1. Q&A short answers - You can now answer questions with a short answer and that is exactly what I am going to do in this answer.
Investing in penny stocks should not be for everybody. Please bear in mind that penny stocks have prices ranging from... read more
I am not a fan of penny stock because the probability of you making a substantial profit is very slim, but hey if you can invest int he right company you may be able to make some money, but I believe penny stock is for investor with minimal capital.
As long as you know what the heck you're doing, you CAN make money with penny stocks. Anybody who says you can't is wrong. I turned $50 into $150 in less than a week, and I turned less than $300 into over $1000 in a little under two months. My gains are exponential. I plan to continually invest until I reach a substantial amount. Of course, it may take a few years, but I think it's worth it. Yes, the risks are there, but as long you make an educated decision, you will succeed.
Think about it. Wouldn't you rather lose $500 than $5000? Say you bought 5,000 shares @ 10 cents per share. A stock is more likely to jump from 10 cents to 20 cents than it is to go from $10 to $20. So, perhaps you sit on those 5,000 shares for a few months and suddenly the penny stock jumps to a dollar. $5,000 out of $500 isn't too shabby.
It really isn't that complicated.
Here's a hub that I wrote earlier on this topic.
http://hubpages.com/hub/How-to-Invest-i … cks-Wisely
One comment I would make, stay away from any of the spammy offers of "trading robots." Do real research on the stocks just like any other investment, and don't fall in love with the idea that a swing of "just a few cents is equal to a large percentage gain." It works the same way on the way down.
I can assure everyone that about 95% of the stocks on the pink sheets are scams (meaning no real biz, reverse into public shell, nothing but hype). Bulletin Board, prob about 40% are scam type, but since you have to be reporting, less so. Most of it has to do with actual business prospects and what you can earn per share.
That is all stocks trade off of - EPS OR what another company would purchase your assets for. Most penny stocks, especially on the pink sheets, have billions of shares outstanding, and they continually issue more. They pay rent, salaries etc all with issuing stock. This is never disclosed of course. Tell me this - a company with 50 or 100bil outstanding (this is common on the pinks) shares, how would they earn even .01 per share. - well the answer is the NET income would have to be 50 million dollars or 100 mil.
Most of the time, even if these companies captured 100% of any possible revenues and income in a sector they are in, they could never make that much. Some of their competition is in the sp500 etc - you actually think a company with 14k in the bank and an idea is gonna take out a huge conglomerate that is in that space - if you believe that, I have a bridge to sell you. If a large company with hundreds of millions in cash cannot make that much in that market, how would a tiny unknown company?? And this is just to earn .01 per share.
This is not to say they dont move, and you cant make a buck here or there, but from someone who has a HUGE amount of real experience on a trading desk, in general any purchase of these is a losing proposition in the long run. All the trading desks that trade in these are always net short. The only time they are not net short is when they load in long before a hype campaign starts (email spam, web spam etc, bs press releases galore) and then they sell into the push up. Some people make money but in the end, the manipulators take it all as it will go to 0, become a shell, then name change, rinse and repeat.
I have written several times on penny stocks, all I can say is stay away, far away.
The folks over at Doublingstocks.com have made it very easy to find those penny stock recommendations and earn you penny stock fortunes in minutes.
Do not be afraid to jump in and take advantage of what Doublingstocks.com has to offer and make yourself some penny stock fortunes.
I wrote a hub on this topic...Penny Stock Recommendations...
http://hubpages.com/hub/See-How-Easy-Yo … mendations
Be selective..do your homework.take your profits..I have a few I have followed, and done well
I have been investing in various penny stocks for about a year. I am conservative as I am one of those type of people that likes to read the fine print. I also recieve alerts of various penny stocks to invest in. I have missed out on some great penny stocks that have double or tripled and quadrupled in there price. You can flip $50 into a $1000 return easily or more. The best thing to do is to research which companies track legit penny stocks and just like with all types of investing you should also do your own research. People seem to forget that not all no name companies were penny stocks. Take AIG for example, which I am kicking myself in the but today. I had 167 shares when it was trading at .27 cents a share. Today it is trading at $40 a share. I sold all of it earlier this year because I was in need of money, but If I would of held on to that stock it would of been a return of $6500.
Do your research put the time and effort in finding the right stock and you can make money on penny stocks.
i have some info on my site about penny stock
I supply the stocks. You do your own research.
Best Penny stocks have a small market capitalization. Usually, these stocks are considered highly speculative and high risk because of their lack of liquidity. We post penny stocks list every week. Penny stocks have small capitalization and limited following as well as disclosure. We ensure to provide a full research report on each stock. We also make sure that over 90% of our picks are listed on either BSE or NSE.
We mainly focus on penny stocks that have actual earnings. Our dedicated team of professionals analyzes the stocks on all grounds may be its fundamental, technical, news or any other factor and then offers the accurate stock market tips. Thus, we are able to give you, what we claim. We recommend penny stocks to buy those have earnings breakouts and have volume so that you can get out when you want. Penny stocks are on fewer prices and have potential to go up to give at least 20 – 30 % return. We ensure that every stock recommended by us will give you 20 – 30 % return.
keep reading @ moneyclassicresearch.com
by thecollecktor 10 years ago
It is my intent to discover the formula for investing in penny stocks that goes beyond the hype currently being used. What criteria do you use?
by mafthfp 10 years ago
Where can I find out if a stock is a "scam" stock or not?Is there a list online of pink sheet, pump & dump, penny stocks? That would be pretty useful for helping people avoid these scams!
by Whitney 10 years ago
Basics about penny stocks
by keepitnatural 10 years ago
Anyone know if there is anything in penny stocks & if so what to do? I keep getting emails...about it which I don't trust but wondered if it's worth looking into at all?
by Kara Skinner 5 years ago
Are penny stocks smart?Because penny stocks are so cheap, I am wondering if it's a good idea to make a few investments now-- less than a couple of dollars-- or if I should save for a more conservative investment.
by ngureco 11 years ago
What Are Penny Stocks?
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