Does anyone know anything about penny stocks and how good they are investment wise?

Question

I've been hearing a lot about penny stocks lately, but haven't done much investing so I wanted other peoples point views on them.

Answer 1

Penny Stocks are the last thing a new trader should be getting into.

You are going down a road that most of us have been down. We started out thinking how easy it would be. I know a firm that will walk you through them, etc.

It's not going to happen for you. You may luck out on one or two..... but you will lose big money.

Take a year before you even put 1 penny down. Read as much as you can. Know the risks. Know money management (as it relates to investing and risk/reward ratios).

Start investing with Mutual Funds and later large cap stocks. Do some ETF's. Have an "asset allocation" (always).

Read Read Read. And then read some more.

Consider yourself warned.

Answer 2

Many people think that penny stocks are a good idea because you can buy lots of shares for a very small price. The problem is that most of these companies are in dire financial situations, making them very risky investments. The companies usually have little or no income and operate with huge debts. Rather than buying lots of penny stocks, look into getting a few shares of a reputable company.

Answer 3

I think you may forget about this idea. They are a penny because they are worthless. At the moment, as never before in history, the value of all stocks in our financial markets are inflated to a numerical 'value' which is an illusion. I know gold may seem expensive at the moment, and you get a small amont for your money. But in the not too distant future we will not use dollars anymore and the value of gold will rise like a beachball underwater. Forget stocks- the stock markets are going to crash in the next 12 months. Look for gold 5g or 10g or 100g bars. Ideally, save up and buy an ounce if you can afford it. Why would you buy stocks anyway?- whenever you get any return it is in dollars, so you are only accumulating more depreciating money, making your gains in reality loses. Why do you think all world governments are buying gold? Most are also REFUSING to sell? You won't hear about tthis in the news, go get some.

Answer 4

Penny stocks, many of which trade on the pink sheets (OTCBB), are not under the same scrutiny as a typically-traded public stock. NYSE, Nasdaq and Amex stocks all need to adhere to certain disclosure, oversight, governance and minimum financial health regulations.

Penny stocks are thinly traded and highly illiquid, meaning that small movements can significantly impact the trading price. It is easier for irreputable traders to influence the price of penny stocks in their favor and "insider" trading is rampant.

Some "fallen angel" stocks can wind up in the pink sheets or as penny stocks. These are reputable companies that have lost so much value in the markets that they de-list from the major exchanges and maintain a listing on the pink sheets. These may eventually climb their way out.

But overall, penny stocks are generally a fool investor's game.

Answer 5

So..
I've been trading the market for just a few months. My cousin actually told me about this website ( http://pennystocks.toptips.org ) and I signed up immediately after. This is my honest review about their method. I'm not someone who has a lot of time to be researching for ideas because I work many hours. they made it incredibly easy for me to make money in the market. Their reports are easy to read and follow. I've tracked most of the stock ideas that I've received in my e-mail from them and MANY have seen some nice gains after their announcements. I've made a nice profit (55% return on my investment on one, and 112% on the other!) on a couple of suggestions he's given and plan to start trading his ideas a lot more.

For more info: http://pennystocks.toptips.org
Bye

Answer 6

I can name a few people who have gone to prison over penny stocks. Not worth the effort, and pennies lead to dollars of loss if you're not careful. Very risky to say the least.

Answer 7

Unless you know something personally about the particular stock, this is not investing, it is gambling. Invest in what you know. Invest in something more liquid that trades regularly.

Answer 8

Typically they lie somewhere between poor and worthless. There is generally a reason why the shares are not more highly valued. You could get lucky, and make some money, or unlucky -- and lose quite a lot.

Answer 9

A trip to Las Vegas or to the corner store for a lottery ticket is a wiser investment.

Answer 10

try http://pennystockpicksfree.blogspot.com