Are penny stocks good to invest in?

Question

Are penny stocks good to invest in?

Answer 1

Yes!!!!!!  After you've got 5 - 10 years of solid trading experiance.

Answer 2

When buying penny stocks, like any other security investment, you never invest 100% of you investing capital. Penny stocks are fun to trade, but you should never count on them to be considered part of your primary investment objectives.

If you invest/trade in penny stock you should never put up more than you can afford to loose and you should assume you will loose it all. Unlike regular securities, penny stocks usually do not let you use risk cutting procedures (options and/or stop orders) since most are not traded in a regulated market place.

They say when you buy securities you have a 50%-50% chance of making money, when you buy penny stocks you have a 50-50-90% chance, 50-50 chance of making money and a 90% chance of loosing money

Answer 3

I view penny stocks as gambling.  So, if you have a few extra bucks around that you are alright with losing.  Then, I say enjoy some fun in the market.  However, if you're looking to enhance your worth over the long term with much better odds.  Then, look into some Mutual Funds.

If you're still interested in penny stocks.  Which, I have personally both gained and lost a good amount on.  I'd recommend you check out the following websites that I've pasted below from a previous post of mine.

Penny Stocks Finder, a great site to find which penny stocks are being talked about and/or hyped the most by investors.  Since penny stocks are mostly driven upwards by rumors and speculation, this site proves helpful in keeping on top of what most penny stock investors are hyping before they really start to move. It also provides resources for researching penny stocks such as quotes, charts, etc.

> http://www.thehotpennystocks.com

Another site I like is StockReads.  Its catalogs recent stock newsletters and organizes them by the stocks they mentioned and the stock analyst that is promoting them.  Again, since penny stocks are pushed upwards by hype, this resource proves very helpful.

> http://StockReads.com

Finally, a penny stock blog I like to follow.  The investor that runs this blog scans for penny stocks nightly that have had a sudden spike in volume and upward price movement.  Nice resource to check out which stocks are really starting to move.

> http://www.pennystocksinc.com

Good luck to you, and happy investing!

Answer 4

no.

(I could go into great detail and have on this question in prev posts. Just trust me, you may get lucky and make some money on a few trades and get hooked. Most people lose money the longer they trade penny stocks.)

Answer 5

People prefer penny stock because it's cheap and can appreciate faster. However, the reality is: the absolute value of the share price really does not make any difference to your returns in the ultimate count.

Similarly, in the process of ramping up stock prices, the promoters may indulge themselves in a lot of publicity stunts and issue announcements stating a revival in business or big new order or a new acquisition etc.

They may also cook up their books and show profits after registering years of losses. Investors thus need to differentiate between what is genuine and what is fake. It's not easy to validate many of these details unless you have the resources to do so and are into it full time.

Investing in penny stocks is not easy. First, there are very little information on and research works in penny stocks available,

Another problem is liquidity. If you are stuck, you are stuck indeed. In the past few sessions, several small stocks have been locked up in the lower end of the circuit for many days on the trot. It may not be easy to take corrective action when negative news strikes as the exit window may just be shut by the time you realise.

Investing in penny stocks can surely be a get-rich strategy, but it involves a lot of risks, costs and efforts to succeed with penny stocks, which small investors can't afford.