Comments on: Has anyone here ever made consistent gain in penny stocks?

By: Matt G

Matt G — Thu, 30 Apr 2009 19:36:59 +0000

I'm a professional trader and I wouldn't even waste my time looking at penny stocks. It's a lottery ticket at best. Sure there are a few people who win every so often, but ask them how much money they've lost and how much is in their account. You will not find a millionaire investor who made his money in a penny stock. Guys like Warren Buffett wouldn't dream of buying a penny stock, so why would you?
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By: Tom Dereck

Tom Dereck — Thu, 30 Apr 2009 19:26:59 +0000

In the stock market its always possible to watch certain penny stocks go up between 10% and 70% within a few hours or days. And even when you can see stock traders that make $5000 on a single trade, it is also not unusual to see beginner investors lose a great deal of money because of a series of unwise decisions.

The problem is that if you don't know how to choose among stocks & how to properly approach them you could end up wasting money instead of increasing your profits. You can't just trade stocks like if you where gambling in Vegas.

Fortunately some websites on the internet can show you how to use effective and proven stock trading strategies. One of those sites that can show you how to take advantage of hot stocks using simple to understand and apply momentum trading strategies is http://www.MomentumStockPick.com

Visit them today & discover how to profit in the stock market by picking momentum stock trading opportunities in an effective way every week.
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By: Common Sense

Common Sense — Thu, 30 Apr 2009 19:19:59 +0000

Stock brokers do very well when you trade penny stocks.

The number one mistake of new investors is getting involved in penny stocks. This should be after years of investing experience. I must tell you though…… most professionals won't go near them (hopefully that tells you something).

The number one draw is that penny stocks are cheap and a small move can mean a large percentage gain. Real success in the market involves lots of small gains not big ones. The typical experienced trader tries for many small gains. Their number one goal is to reduce risk & loss.

Do yourself a major favor. Read a few books on investing and trading. Don't pick books from "media" gurus. Start off with the "dummy" series and work your way on to others. Read at least one (or 2) books on the psychology of trading. If you don't….. all the rest can be a waste of time.
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By: tm_tech32

tm_tech32 — Thu, 30 Apr 2009 18:54:59 +0000

I love penny stocks, been trading them for years.

The textbook definition is under $5 but I don't buy that.

I won't call it a penny stock unless it is under $2 and even then they are barely. Under $1 is where it is really at (true penny stocks), I have traded stocks trading at less the 1 cent.

It is all great fun, win some, lose some but overall I am winning so far.

But the warnings are valid, penny stocks (particularly true penny stocks) are volatile and are full of unexpected (to a newbie) dangers and pittfalls. So only use money you can afford to lose… and never on margin.

There are several rules I have developed over the years that have made me more successful at this type of trading.

I will give you number 1

Take what you can get, while you can get it.

Good luck and have fun.
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By: Palms

Palms — Thu, 30 Apr 2009 18:07:59 +0000

Nah... highly unregulated companies. You never can really know what your getting. Also likely to be very illquid should they rise, so you'd have a hard time getting out of the shares.
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By: Ann

Ann — Thu, 30 Apr 2009 17:35:59 +0000

Penny stocks are and extremely volatile investment, which are stocks priced at $5 or less. Penny stocks by nature of what they are not consistent. If you want to invest in penny stocks I suggest you only put a small amount in your portfolio. The best way to avoid risk is to diversify your portfolio.
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