Have you ever invested on penny stocks?
October 31, 2008 by admin
Filed under Todays Watchlist
Have you ever invested on penny stocks?
2008-10-31 22:33:44
Is it true that the stocks that are so cheap (a couple cents only) have more chances of gaining hundreds of percentages in few days?
Is it better to invest on penny stocks or others?
It is true that stocks are so cheap (couple of cents only) are more likely gain of hundreds of percentages in a few days? It is better to invest in penny stocks or other?
It’s not the price that matters, but the exchange where the stock is traded. Normally when you hear warnings of penny stocks being fraudulent, they are talking about the Pink Sheets. Avoid them. Stick with stocks that trade on the NYSE, NASDAQ, or AMEX. The Pink Sheets stocks have hidden commissions (bid-ask spread) of up to 50% that go to the floor trader.
I knew a trader who specialized in pennies, and yes many stocks that are only a few cents “bounce” (as he called it) and make it possible for gigantic profits.
With leverage, gigantic profits can be made anywhere. Dow futures are $5 per point (and I think around a $2000 margin requirement but don’t quote me on that). A 500 point move and you have over 100% gains easy.
Start finding something that fits your style. If you can figure out where something is going, and have rules and refine your strategy so you don’t ***** it up, you will make a profit. Simple as that.
No, and I would never do it.