself. I have thought about getting involved in penny stocks, but I haven't made my mind up yet. I guess I'm going to have to try it sometime..
I have purchased stocks before but I never quite understood the appeal of penny stocks. How often do they increase in value? They sound quite risky. I know there have been stories about people becoming rich from them but I have never actually read a story, I just hear about them from other people encouraging the purchase of them.
I think you need to have significant capitol to get involved. I would stay away. It is just too risky.
Well, with all these great answers (thank you, everyone!) I think that I'll steer clear. It would have been more for a hobby than anything else, but I'm sure there are less risky hobbies available for me.
Penny stocks are just too volatile and unrepresentable to begin with. Since your only investing for the profits, it would be best to stay away from everything and find a local broker to explain the basics.
You can't just close your eyes and hope for the best when it comes to penny stocks. This is the issue that can lead a lot of beginning investors down a path of significant money loss. Penny stocks are great for those with expansive portfolios and significant capital in hand that can be invested. They are the ones that are able to withstand any volatile losses that might be seen from penny stocks, while gaining from the increases. Does this mean a beginner should avoid it completely? No, research is essential and should lead to quality results. Just focus on making sure you are diversifying the pot when it comes to where the money is being invested. Putting all of your 'eggs in one basket' (i.e. penny stocks) is setting you up to fail. Simple as that. Mix it up and you will see results.
I feel like Penny Stocks (at least the more I read) are like the fast food of stock markets and investing. I remember a friend of mine buying a new truck. I asked him how he got the money because we were broke and hungry college students and he told me he made a good penny stock move and sold the shares. Turned out (at least from what he said) that the stock he made the good move on was Serius Satellite Radio. So, most of the time with penny stocks it seems like you get a little something, a very little something. Sometimes you end up with the huge value meal and you get something grand. Other times you just get bad stomach pains and you never do it again. Pick wisely and maybe you'll be the person with the new truck.
For me, there is just no real incentive to pick the volatile penny stocks over regular stocks.. The risk doesn't seem worth it. What Gavin said: "Pick wisely and maybe you'll be the person with the new truck" can apply, but the same can be said about stocks.. If you apply a CFD correctly and take some nice pips home you'll have the same result. I won't completely steer away from them, though. I haven't dabbled in them as of yet, but it may be another tool to diversification.
I personally don't see the point in getting into such a volatile market and there are significantly better options out there such the objective is to make profit with a small amount of investments and watch it grow. Your best option is to learn some information from various sources beforehand instead of just throwing your pennies away on a very limited chance.
