What are some good penny stock to buy?

Question

What are some good penny stock to buy?

Answer 1

Unless you are a great trader the answer is none. A penny stock can double in price yet when you sell you can end up losing on the trade. If you dont understand how that may happen then its best to stay away.

Answer 2

Strongly advise against penny stocks, of any kind. A rumor or recommendation on a penny stock, which is what you are looking for  are almost always designed to draw in inexperienced investors, that in the end, usually find there investment worth pennies when it is all said and done. These low volume, penny stocks are notorious for manipulation by professionals and pump and dump crowd.

Most people are drawn into penny stocks because they may have a modest amount to invest, and think, hey I can buy 10,000 shares of a stock, and if it only goes up 5 cents, I can make some money. Well the converse is true also.

You're much better off taking the amount you want to invest, and buy a company in a strong group, with solid fundamentals and technical action, and buy only a few shares. Consider a stockpicking newsletter service with a solid track record as an alternative to help you find what you are looking for if you don't see something on your own.

Answer 3

Great question.  

Needless to say it's not as important what penny stocks you buy..... but how you handle your money management (ie., exit strategies).  I'm assuming you've traded stocks for at least 5 years before doing this (and have a good handle on technical analysis). In addition, position sizing is critical (as you know).

I'm a little concerned that you'd ask strangers (whose qualifications and motives can never be known) which stocks to buy.  That seems a little dangerous to me. Considering most people lose money in penny stocks..... I'd re-think this approach... if I were you.

Right now "shorting" seems to be the way to go. If that's your inclination... check out;

http://www.slopeofhope.com/

For a good handle on the markets (in general)... check out;

http://www.alphatrends.net/

Good luck.