Are penny stocks worth investing in?
I’m very new to stocks and investing, so this might sound like a stupid question. But if anyone can help me, ill gladly take the advice. I handle my trading through USAA. I recently put $120 in my trading account just to mess around with and see what happens. I’ve placed some money in bigger companies, but lost a bit of it. so i sold what i could, and invested about the $100 i had left in a penny stock. I got 50 shares out of it, and it went from $1.30/share to $2.16/share in the past 2 days. It seems like a safe way to make money….is it really worth it? how risky is it if i decide to buy more of these shares? and is it necessary to hire a stock agent to help me out with my decisions?
Samson Oil and Gas- Symbol SSN
It is hardly a safe way to make money. Penny stocks are like going to the casino, sometimes you hit it lucky and other times you lose it all. If you are starting with a small amount such as you are, I suppose it’s a possible means of increasing your bankroll quickly and by a decent amount. But be advised, the penny stock business is full of fraud (ex: pump and dump schemes abound) and you can lose big more easily than win big.
How Are You Going to Tell Me that My List of 15 Penny Stocks are No Good?
I have a list of 15 penny stocks that I have been carefully examining. They go down but they never bottom out at below .01, and when they go down, THEY ALWAYS GO UP.
But I know there will be a bunch of ppl telling me that I am a fool for investing in penny stocks because they are “aLwAYS gOInG to LoSE yOU monEY”
but how can you tell me that if I have looked at these 15 penny stocks and they always have periods of downs AND ups, and they have never been below .01?
Maybe just any penny stock, i have seen those graphs where they do that, but the ones i have looked at that i just described to you, you can’t tell me that those are going to be terrible investments. and if you can i’d like to hear how.
Why do you care what everybody on Yahoo! Answers says? Nobody ever knows for sure what is going to happen. A great company’s stock price could crash just as much as a bad company’s stock price could soar.
How do I learn how to invest in stocks?
I’m 18… and wanting to try and gamble with a little money.
I’ve heard about things called penny stocks and would like to know what these are?
I have been raised in a family that never did anything like this, so I’m new to it all and don’t know where to begin. I don’t know what websites to look at, how to determine what is considered a good stock or not, when to buy and sell, how to buy and sell in general… what stock sites are good? I would be okay with throwing away 100$ on a stock… I only work part time and am in high school so I can’t really afford too much. I know I may not gain much, I may even lose it all, but like I said, 100$ isn’t that big of a dent for me. Can someone tell me good websites to look at/books to learn from/ or just give me some pointers themselves?
It’s all speculation, you have to be able to predict how well a company will do in the future. If you want to invest in stocks, I would suggest SLV, GLD, agriculture, gas and oil stocks. I would suggest the physical investment itself. If it’s written on paper, it’s only worth the paper it’s written on.
where can i find A LOT of information about investing in penny stocking?
also i would like a website where i can learn how to read a stock market chart!.. i tried a few but is very complicated
So you are looking to loose money quickly?
“Accordingly, the SEC warns that penny stocks are high risk investments and new investors should be aware of the risks involved. These risks include limited liquidity, lack of financial reporting, and fraud.”
(Penny Stocks – listed as “Pink Sheets) have “little to no regulatory or listing requirements whatsoever, at least compared to major markets.”
Avoid penny stocks. There is a reason why they are cheap. Most are worth nothing. It is easy to get in, and real hard to get out. If you are not very familiar with how market making works with these stocks, you should avoid trying to buy them.
— 19 year investment professional (see my bio)
Watch the movie “Boiler Room.” It is all about low priced stocks and the hype that surrounds them. The movie is based on a true story.
What would you suggest should be the 1st to learn concerning investing and trading stocks?
How do I invest in the stock market without going through a broker?
What is your suggestion on the purchase of penny stocks?
Thank you very much for your immediate response.
You can invest in CERTAIN companies (larger ones) by going directly to the company. Look up DRIPs (dividend reinvestment plans). Try Dripcentral.com or google it.
Penny stocks are not for beginners. It’d be like gambling.
Also consider using E-trade or (my favorite) Schwab for reasonably priced trades.
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