any advice on penny stock investing?

Question

just looking to make a number of good small investments.

Answer 1

While I agree with what many have said about investing in penny stocks - staying away - if you are going to invest in them no matter here is some advice.

1. Only use risk capital. If this is money you need to pay bills or buy groceries, you shouldn't be investing in the stock market period, let alone penny stocks.

2. Whenever looking at a penny stock be more critical and suspicious than you would be if it were a well established enterprise.

- This means ensuring that the company actually has real
underlying operations. You may be surprised that some penny stock companies have no functioning operations.

-Look at the financials to ensure that they have enough capital to continue their operations on an ongoing basis looking forward. Many companies in this space lack capital to fund operations, which will either lead to bankruptcy or a need to raise capital, usually having a dilutive impact on your position.

3. Do more research on the penny stock market itself such as its illiquid nature and its much more lax listing requirements - such as fewer requirements on disclosure.

Here are some good articles:
http://www.investopedia.com/articles/03/050803.asp
http://en.wikipedia.org/wiki/Penny_stock

Answer 2

I agree with all of the above. The reason penny stocks are so "cheap" is that they are usually small companies with questionable outcomes. Its the wrong place for newbie investors. I've even dabbled in them personally a few times, but only with money I can afford to lose, well less than 1% of my total investment money. EVERY one has so far failed to gain, much less break even, and moves up or down 30% or more in one day! The problem is it might move up 35% in one day, but down every day after that for weeks on end.

As far as making small investments, you can buy 1 share of stock (in some cases less). I recommend you check out www.sharebuilder.com .

You can select investments in larger, more profitable companies, and then buy a few shares at a time of their stock. Sharebuilder offers $4 trades but you buy once per week or so. Its a good way to set up a plan where you constantly buy small amounts of stock with almost no startup money. You simply deduct an amount of your choice from your bank account each week and tell them what you want to buy with it.

Answer 3

Take everything you've read about getting involved with penny stocks and bury it.

Bury it deep.

With a shovel.

Then throw away the shovel.

Then, if you still want to get involved in the market, start putting money into a NO-LOAD index mutual fund, such as Vanguard's Total Stock Market Index Fund. You'll at least have a likelihood of not losing it all, as you will in penny stocks, plus you'll actually make a pretty decent return most years. Almost nobody gets rich quickly, but a whole lot of people get wiped out quickly.

Answer 4

Investing in penny stock have high risk. Big Institution don't like to invest in penny stock. That's mean stock hard to go up and easy to go down.

Answer 5

This penny stock service has years of proven experience. Ultimately it is the best service for beginners to use https://tr.im/wvQ37
You will have to wait between 3 and 10 days to get into the system in most cases. When I signed up it took 8 days. I wished it was faster, but if you can wait a week or two to start earn life changing money than you will have what it takes to make it in this business.

Answer 6

If you are going to invest in penny stocks look at Canadian resource stocks that trade on the US OTC. Canadian resource stocks listed on the venture exchange often land below a dollar. But the main thing is a lot of them have solid business models and experienced management. They are just starting out. In the US companies have to get to a certain market cap and share price to be on the standard exchanges. This is not true in Canadian. This even causes a good deal of US companies to go there. An example is US Gold Corp (UXG) which was started by one of the founders of Gold Corp (GG) . It started out on the Canadian exchange as UXG, and on the US pinksheets as USGL. Just recently it was ok'd to trade on the Amex. But in the meantime canadian traders, and wise US investors kept it trading. The big challenge is getting solid info, but it is easier for Canadian stocks than run of the mill pink sheet and OTC companies, most of which will disappear. However, to really play this market, I suggest using a brokerage that has good access to the Canadian exchanges rather than using the otc symbols.

Answer 7

If you're looking to make good small investments, don't invest in penny stocks.

Answer 8

Penny stocks are loosely categorized companies with share prices of below $5 and with market caps of under $200 million. They are sometimes referred to as "the slot machines of the equity market" because of the money involved. There may be a good place for penny stocks in the portfolio of an experienced, advanced investor, however, if you follow this guide you will learn the most efficient strategies https://tr.im/fb19f

Answer 9

My advice: DON'T!!
Almost everyone I know who has bought penny stocks has lost money. There is a lot of pump-and-dump activity in penny stocks. I get 'strong buy' email recommendations every day from pump-and-dumpers.
I recommend Exchange Traded Funds allocated between domestic, foreign and emerging market funds.
http://wwwtaxman.blogspot.com

Answer 10

If you are new investor stay away from penny stock, it will result in lose