Penny stocks have both good and bad reviews. As someone new to the stock market, I am curious about penny stocks. From my perspective, they seem to be a poor choice. Am I wrong? I have very little knowledge and am open to all opinions. Thanks.
No you are not wrong they are a bad choice and the chance are slim for winning lots of money. I don't know if there is a skilled way to win in penny stocks. This is why I am not going to go into doing any betting with them.
I'd read all of the threads in this forum carefully before you consider buying any low priced stocks.
That is the plan. I won't actually be investing for a while. I want to learn and make "fantasy" investments before risking anything. I am sure I will find all the advice needed to get started in this forum. Thanks guys.
Penny stocks are either scams, or lottery tickets, many of them have no real business+ given the microscopic price the transaction fees are huge compared to the capital gains. Start by some good stocks with a booming business.
I tell all of my friends who are interested in learning to invest that they have to invest in a few penny stocks as their "training wheels" and then they should never invest in them again. As far as I'm concerned, penny stocks do have their value to the newbie to the game: They teach you that you can lose. So many people think they're going to invest in the next Apple and won't have to take any risks to make any money, and so many people lose it all. Penny stocks give you a good idea of what is involved in the game and you don't lose a whole lot when they tank. (When, not if.) I like to get my friends to try penny stocks just so they realize that once the move up to the big leagues they could lose money, just like they did with their 4$ stock or their 8$ stock. But if you're looking to do anything other than learn the game, avoid the penny stocks like the plague. Consider them a lottery with a slightly better chance of paying out.
They are very good for you if you're new to the stock world. They teach you the value of losing and winning. Penny Stocks give you a really sincere idea about how you can lose so much money with just little. I would recommend doing them untill you know what you're doing.
If you are new to investing then I'd definitely recommend you to stay away from penny stocks. They are very risky investments so more than likely one of two things will happen. a) you get lucky and win big. Which makes you overly confident and big dreams of making thousands a month with a few clicks start popping up. or b) you lose most of your investment and never try again. Stick to big and well established companies in the beginning. Later on you can put a couple % of your overall portfolio into penny stocks if you want to.
Penny Stocks can be profitable if you know what you're doing. I am a short seller and have learned from Timothy Sykes that a lot of penny stocks that "Explode" won't stay there because most of the time that increased volatility is just a bunch of hype. When i take a negative position on a company Im profiting from it going down. Ill admit its a really risky way to make money but it works for me and I also don't deal solely in penny stocks.
