best tip i can give is this: stay away from that which you do not fully understand.
Companies whose stock has dropped to pennies are usually not earning money, owe a large debt and are on the verge of bankruptcy.
A very few may "turnaround" and again become profitable, but most actually become worthless.
For these stocks, a small change in price is actually a large percentage move and this volatility is what gamblers look for.
Penny stocks are frequently used in a scam called, "Pump and dump". This is a fraud that involves artificially inflating the price of an owned stock through false and misleading positive statements or other measures.
Once the operators of the scheme "dump" their overvalued shares, the price falls and investors lose their money.
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You can make money if you know what you are doing and lose everything if you don't. If you need to ask then they are not for you. You will be the mug that gives your money to the sharks. Invest your money in The Wolf of Wall Street!!!
don't bother if you do you will need wait until the next 50 years
Can you still make money on penny stocks? How would i get started? Anyone have any suggestions or tips?
