Penny share advice please?

Question

im looking at trading penny shares can wnyone offer me some advice

Answer 1

if u like to trade in indonesia i like to help u:)

Answer 2

Never pay the spread. Try and get nearest to the bid price. Find out what levels the pros are in at. Find out as much as you can about the company. Look at the BBs and tip sheets. If you are making a profit sell and sell on the buy tips.

Answer 3

Don't invest in penny shares. Most of the smaller companies will fail so don't waste your time or money.

Answer 4

Absolute suicide.The current environment means that minnows must die first.The FT said that the only stocks worth buying at the moment are FTSE100 due to international exposure and so less likely to have all eggs in one basket.

Penny stocks are for boom markets (unless a large company has become a penny stock very suddenly) ie Taylor Wimpey or Barratts or Moneysupermarket.com   Steer clear of proper penny stocks they will go bust

Answer 5

Trading penny stocks is a great idea.   I've been having fun and doing well with them.  When I first tried them it was a disaster & 20 years till I tried them again.

My big mistake was trading penny shares as my first investment experiance.  As it turns out this is the number one biggest mistake of all new investors. They're attracted to what seems like a quick way to make a lot of money.  

Nothing could be further from the truth.

Here's my first suggestion;

Wait 5-10 years, after investing and trading stocks (Large, mid and small cap). Learn money management (for trading). It's actually more important than picking the right "penny stock".  This would include stops and position sizing.

I read a book on trading almost every six weeks. If it's not a new book... I'm reading an old book.  This seems to be a common similarity among successful traders.  Work hard. Be disiplined. Always have an exit plan before taking a position.

Here's a place to start. I watch this video everyday. 50% or more of a stocks move is dependent on the overall market;

http://www.alphatrends.net/

Answer 6

I've been an active trader for 20+  years and trying to make money in penny stocks is far and away the most riskiest investment option out there.   Also, more fraud and SEC investigations than any other segment of the market.

Penny stocks are typically thinly traded on small OTC exchanges and you get killed on the bid/ask spread.  The sleaziest brokers in the business trade penny stocks.  

However, trading penny stocks is tempting because it doesn't require much money to get started.   Resist the temptation and save up your money until you have enough money to invest in regular stocks.