Penny stocks

[Tom]

Has anybody invested in penny stocks and made a profit or is it not worth the time? Thanks.

 

[Dad]

Tom,

Been a futures floor trader, stock/options trader after going through the '87 crash as a stockbroker.

Penny stocks trade for those prices for a reason - that's what they're worth. People are attracted to them because they're cheap, and because every once in a blue moon some hype cause the price to explode upwards, after which it promptly crashes.

My advice would be to avoid these and the Forex market like the plague. If you want to dabble less expensivley, try options on decent, exchange-listed stocks. Yuo will have to spend time learning to analyse the underlying stock to know how to trade the option, though.

 

[Tom]

Thanks DAD

I will stay away from them and learn options. I am somewhat familiar with them but still much to learn before I jump in.

 

[hiddenbelow]

Penny's are awesome!!!!! J/K

If you are willing to risk the money you are putting in on them it is a big risk. Its hard to trade this type of stock though due to the lack of volume being traded. Not similar to a 5-10 dollar stock where 40 million shares are traded daily. Basically what I am saying you buy the stock for 45 cents a share and it goes up to 1.25 thats awesome. But if you want to get rid of it no one is going to buy the damn thing.

So penny's are shitty in life and in the market.

DW

 

[cobra333]

i have

i have a good penny stock ....one dealing with and investing in the war and terrriosts.. this company helps us identify the bad guys .... its a hot penny stock ... it will do good when there product implemented ... for any future attacks hopefully none ...

email me [email protected] we can talk about a trade ....

 

[notthatstrongyet]

I got some penny stocks about 7 years ago and now are finally worth something. It is an oil company in Canada. They are about $6 a share now and rising. It's a risk but sometimes it pays off

 

[Dad]

Notthatstrong,

LOVE your avatar - another Hendrix fan!

 

[notthatstrongyet]

Notthatstrong,

LOVE your avatar - another Hendrix fan!

Thanks....My favorite guitarist ever!!!

 

[Monte Brogan]

I would steer clear of them as they typically have limited floats and therefore can easily be manipulated. Penny stocks are favorites in "pump and dump" schemes.

Dad's advice is sound, although options are a different animal entirely and require some additional study.

Monte

 

[Sassy]

The truth behind penny-stock spam

I'm not sure if this is any help or not, but I saw this article on penny stocks on MSN.com and thought of this post. It was long, so I'm just on to post the link.

The truth behind penny-stock spam By Kiplinger's Personal Finance Magazine
http://articles.moneycentral.msn.com/Investing/FindHotStocks/TheTruthBehindPennyStockSpam.aspx

 

[rl3355]

Tom,

Been a futures floor trader, stock/options trader after going through the '87 crash as a stockbroker.

Penny stocks trade for those prices for a reason - that's what they're worth. People are attracted to them because they're cheap, and because every once in a blue moon some hype cause the price to explode upwards, after which it promptly crashes.

My advice would be to avoid these and the Forex market like the plague. If you want to dabble less expensivley, try options on decent, exchange-listed stocks. Yuo will have to spend time learning to analyse the underlying stock to know how to trade the option, though.

good advice here...I would take it a step further and avoid stocks under $10. As Dad says, they're cheap for a reason. Go to Vegas!! LOL