New investor looking into penny stocks!

Hey guys,
I am new and wanting learn the ropes of the stock market! Are penny stocks the way to go? I have about $500 to "learn" with for now! So, which websites should i use to buy and sell penny stocks? How do i choose the right penny stock? And can you all give me any tips/tricks you know of? Thanks!

 

Yeah I could use some tips too. Im curious about penny stocks and have never invested in any. I dont know if its a good idea to, but Id like to test the market out.

 

The news guys always go for the penny stocks first. Thats because their interest to begin with was probably created over what they have heard when people were talking to them about penny stocks. Anything is amazing when it does well. It's the failures your friends dont seem to like to talk about. You are likely not going to see much in return from a penny stock thats just how it goes.

 

As JrEwing said, read, read, read, and then read some more. I've personally avoided Penny Stocks in the beginning of my investing time, but you need to be knowledgeable about what you're putting your money into. Ask yourself why you're putting money into that company. If you can't come up with a semi-decent answer with some information behind it, then you're just gambling with your money.

 

I like the idea of penny stocks. Cheap investments that have a potential for a great gain over time. However, it seems like every unproven company is kind of in that area. With that said, I do plan on reading and watching more financial based media in order to get a feel for things. Has anyone had any success stories to share on the use of Penny stocks?

 

Why is it that all the new guys want to do penny stocks?
Do you really think that you're capable of picking out the 1 out of a thousand companies that will make it big and will turn that $500 into $5000 in a few years?

The best tip I can give you: take it easy and start with the more well known companies, either some very large global brands or maybe something in the utilities sector. Low volatility and a profitable company. Risk management is one of the most important parts, and diving straight into penny stocks (especially with only $500... as due do commissions it's not smart to buy more than once or twice with that) is the risk management equivalent of falling flat on your face.

 

It is funny how new investors will go for the penny stocks. It just makes you look completely uneducated if you jump right into the penny stocks. Yes, if you pick a winner you will profit a lot of money. Chances are, you won't. Knowledge is power. Research before you hop in and buy penny stocks. It might be a waste of money.

 

You need to remember that penny stocks are just baby versions of regular stocks. Meaning that when you see a blue chip stock go well, look for the penny version, a like product, and start there. That's what I would do.

 

I am very curious about penny stocks. It would be nice to start here with investing and see how it goes. I fear investing large amounts for the first time and losing it.