| Make money with penny stocks |
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billymac
New Poster
Cash: $ 0.50
Posts: 2
Joined: 30 Apr 2006
Location: Philadelphia,PA
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| Make money with penny stocks |
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what are your toughts on making moeny in pink sheet and penny stocks?
SSTY and HISC are two that I am in and have done well by me.
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Sun Apr 30, 2006 3:36 pm |
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Kiaser
Senior Member
Cash: $ 43.05
Posts: 209
Joined: 12 Apr 2006
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| Re: Make money with penny stocks |
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quote:
Originally posted by billymac
what are your toughts on making moeny in pink sheet and penny stocks?
SSTY and HISC are two that I am in and have done well by me.
Same as gambling. The odds are greatly against you, but there is that allure that you could "hit it big". At least in Vegas you could get free drinks while you throwing the money away, though.
If you decide to do it, make it a VERY small percentage of your investments (less than 5%), and emotionally detach yourself from that cash.
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Sun Apr 30, 2006 7:34 pm |
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Kiaser
Senior Member
Cash: $ 43.05
Posts: 209
Joined: 12 Apr 2006
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Here's another reason for penny stocks. If you are a smoker, quit. Put all that money that you save towards penny/junk stocks. You would have smoked the cash away anyway, but at least you'll be gaining better health in the process. In the end, if you have some long-term investment accounts, you'll add a few years to your life by quiting smoking. The extra years will let the appreciation or compounding interest of your long-term investments increase just a bit more. Walla! Even losing money in penny/junk stocks you can essentially gain money through other means.
Also, if you are addicted to lottery tickets, use that money on penny/junk stocks.
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Sun Apr 30, 2006 7:40 pm |
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Stock Mama
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Joined: 06 Apr 2006
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Walla? Add another Walla and you've got a town in Washington. 
There are some problems with penny stocks for us ordinary mortals.
First, the stocks are usually in small companies with very little track record, so making any predictions about the future of the business is difficult. Some of us ordinary mortals prefer dealing with businesses whose futures we can be reasonably sure of, barring hell and high water.
Second, penny stock are a whole lot more volatile than stocks in mid- to large-cap companies, because it takes so much less money to get a controlling share. All you need is one person who has bought up half the stock in the company to suddenly dump it, and voila, the stock price plummets.
Third, because of reason #2, it's easy for schysters to set up pump-and-dump scams, where they buy up a controlling share of some penny stock, which causes the price to rise. Then they run around trumpeting how much money they made, and try to get other people to buy in, which artificially inflates the price (that's the "pump" part). When they've found enough suckers, they sell all of their stock (that's the "dump" part), and the price drops again.
Finally, because volume is so low on the penny stocks, sometimes it can be hard to find buyers.
If you're going to go with the pennies, you really have to know what you're doing. Watch the business itself and the technicals like a hawk and know when people are moving into and out of controlling positions, so you're not left holding the bag. If you really want to do this, try paper trading penny stocks (that is, don't put any real money into it, but set up a play account using a spreadsheet on your computer or on Yahoo!Finance) for at least six months. You'll soon find out if you're any good at it, and find out if it's really something you want to do and learn more about, or if you'd rather invest elsewhere.
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Sun Apr 30, 2006 8:03 pm |
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Kirks
Contributing Member
Cash: $ 1.57
Posts: 26
Joined: 02 Apr 2005
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Everyday I get tons of emails about these stocks seem like a waste in my opinion. A penny stock I think not
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Thu May 04, 2006 6:25 pm |
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ashraf
Preferred Member
Cash: $ 27.69
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Joined: 24 May 2005
Location: The Middle East
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I say they are much worse than gambling!
Stay away from them!
You can not become free by accepting to be occupied
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Sat May 06, 2006 9:03 am |
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Rolo
Yo' Daddy
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Location: Colorado/Florida
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ARE YOU LISTENING JDUB2  
Has anyone ever built wealth from bottom-feeding? Is there a penny-stock Buffett or Lynch? No.
People think, "If it just goes up ONE PENNY..!", overlooking the fact that they are expecting a junk stock to gain 10% quickly and overlooking the quality stocks that can do that.
It's all about percentages, not absolute values.
"Expect me when you see me."
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Sat May 06, 2006 12:42 pm |
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jwhite622
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Cash: $ 17.25
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Joined: 02 Apr 2006
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quote:
Originally posted by Rolo
ARE YOU LISTENING JDUB2
Has anyone ever built wealth from bottom-feeding? Is there a penny-stock Buffett or Lynch? No.
People think, "If it just goes up ONE PENNY..!", overlooking the fact that they are expecting a junk stock to gain 10% quickly and overlooking the quality stocks that can do that.
It's all about percentages, not absolute values.
Rolo my dear boy...you must remember CISCO??? It too was once a penny stock..Oh...and how about DELL before it tanked? Let's not forget Microsoft, and Apple...
Reality is in the fundamentals...Any penny stock isn't going to be worth a damn...but a well researched one could grow to become the next super star...just something to think about...I've done my homework and DD...I know it's a risk...BILLYMAC is taking risk if he invests in penny stocks...but I'm sure he is aware of that...
I just hate that anyone would shut the door on any micro-cap...when it could be the next power house...
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Tue May 09, 2006 1:50 am |
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