Your Questions About How To Invest In Penny Stocks

James asks…

What is the best online broker for penny stocks?

Hey Guys,

So, I have been playing fantasy stock market for awhile, and I have a really good grasp of penny stocks. I am ready to invest with real money, but I want to start with a small amount of money. Like $100. What is a good online broker to use? I heard Zecco. Does anyone know anything about this company? Thank you for your help!!

Adam
Thanks David, I will make sure to sign up for your scam letter, and lose all my money on your pump and dump schemes. Lets be ethical here.

John answers:

This is not going to be the answer you want to hear, but it is 100% accurate.

Investing just $100 is not advisable. Even cheap online commissions ($7 each way) would be far too large a percentage for your trading to ever be profitable.

Fantasy trading is not the same as real trading. Bid/Ask spreads on penny stocks are huge. Your live returns would be dramatically lower than play returns.

Penny stocks are full of scams. Your question will probably draw responses from some regular spammers like pennystockprophet, killerpennystocks, *notlong*, *tinyurl*, onelinebusinessmall.

To be blunt, penny stocks are a stupid speculation, not an investment.

Best advice is to read a few books to learn about investing. Here are a few classics.

The Intelligent Investor – Benjamin Graham
A Random Walk Down Wall Street – Burton Malkiel
One Up On Wall Street – Peter Lynch

Joseph asks…

Does anyone know anything about penny stocks and how good they are investment wise?

I’ve been hearing a lot about penny stocks lately, but haven’t done much investing so I wanted other peoples point views on them.

John answers:

Penny Stocks are the last thing a new trader should be getting into.

You are going down a road that most of us have been down. We started out thinking how easy it would be. I know a firm that will walk you through them, etc.

It’s not going to happen for you. You may luck out on one or two….. But you will lose big money.

Take a year before you even put 1 penny down. Read as much as you can. Know the risks. Know money management (as it relates to investing and risk/reward ratios).

Start investing with Mutual Funds and later large cap stocks. Do some ETF’s. Have an “asset allocation” (always).

Read Read Read. And then read some more.

Consider yourself warned.

Nancy asks…

Is it possible to determine the liquidity of a penny stock?

I have made huge profits in penny stocks in stock games (I use pump and dumps created by other people as opportunities to make a lot of $) and I understand the risk but I still want to start investing some money (maybe a few hundred). The question is, can I actually check the liquidity of a penny stock (or any other stock)? Is there a resource that tells me how many shares of the stock are being bought/sold (at least over the past month or so) to determine if the stock is actually trading and if I will be able to sell it once I buy it?

Thanks.

John answers:

Penny stocks are the riskiest part of the market, totally inappropriate for a novice.

Please read the SEC warning link below to see if you really understand the risks.

You can look up a stock’s average daily volume to get some idea of liquidity. However, it is notoriously unreliable for penny stocks. Volume from the “pump” vanishes totally in the “dump” phase.

Really bad idea to try to out-scam the scammers. You will lose.

Lisa asks…

What is the best penny stock website?

Hey everyone! I want to start investing into stocks, but I keep hearing about these penny stocks jumping big time, so I want to start investing in those, can anyone help in a great website, that deals with those stock picks?

John answers:

There is no such thing. ALL penny stock sites are just pump and dump scams.

Penny stocks are a foolish speculation. Experienced investors avoid them like the plague, and so should you.

George asks…

What are going to be the hot penny stock picks for the upcoming months?

I just want to have an idea of the penny stocks that are good to invest in and that are going to explode in the upcoming months.

John answers:

Here Is my personal Penny Stock Pick Board It is updated daily, I have been doing this for almost 10 years now and it as been very profitable to me , be my guest:

http://investorshub.advfn.com/boards/board.aspx?board_id=16810

Powered by Yahoo! Answers

This entry was posted in Uncategorized. Bookmark the permalink.