Discussion in 'Making Money' started by GreenGoblin, Nov 3, 2009.
Has anyone ever invested in penny stock if so how did it go?
Yes. Wouldn't bother to do it again. It's kind of like buying a lottery ticket. You might get lucky, buy you're prob ably better off spending the money on BEER.
doublingstocks.com Want want aff link?
When you buy a promising new stock at $.01 or $.02, it's easy for it to double or triple in value. Conversely, when the stock starts off that low, there's almost no where for it to fall lower. Because of the low cost, penny stocks allow you to contain your risk to a few hundred bucks, and only lose that amount if you miscalculated.
I used to do the "buy 1000 IPO shares, when it doubles sell half, then you're on a free ride" approach, but it became increasingly hard to get a broker to cooperate on the sell off part. I would end up demanding the broker sell it all off, because they gave me a hard time over selling any 'odd' fraction (they considered even 50% to be awkward). They all want to milk you to drop a few more bucks in a new company, regardless of the financials. Later I realized that the reason they were so reluctant to sell off was it was much harder work to resell a stock after the initial offering, as everybody preferred 'the next new thing,' instead of the last offering.
Penny stock brokers pushed buy and hold over buy and flip. So I got out of it in the '90's. Always remember the joke: A broker talked an investor into a stock, which went steeply up over the next few days. The broker called back and reported this, and got the investor to buy more, after which the stock went up still further. Finally, the investor contacted the broker and announced he wanted to sell. "Why would you do that," said the broker, "you're the only one buying."
I invested wisely during the recession. Invested only $200 all I had that time and now that is almost $500 so that is a 250% ROI
This is a huge misconception.. When you buy a promising new stock at 0.01$ there is EVERYWHERE for it to fall lower.. like 0.005$ or 0.0008$ or 0.0001$ .. sub pennies are everywhere..
It's not even close to like that any more... trading in the 90s compared to trading now with online brokers is COMPLETELY different from what you just described.. The joke is just dumb, who wouldn't look at volume before buying?
When a blind IPO opens, there is no prior buying volume to reference from, hence you could often be in the situation of the buyer from the joke. Before the web, the lack of info created more opportunities for those careful enough to get the data offline. If there are any reliable (and exclusively) offline penny newsletters still published you can check out, and you stuck with buying the lowest initial offering price, you might be able to do okay following the "sell off 50% once it doubles" tactic.
it's a very sticky money making opportunity... it seems great when you just buy it and stock shoots up (duh, initial offering) so then you're like, allright - let's sell and make some money! Unfortunately that's everyones plan, so by the time you actually do get to sell it you're pretty lucky to make any decent money at all
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