2007-09-22 12:41:43 · 5 answers · asked by Anonymous in Business & Finance ➔ Investing
Don't listen to these people. Some of the wealthiest people in the world made their starting fortunes with penny stocks. There are perfectly legitimate penny stocks out there, what makes them risky is that their prices are not determined using conventional methods. The other problem is that it's hard to get information on penny stocks. The naysayers are right, however, in that you could much more easily lose everything you've invested. So, you have to really know how to analyze and forecast or there is a good chance you'll get killed. Also, it's not necessarily true that you have to buy them in blocks of 1000 or 5000 or whatever that other person said.
Avoid the BS and have an independent mind. The thing about penny stocks is that you have to look at the timeline for when you might actually realize some returns, and you have to consider how viable is their business. Learn how to analyze all of their financials, look beyond their biased website for outside information, and then wait. And if you still aren't convinced, then don't buy. And when you do buy, make sure you are analyzing all of their numbers, and buy in portions over time. Don't dump all your savings at once.
Finally, hedge your investment with something less risky. Good luck, and don't forget to think for yourself.
2007-09-22 16:48:12 · answer #1 · answered by B 2 · 0⤊ 0⤋
All investments involve risk. Penny stocks are the riskiest due to the way they are promoted and lack of liquidity. Once an otc penny stock Uranium Resources URRE is a small company which mines uranium and is now listed on NASDAQ and trades for $9- 10 a share. Navistar NAVZ was listed on the NYSE but for some minor accounting problems was delisted and now trades on the Pink Sheets, i.e. over the counter. It's still a good company it was trading at $39-40 a share last March and now is in the $58- 65 range. Do your homework before you risk your money. I trade through Thinkorswim, they have great service and low commisions.
2016-05-21 01:58:06 · answer #2 · answered by ? 3 · 0⤊ 0⤋
I agree with "B". If all those other people lost their money with penny stocks then they were just completely oblivious to what they were doing. Also, "claudiacake" is 110% wrong. Just because they're penny stocks doesn't mean that they got like that because the company itself isn't a good one. A lot of these companies are NEW, that's why they're valued so low. Everyone bashes penny stocks, but no one ever bashes the people who bought shares into Microsoft or Facebook in the early stages. Another good way to find quality penny stocks is by signing up to this site: goo.gl/qBmyyL .... They send you newsletter alerts before a stock is predicted to bounce up and I've made a lot of money through them. You can also sign up to get their text message alerts.
2014-02-26 11:48:38 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Penny stocks are generally stocks that have been devalued down to literally pennies. They usually sell in blocks of 5000-10000 shares. They are extremely risky and you shouldn't put any money into them that you can't afford or don't expect to lose. I don't know about online trading sites because I don't use them, except my broker's site. My broker doesn't trade in penny stocks.
2007-09-22 12:50:58 · answer #4 · answered by claudiacake 7 · 1⤊ 1⤋
Take your money, build a campfire and roast some wieners and marshmallows. At least you'll get some use out of it before it disappears. peace
2007-09-22 12:47:56 · answer #5 · answered by Pilgrim Traveler 5 · 2⤊ 1⤋
There are no good penney stocks false data or none to look up to risky
2007-09-22 14:38:43 · answer #6 · answered by Anonymous · 2⤊ 1⤋