Stock Markets Exposed
Is it a complete waste investing in penny and nickel stocks?
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Public Comments
- Yes - any stock priced less than $5.00 (and therefore not allowed to be listed on the major stock exchanges) is very risky and could even be a fake company (see the movie Boiler Room w/ Giovanni Ribisi) - very easy to lose all your investment in those kind of stocks
- You can make or lose a lot of money.
- Generally yes, however there are those who really know what they're doing and can trade pennies well, and there are those who are just naturally lucky and can trade them well. the following are a list of investing books, look carefully as some are guides for penny stocks http://amazon.com/s/ref=nb_ss_gw/103-2374866-4542222?url=search-alias%3Daps&field-keywords=penny+stocks
- I have several penny stocks ( some actually less than a penny value in each share). This is a great learning ground in how stocks work and what your own investing discipline is. I have found it a good way to find those little know companies that are start-ups or the like. You can make an income from this if you have the analytical skills needed and are willing to do the traditional thing of buy low sell high. However, you must be willing to play this as a long term project rather than a get rich quick plan. Right now is a very unstable time in this and other markets. However, this can also be a good time to pick up some great buys because of low prices. The best thing is to never invest more than you can afford to lose. So, it's not a complete waste for learning, investing in small businesses ( and some larger ones), and possibly making a good return. This is something I feel is one of the basic building blocks of American commerce that people can be part of.
- Investing in any stock brings about some level of risk. However, when you are risking pennies and nickles, how much investment could you actually lose? Investigate thuroughly and then invest in a few of these companies. You might end up with some winners. Keep in mind that every portfolio needs balance, so don't put all you money in a few of these penny/nickle stocks. If you are properly balanced and invested, you are more able to absorb potential losses on these stocks.
- Not if you can pick a stock that makes a gain. I am using http://goldenbullstocks.com and they are good. they do charge a small fee but they are worth a look.
- I believe that trying to beat the market is a loosing proposition and Betting the market is a winning proposition. Buying individual Penny /nickle.... stocks is akin to playing roulette with a 10000 number wheel the payout is amazing buy mostly you loose. You have an excellent chance of running out of funds. Also there is a large chance of some level of price manipulation in cheapo stockies. I did it for a while and gave it up years ago. Now is noload, low cost, diversified and Passively managed mutual funds. To me its like being the house at a Blackjack table. There are no guaranteesshort term but the odds are with you longterm. Good luck with your penny stock phase. Gerry
