1. Illiquidity.
2. Trades of ￡100+ worth of stock can send the price soaring.
3. Large spreads can wipe out most of any apparent gain.
A fool and his money are soon parted
A true penny stock is for a very small company (there are some large companies that have stocks that cost pence- but these are not true penny stocks)
These stocks are not freely traded on the stock markey but are on a matched bargain arrangement
This means that if you want to buy say 1000 stocks the stock broker has to look around for somebody to sell 1000 stocks
They can be difficult to find
Simililarly if you want to sell 1000 they have to look around for somebody who wants to buy 1000
Result is- the difference between the selling price and buying price can be HUGE (say 50%)
so in this case the stock has to rise by more than 50% for you to even break even
(you can ignore the stock price quoted- this is the last price the stock was bought/sold for and could be years ago)
You can read as many books as you like but under NO circumstances should you even consider penny stocks unless you want to throw your 2000 away.
(think about it-
If you knew the secret of investing in penny stocks and making money which would you do
1) write a book about it?- or
2) make use of your secret - invest in penny stocks and make a fortune?
NEVER believe any book that claims it can reveal a secret.in making money
If they knew the secret they would be making use of it- not telling others what it is
Read Jim Cramer Books and watch Mad Money
Diversify stocks, do your research, buy low sell high
Penny stocks, also known as cent stocks in some countries, are common shares of small public companies that trade at low prices per share. They are notoriously risky but if you follow a special method I've learned you can earn good money at almost no risk. This is the site I use: http://pennystocks.toptips.org
I definitely recommend subscribing to this site in particular. Very good research, quality stocks. I was a bit weary of penny stocks from all the bad hype they receive but this guy is pretty legit. He's put my mind at ease with a lot of the fears I've had. I especially like that he doesn't send out announcements left and right. I've signed up for other websites that fill my in-box with one company after the other. I don't know where to even start with so many choices in front of me! Nathan sends me one idea a week and that's all I need. Working so many hours during the week leaves me with very little time when I get home to start doing tons of penny stock research. I'm always eager to see what Nathan's next suggestion is each Friday and I love having time on the weekend to do my research.
As said above if you want to make money with penny stocks you have to follow some proven methods. This one in my opinion is the best: http://pennystocks.toptips.org
Hey, I'm 16 and live with my parents making me financialy stable. I have a job and have saved you ￡2000. I want to start penny stocks soon but would like to read 20 or so books to secure a strong knowledge and understanding on it. What books should I read and do you have any tips on where to start
