Comments on: The Risks of Penny Stocks

By: Katie

Katie — Fri, 30 Apr 2010 13:16:15 +0000

Investing in penny stocks can be detrimental because it's a market of high returns and also high risk. However, if you go through a reputable broker with a strong research department, they can do the homework for you and find the real gems with growth potential.

By: susan

susan — Wed, 17 Mar 2010 21:09:33 +0000

I just got in tuesday and two stocks are down one is up… I’m a little scared.
should I dump it all?

By: Kartik a

Kartik a — Fri, 18 Dec 2009 14:16:32 +0000

I learnt my lesson, sitting on a 10k loss. Thankyou for the article.

By: Richard Kurtz

Richard Kurtz — Sat, 04 Apr 2009 21:57:20 +0000

Wow, I can’t thank you enough for this article.

By: James Anthony

James Anthony — Thu, 02 Apr 2009 05:50:10 +0000

Wow, thank god for this article! I got an email last week with what looks like a “pump and dumper” scam you mentioned. Glad I didn’t invest yet because what you described sounds just like my email.

Thanks,

James

By: Adam Freedman

Adam Freedman — Sun, 13 Jan 2008 04:25:14 +0000

LOL. Yeah it is pretty funny when you are the only active shareholder in a penny stock in a given day.

The only good thing I can say about penny stocks is that trading them helps you build discipline. If you can handle the ups and downs of penny stocks, you can easily handle the day to day changes in the big board stocks.

By: J.D. Fournier

J.D. Fournier — Sun, 13 Jan 2008 02:01:14 +0000

Good warning. “Investing” in penny stocks is exactly like gambling at the casino. You can make money by letting it ride, but you have to be lucky and get out at the right time. When I first started seriously investing, I set aside some play money. This was after funding the 401(k). I used it to try some “penny stocks” that were around $1 or $2 a share. I also practiced buying options and selling covered calls with this money. This was back in 1998-2000 when things in the market were great. I actually made some decent money in the penny stocks, turning $2000 into $5000 after a few months, but then I stopped before losing. I never made big profits in the options game, and probably broke even. I used the money I made to buy an engagement ring. I played the “rolling stocks\” game (you can google that to learn more) with GTOS, I just looked it up now and it no longer is trading. The one fun thing is like you mentioned, the low volume. Some days, I was all or most of the volume and it was funny to see all of my trades reported to the world to see. Anyway now I practice and preach the long term buy and hold strategy using low price index funds in my own blog.

By: Anyone have experience with Penny Stocks? - Personal Development for Smart People Forums

Sun, 30 Sep 2007 23:16:45 +0000

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