Penny Stock Investment

Discussion in 'The Cocktail Lounge' started by waseem59, May 10, 2014.

  1. waseem59

    waseem59 Well-Known Member

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    Can any one give me the genuine information on where i can invest penny stocks, and the investment done for the company should give me profits, Post your views
     
  2. JR Ewing

    JR Ewing Super Moderator Staff Member

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    There's a subforum here devoted to penny stocks. They are far riskier as a whole than higher priced stocks.
     
  3. waseem59

    waseem59 Well-Known Member

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    Can you tell me how from how much shall i start investing in penny stocks?
     
  4. crimsonghost747

    crimsonghost747 Senior Investor

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    Not a single penny more than you can afford to lose. That is the worst case scenario of course but with penny stocks you really do need to accept the risk of losing pretty much the whole investment.
     
  5. Rainman

    Rainman Senior Investor

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    The best advice you'd get is "don't dabble in penny stocks". But as Crimsonghost points out, if you still want to lose some money then spend only the amount you'd want to lose if you headed to Vegas . . . since it [investing in penny stocks] is very much like rolling dice.
     
  6. Flexin

    Flexin Member

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    Before you put one cent on a penny stock I would spend some time looking at some and see how they did over time. Look at the trade volume. Yes some of them jump like crazy which is really exciting but they can drop much faster. They can dry up at anytime as well. You could be a ton of shares with nobody trading. So then you are stuck. You have to sit there and hope the stock is still on the market long enough for a new rumor to spark interest or for someone to mess with the stock so that you can find a buyer at any price at all.

    I do believe you can get lucky and make a profit on one or some, but will it cover the loses on the ones that burned you?

    As far as how much to risk (I don't want to use invest when talking penny stocks) in a penny stock? Like others have said, never more then you are willing to lose. It also has to be enough to cover your buy/sell fees when you get out of the stock. Plus you want some profit left over or there wasn't a point in doing it. Figure out how much you need to spend to make a profit at the price you want to exit. I made that mistake once. I didn't put in enough so even though it climbed fast and was a great gain. I was trying to play it safe and not risk too much. Then with my high fees I was in a tough spot. I had $20 buy/sell fees. So I needed $40 to just break even. I had that in less then a half hour but it stopped there. If I put on more I might have had a chance to do well in a short period of time. I say might because there is no guarantee that you will find a buyer before that stock price drops.

    James
     

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