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700794 No.700794 [Reply] [Original]

I am considering investing into penny stocks. Tell me why I shouldn't, tell me why I should.

Pro tips, advice, and opinions are wanted.

General penny stock thread.

>> No.700797

You shouldn't, because they're mostly scams that are thinly traded.

>> No.700801

>I am considering investing into penny stocks.
That's not how you spell gambling.

>> No.700804

>>700797
What about low caps? Like 1-3 dollar stocks on exchange sites, instead of pink sheets.

>>700801
Isn't playing with blue chips a gamble too? Just not as severe?

>> No.700808

>>700804
>low caps
Small cap stock (market cap of $300M+) is doable.
>isn't playing with blue chips a gamble too?
No.

>> No.700810

>>700794
Extremely volatile, only money to be made is in shorting and the possibility of loss when shorting stocks is infinite.

>> No.700812

>>700808
Alright I will consider blue chip then. Thanks Anon

>> No.700824

>>700812

most people get into penny stocks because they don't have the captial to make MEANINGFUL trades. buying three shares of AAPL and having it go up $5 in one day (which is amazing btw) will only net you $15. woo hoo.

have you considered options? they can leverage your money. so instead of buying 3 shares of AAPL you can buy an options contract and make much more if the stock goes your way. but you have a time limit, and time decay on the value of the option. so there is more risk than just buying outright.

>> No.700825

>>700794
You will lose all you're money. You are naive and most likely just recently discovered the stock market, and are now infatuated with the idea of such quick gains. You WILL lose.

I know this because I was the same way. I found them when I was 14, blew out my brokerage account by the time I was 15. I was a member of multiple forums where every member was just as lucky as me, except for our leader, who just so happened to be in league with all the major tip providers. Tim Sykes, XTreme Picks, Awesome Penny Stcoks, all of them are scams and the only thing they are good at is losing you momey.

Now you are going to think "I'll be the outlier, he doesn't know anything, anon's just a salty loser whoes jaded because of poor financial decisions in his mid-teens" and that's fine. But, you will lose. All your compatriots are old retards who fall for these things daily and people like yourself who probably followed a link from yahoo finance. Do not do it. Save your money and your time. Even Forex is better.

>> No.700828

>>700825
No I will take your advice, I believe you. And your right, I don't have capital for buy large shares of blue chip. I do want to get my foot in the door with the stock market though. Where do I go from here?

>> No.700833

>>700828
Well, honestly I'm only 18 still and only have like $4500 to my name. I'm looking at Forex and I used to llok at options. Those are pretty much the only way to make money with sub-$5000 for investment (I'm only really willing to use $1000 of mine).

The best strategy might just be to save and learn, maybe play some stock market games or something to get your foot in the door. I've looked through most strategies and such since then, and I recommend you do the same.

Sorry for bursting your bubble, I was pretty devastated when I lost my $650.

>> No.700840

>>700833

No its alright. I will probably keep watching the market and saving. Do some major research on various stock and invest smart. Thanks Anon.

>> No.700841

>>700828
How old are you btw? Here's the best forex thread ever to grace /biz/ to get the creative juices flowing https://archive.moe/biz/thread/338386/#339702

>> No.700847

>>700841
To be honest I'm seventeen. And thanks.

>> No.700860

>>700847
Good to get started early my nigga. Good luck.

>> No.700929

Bump . I'm 18 and have 8000 to my name. Wondering how much I should invest to make it worthwhile. I'm in school btw

>> No.700943

Honestly I doubt you'd be able to do more than making guesses. Penny stocks are so volitile and so easily manipulated by big block traders that it can destroy smaller investors. If you really must get into trading, blue chips are probably better for their (relative) stability. Maybe move onto penny stocks later once you have a better grounding for the technical work and have some more experience.

>> No.700948

Penny stocks represent or, or more, of three things

>Pump and dumps
>failing companies
>Start ups

You need insider information to make the first one work, the second one is unwinnable, and the third is pure gambling

>> No.700986

Invest in your own knowledge and skills, so you can get a job with enough income to actually invest. My salary is only about 48k/year before taxes and sometimes I still feel like I don't have much capital at all. A few grand is basically nothing.

>> No.700991

>>700794
Advice? Use Robinhood, because when you fuck up, at least commissions won't fuck you over.

>> No.701004

Don't listen to these retards.

Short sell penny stocks. It's as close to guaranteed money as you can get.

>> No.701054

>>700847
some honest advice. Basic knowledge you need to invest wisely.
- Accounting- know this, this is the language of business. Accounting will tell you if a company is a piece of crap, or a good buy.

Recommended books
-Morningstars: 5 rules to stock investing by patrick dorsey.

The above book is nice comprehensive guide. After you read that, you can expand to other books. The book basically teaches you want to look for, and how to invest, not speculate.

For right now, stay away from everything except for high quality index funds.

>> No.701105

>>700986
gotta crawl before walk. Invest what you can.