What are the risks?
2007-07-15 01:09:56 · 18 answers · asked by Aaron C 2 in Business & Finance ➔ Investing
most investors interested in penny stocks because they offer high in volatility which enough for them to make quick bucks in just an hour.
if you solely depend on volatility, then you take high unnecessary risk. reason is volatility is sentiment driven and nothing can point you the exact reason to what drive its fluctuations.
however, not all penny stocks are the same. it is better for you to concentrate on penny stock with real business. worst case, it won't go bankrupt at short notice.
2007-07-15 02:22:38 · answer #1 · answered by BigBen 5 · 0⤊ 0⤋
Penny stocks, also known as cent stocks in some countries, are common shares of small public companies that trade at low prices per share. They are notoriously risky but if you follow a special method I've learned you can earn good money at almost no risk. This is the site I use: http://pennystocks.toptips.org
I definitely recommend subscribing to this site in particular. Very good research, quality stocks. I was a bit weary of penny stocks from all the bad hype they receive but this guy is pretty legit. He's put my mind at ease with a lot of the fears I've had. I especially like that he doesn't send out announcements left and right. I've signed up for other websites that fill my in-box with one company after the other. I don't know where to even start with so many choices in front of me! Nathan sends me one idea a week and that's all I need. Working so many hours during the week leaves me with very little time when I get home to start doing tons of penny stock research. I'm always eager to see what Nathan's next suggestion is each Friday and I love having time on the weekend to do my research.
As said above if you want to make money with penny stocks you have to follow some proven methods. This one in my opinion is the best: http://pennystocks.toptips.org
2014-09-22 12:18:05 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If you make informed decisions and approach your penny stock investments with the same thoroughness that you’d use in your other investments, you too can unlock a whole lot of profit potential. Learn here https://tr.im/M3Srr
It’s absolutely true that penny stock investors can make very quick gains. Synutra International, Inc. (NASDAQ: SYUT) is a great example of a penny stock. This dairy-based, nutritional-products company has jumped from a little Bulletin Board operation to a billion dollar corporation. The company finally graduated from Over-the-Counter status to the NASDAQ Stock Market bringing with it 113% gains in less than two months.
This happens all the time and it’s how some of the best investors in the world became the richest investors in the world. Buying some shares for pennies on the dollar and selling at $10 or $20 is possibly the fastest way from being a hobby investor to a super investor
2016-02-15 19:44:50 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Provided that you can afford to lose the money it can actually be worth doing and a great deal of fun.
Many years ago (when penny shares were shown on teletext) I bought shares in Ratners, the Jewellers. They cost me 10.5p each. I sold about eight months later at .37.5 each. The did go up to .40 a day later - but after that they went back down to .90p. It was fun and like having a bet on a long horse race! I made about £400 - which paid for my car insurance for that year!
All you have to do is keep watching what they are doing and don't get too greedy - and also watch other penny shares that you are interested - I should have sold mine at less than I did and invest in some different ones. I could have bought for .07p and when I sold the Ratners (by then, Signature), they were worth .97p each!
Go for it - but make sure that you can afford to lose it first!
Good luck!
2007-07-15 01:47:34 · answer #4 · answered by Anonymous · 0⤊ 1⤋
Usually very risky, and only ever invest on the basis that you might lose the lot and end up with a worthless piece of paper - it's happened to me more than once! Many companies in penny share guides are at best no better than if you put money on a horse.
2007-07-15 06:17:16 · answer #5 · answered by Anonymous · 0⤊ 0⤋
It truly depends on the stock.
We held 200 dollars worth of Alph Bio Medical (now merged into something else) - hubby sold it - had we held it we'd be millionaires a few times over.
Not all pennystocks are like that. This was a viable company with a good product and an owner who was mortgaging his house up the yin yang to stay in business.
2007-07-15 01:18:12 · answer #6 · answered by Bogie 3 · 1⤊ 0⤋
No. The risks are that you lose all your money. If you want to have one or two as a part of a portfolio (no more than 20% IMO) than that is different. But any money you invest in penny shares you should be prepared to lose.
2007-07-15 01:13:21 · answer #7 · answered by Anonymous · 1⤊ 0⤋
1
2017-03-01 11:59:26 · answer #8 · answered by ? 3 · 0⤊ 0⤋
The share price doesn't matter, if it scores well on p/e and p/tbv and has a tenable business plan with competent management and reliable auditors then buy it weather it costs 10p of £10.
2007-07-17 01:49:33 · answer #9 · answered by Anonymous · 0⤊ 0⤋
You buy 100 shares you lose £1
You buy 1000 shares you lose £10.00
You buy 10,000 you lose £100.
There you go hun. There's the risk. No need to go any deeper into any deal than the bid.
Good luck. Hope you make a bundle! xxxx
2007-07-15 01:24:53 · answer #10 · answered by jennijan 4 · 0⤊ 1⤋