How much return is there in penny stocks?

Question

I would like to get started but don't really no the return is when you make profit. I heard it can be like 300 to 400 percent sometimes. I'm afraid to do sharebuilder again because they took all my money in like a week, and they said something about I didn't have enough shares bought, and the commission that the broker made afterwards it was useless for me to keep the stocks, so he sold them. Plain and simple, I was losing money instead of making money after the broker earned his keep. So he sold my stocks and I put money in for nothing and lost it all. I'm doing my homework this time more better for the sake of actually getting some kind of profit from this. Help me out someone who knows about this.

Answer 1

I've posted a number of issues with sharebuilder.com. Nothing positive and for good reasons. See prev posts.

It sounds to me that you are gambling, not investing. If you are looking for fast money or fast returns, and don't care about risk this is gambling.

Speculating is not gambling. It is more calculated, where a good speculator has a plan going in and getting out before getting in. I didn't read in the post  that you had a plan here.

I have posted numerous warnings about penny stocks/ penny stock hype. See past posts.

Bottom line.

The vast majority people lose money in penny stocks. I don't have time to go into all the reasons again why (prev posted), but I have 19 years experience in this industry and that should be enough to save you from getting into another bad "investment" strategy like penny stocks, or Forex, or some other hype.

There are always "stories" of making a killing in penny stocks, Forex, trading stocks, options, etc. It happens at times. You never read the stories, "I lost my a** investing in penny stocks or whatever."

Making an instant fortune does NOT happen to most people or we would all live in utopia.

I've been a broken record, advocating simple long term proven investment strategies (see prev posts re: S&P500 Index).

Too many people here want the quick buck and they have no or limited experience and little capital to roll the dice with it.

Think about it.

Good Luck!

Answer 2

As long as there's a fool thinking that he's going to get rich there are brokers willing to take you for what you put in.  

And, so-called penny stocks are the niche of many of them.  That's where the fools gamble.  No, I deliberately did not call it invest.

Seriously, there are many good brokers available and most would highly advise against these penny stocks.  Yes, one in a hundred transactions may do extremely well but most are a HIGH RISK GAMBLE.

If you cannot afford the risk don't invest in stock should be a basic rule to follow.

Answer 3

stay away from penny stocks

Answer 4

The vast majority of investors lose money on "Penny Stocks"....just like anything else "cheap", they are cheap because they aren't worth much!

Sharebuilder is an excellent way to invest, but only if you put regular amounts of new cash in each month, and make regular purchases.

Answer 5

I've been playing the penny stock market for about 3 years now.. The first thing I would tell you is the golden rule of penny stocks: NEVER INVEST MONEY YOU CAN'T AFFORD TO LOSE ALL OF. Having said that the returns can be tremendous. I've seen ones go from .04 to 4.00 in a couple of months. I've managed to ride a few up 10 times from where I bought them as well, just keep in mind they can drop just as fast or faster. The best place I've found to look is www.investorshub.com  . If you search for the names "BRIKK" or "lowman" under the profiles, those are some people that have been pretty good at picking them. Good luck! (Also, options have these same kind of returns, but in my opinion are a bit riskier because they can (and often do) expire worthless, but you might want to look into them if you're into the riskier game.