New to investing, penny stocks

Hello ATS,

I am a rookie trying to get into investing and want to learn as much as I can about penny stocks, as i dont have the capital at his point to get in with the "big boys", so to speak.

I would greatly appreciate it if someone could direct me to the right information, as it is all a bit jumbled just searching in google!

Do any members have any tips or tricks for me?

Thank you in advance!

As a securities regulator, I would tread carefully. I would stick with etfs and mutual funds. The website you should go to is OTC markets (www.otcmarkets.com...). They have a website with tons of information. Beware of those stocks with caveat emptor or stop symbols. Also, the SEC and FINRA have some good info on their websites. Let me know if you want more info.

originally posted by: PurpleFox
Hello ATS,

I am a rookie trying to get into investing and want to learn as much as I can about penny stocks, as i dont have the capital at his point to get in with the "big boys", so to speak.

I would greatly appreciate it if someone could direct me to the right information, as it is all a bit jumbled just searching in google!

Do any members have any tips or tricks for me?

Thank you in advance!

If you are starting here just to learn a bit about trading then no advice needed as you likely can't trade enough to even make it worth your time even if you pick well. Now, I have gotten lucky with them before and had some that made me quite a nice return.

That being said, trading is just like gambling or betting with different variables.

I would say look for an industry you think is going to be needed in the near future and put some money in multiple companies in that industry. If one goes up, once it reached the point where you have doubled or more what you out in, sell half to get back all you've spent and then let it ride to see what happens.

I have found that penny stocks aren't really worth the time as I get paid more per hour of my time than I've ever made from a penny stock and the time I took to research them.

a reply to: JSpader

Thank you JSpader! I will look into this as soon as i can and let you know!

Wait, you mean this isn't the top forums on the Interwebs for import auto tuner tips?

a reply to: PurpleFox

You should stay with stocks from established companies. If you make say, 15% on shares of stock, one stack is the same as a million. 15% is 15%, its not the number of shares you own its the money you invested.

I followed penny stocks, years ago. I found out that most companies have scam artists as executives and usually they are the only ones making any money since they can manipulate. They are very adept at following a fine line between fraud and staying legal.

Commodity options are good. I made $3800 off of an $800 #11 Sugar call option in a few days in 2006.

For the last few years, the only penny stocks I have that have increased in definite value have been Marijuana related stocks. All stocks I have related to metals, new industries, and so on are still worthless.

That doesn't mean that some day they wont be.

I think the MJ field will continue to increase in value as more states decide to legalize.

Penny stocks are like buying a lottery ticket. If you hit, the payoff could be big. But the odds are very, very long. Don't 'invest' more than you could afford to set on fire in the front yard.

Good luck.

Send me all your pennies, I'll 'invest them for you. No guarantees, though, the market can be volatile.

Since I hold your money, you have no say what I do with it, even if I lose it for you. (its in the contract)

The idea of penny stocks is to squeeze the last bit of wealth from the poorest class, and steal it too eventually.

How much of that 'evaporated' (got stolen) in 2008?

The same people that crashed it then are in charge.

originally posted by: IgnoranceIsntBlisss
Wait, you mean this isn't the top forums on the Interwebs for import auto tuner tips?

:crib:

lol, my favorite learning comes 'as seen on TV'. Infomercials are the best.

originally posted by: intrptr
The same people that crashed it then are in charge.

Great work, if you can get it.

Every time we invested in penny stocks we wound up losing the money. It always seemed to go up for about a year then something happened and we would lose everything. We lost about two grand on penny stocks overall, actually that and the three grand that it had gone up. If we would have sold it at the right time we would have made some good money, averaging about thirty percent or more a year. But we just figured, what the hell, it went up that much so we would keep it in. Then six months later it was gone.

a reply to: rickymouse

Pump and dump.

And no, that's not a laxative effect caused by weightlifting.

originally posted by: Fools
For the last few years, the only penny stocks I have that have increased in definite value have been Marijuana related stocks. All stocks I have related to metals, new industries, and so on are still worthless.

That doesn't mean that some day they wont be.

I think the MJ field will continue to increase in value as more states decide to legalize.

Yup. Penny stocks are like lottery tickets. A few years ago I got 3. One, I made about $100 on, the other two I'm waiting til I need a tax loss to sell. Being pennies, I didn't lose much, about $60 and $80.

It's gambling, do NOT buy unless you are "just playing around" and can afford to completely LOSE that money. There are decent stocks around with a price of $1 or $2 so even with a few hundred bucks you can get a decent position. I've done much better with stocks between $1 and $5 than with the penny stocks.

Never turn your back on them, ever.


If you are not careful you will be standing in line one fine day
waiting to cash out at a huge loss. Then, the worthless commodity
will be a permanent stain on your portfolio; perhaps they do this
as a reminder.

Also, Black Knight Securities will step in front of you in the line,
especially when they know it is avalanche time. For instance, during a plateau or downturn, you may have a sell
in at a good run up price. Don't be surprised when you find that sell orders at a
price slightly higher than your ask were met, and you were left holding an empty bag the next day. Brokers will NOT contest on your behalf, even though you have hard, irrefutable proof,
because they pretty much eschew penny stocks and the effect they have on day traders.

Volatility is what you are looking for and volatility is what you will get.
But you aren't an insider; you are just a mark. Know this, and proceed accordingly.

# 708

a reply to: PurpleFox

Stay away from penny stocks. The stock is worth 1 penny for a reason. It's a longshot product, at a poorly run company, and you're investing with much less information.

While you don't have the same potential to hit that winning lottery ticket that pays out at 1000:1 on your investment when you get it right, you're going to do much better on average if you stick with established companies. You don't necessarily need to buy stocks at $1000/share, there's plenty of good performing stocks with lower share prices.

The best information anyone can give you if you're looking to invest long term is to diversify. Putting 1% of your portfolio in any specific company is a pretty heavy commitment. The wider you go, the more you're going to mirror the general market.

The main role for penny stocks is if you want to be a day trader, who buys and sells over the shortterm, sometimes holding a stock for even minutes at a time. It's a full time job that requires a lot of research. But even then, penny stocks don't publish the same level of information so it's more of a learning experience than something to seriously persue.

originally posted by: rickymouse
Every time we invested in penny stocks we wound up losing the money. It always seemed to go up for about a year then something happened and we would lose everything. We lost about two grand on penny stocks overall, actually that and the three grand that it had gone up. If we would have sold it at the right time we would have made some good money, averaging about thirty percent or more a year. But we just figured, what the hell, it went up that much so we would keep it in. Then six months later it was gone.

In vegas they have dollar slots and penny machines too.

Thank you everyone for your contributions. I am interested mostly in the marijuana industry because that is what I know the most about!