Your Questions About How To Invest In Penny Stocks

Thomas asks…

What are the ups and downs to investing in penny stocks?

How reliable are they? What kind of hoaxes are there out there involving these kinds of stocks? What are some of the best ways to invest in these stocks? Is it even worth my time?

John answers:

Hi, here is a collection of informative articles about investing. A free online investing tutorial for you.

Http://www.investingtutorial.info/

good luck !

Wish you make fortune from investing !

Helen asks…

How to Invest into Penny Stock ?

I am new to stock market and know nothing about penny stock shares. Please let me know how to invest in penny stocks and what is the process for investment.

John answers:

Before you actually jump into penny stock, you must first understand the benefits and drawbacks of investing in penny stocks. It is best to diversify your investment as far as penny stocks are concerned.

Maria asks…

Im 18 an i want to learn to invest in penny stocks.?

i want to know the investing sites and how they work.

thank you.
R.
Thank you jim an hugh!

i have one other ? so if I buy 1,000 shares in a stock. will they broker charge me 5$or w.e for the whole thing or for each share.???

John answers:

Damn lol, stay away from penny stocks man. From how you’ve phrased your question, i’m afraid you don’t know enough about stocks and stuff without blowing your cash fast. And for penny stocks, its a matter of not if you make or lose money, but how fast you lose it.

You said i want to “invest in penny stocks”. You don’t invest in penny stocks, sorry man. You can trade them, but penny stocks are so erratic that it is almost impossible to trade them successfully, especially for an 18 year old (who won’t have enough capital to pull off the techniques market makers use.

If you’re wondering about comissions, here’s a list of brokerages and their prices:

http://finviz.com/store/stock-brokers.ashx

For the “per trade” rates, they basically charge a flat rate for your stock trade, and a per share rate for every share you go over a limit.

For the “per share” rates, they basically charge a flat rate for each share your trade.

I would recommend you going for the “per share” rates if you don’t have a lot of money, and are only goign to be trading small amounts of shares. However, if you are going to be trading penny stocks at pips (1/100 of a cent), then depending on how many shares you’re trading, to go with the “per trade” rates.

Chris asks…

DOES ANY ONE KNOW HOW TO INVEST IN PENNY STOCKS?AND WHAT STOCKS ARE GOOD CAN YOU TELL ME HOW?

CAN SOMEONE GIVE ME THE RUN THRU OF HOW TO INVEST IN PENNY STOCKS? WHAT PENNY STOCKS ARE GOOD TO INVEST IN AND WHO SHOULD I GO THRU LOVE TO HEAR YOUR STORIES I HAVE A COUPLE 100 TO PLAY WITH HELP PLEASE NEED TO PAY SOME BILLS THANK U

John answers:

When you invest/trade in penny stock you should never put up more than you can afford to loose and you should assume you will loose it all. Unlike regular securities, penny stocks usually do not let you use risk cutting procedures (options and/or stop orders) since most are not traded in a regulated market place.

They say when you buy securities you have a 50%-50% chance of making money, when you buy penny stocks you have a 50-50-90% chance, 50-50 chance of making money and a 90% chance of loosing money.

When buying penny stocks, like any other security investment, you never invest 100% of you investing capital. Penny stocks are fun to trade, but you should never count on them to be considered part of your primary investment objectives.

Good luck, trading in penny stocks can be fun, but investing in them can be disastrous.

All that said, here are some websites that you will find helpful
http://www.smallcapinvestor.com/
http://www.stockwire.com/
http://alphaking.com/
http://www.otcstockexchange.com/
http://www.mcapstocks.com/Default.asp
http://www.pinksheets.com/pink/quote/index.jsp
http://ragingbull.quote.com/cgi-bin/static.cgi/a=index.txt&d=mainpages
http://www.swingtrades.com/

Lizzie asks…

Are penny stocks worth the investment, if so, what are the best kinds?

I’m thinking about investing in penny stocks, but would like to know – before making a commitment – if they’re worth the investment. How do I spot the best ones?

John answers:

Overall No. They are all bad stocks and all you can hope for is that there will be someone to sell you shares at a low price and someone willing to purchase your shares at a high price. There aren’t any fundamentals to base the value of penny stocks with the vast majority loosing money (they got to be penny stocks because they were performing so badly). Most will likely go out of business in the near future making the stock worthless.

As an example, some people made money betting on GM stock when it fell below $1 but like most penny stocks, it became totally worthless when no one would bid $0.01 for the shares. However it was worthless long before no one would purchase the stock at any price but people were just playing a game hoping to be able to make a profit on the swings.

Investing in penny stocks is much like betting with a friend. You just hope that you play the game better than the other guy. Sometimes you do better and some times you don’t and there isn’t much you can do to improve your odds except to try to figure out where the high and low is at on gut feeling.

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