Are penny stocks good investments?
Too Cool For Me asked:
I had a friend buy 2000 shares of penny stocks in a medical supply company and made a lot of money. Are penny stocks good?
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I had a friend buy 2000 shares of penny stocks in a medical supply company and made a lot of money. Are penny stocks good?
April 9th, 2009 at 11:18 pm
If you find the sleepers, yes. There are are a lot of dogs out there.
April 11th, 2009 at 11:28 am
No. They are considered risky. If they were good they wouldn’t be penny stocks anymore.
April 11th, 2009 at 8:43 pm
They only for the pros to deal with. They are very risky because they are up and coming stocks and they get rise quickly, and fall even faster. Be careful with them.
April 13th, 2009 at 6:25 am
If and only if you can master the art of timing the market. I suggest you do all the possible research.
April 13th, 2009 at 4:25 pm
Obviously this one was. Let me know if you find out about any more such stocks.
April 14th, 2009 at 8:43 pm
It depends completely on each induvidual stock…..Take for example the Bre-x troubles in Canada. It was a penny stock which jumped to more than 200 dollars in a few months. But sadly, once the realization that there was no gold came about, it was reduced to zero. The moral:if you have invested and bailed out at the right time, you could have made fortunes, but most didn’t realize that the end was in sight before it shot them in the face.
Overall, penny stocks are risky because they rise and fall like the tides, if you are willing to take the risk or believe that there is a particular stock that will be rising drastically in the near future, go for it….but beware of what you can lose.
April 18th, 2009 at 5:58 am
I had a classmate that was big on them and tried to get everyone to use them. I personally don’t use the stock market because I don’t trust other people when it comes to my money.
April 18th, 2009 at 2:58 pm
if you choose the right one, yes.
April 19th, 2009 at 11:15 pm
Generally no. Penny stocks are subject to market manipulation, buy oil!
April 21st, 2009 at 3:07 pm
Since you gave a positive example to your own question I think you have a bias toward “yes.” #1 You need to ask your friend how they did it, when life presents you with a model for success you need to jump on it #2 Typically with penney stocks you need to have a lot of patience…it can take a long time before it breaks out and really runs, unlike options for instance where you can turn a sizeable profit within a day #3 as a group they are no worse or no better then any other group of stocks, mutual funds, real estate, fine art, etc…. with the right amount of research in whichever investments you make, your chances for success increase. A friend of ours researched a tiny oil company Petro Kazikstan which eventually got bought out, making her a millionaire. I thought I found a similar one in XsunX (won Tech Award for inventing a solar window) but it’s been nothing more then a trading vehicle, so far–while it hasn’t rocketted skyward, by studying it’s up and down trends I’ve still made money…point here is you can usually make money on any investment as long as you study it long/deep enough.