In today’s episode I’m going to share with you the pros and cons of penny stocks.
Penny stocks are hugely attractive, and they are great for certain types of traders. But they’re horrible for other types of traders.
In this episode we’ll cover the advantages and disadvantages of penny stocks, so that way you can make a rational decision to see if penny stocks are right for you.
We’ll talk about things such as their low price, manipulation, getting delisted, regulation issues, risks related to penny stocks, and more.
Posted at: http://tradersfly.com/2015/02/pros-cons-penny-stocks/
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My friend made me cringe when he said he thought the federal government steps on once a stock goes below $5 so people don’t loose to much money. When I told him that
A not the way it works he said the government should step in. Wow!
I remember my first penny stock it funny but it a true story. I brought 400 shares of hmny and it went from 4.95 to 3.50 so I thought nothing of it because it went to $6.00 two weeks ago. so each day it was losing 5 cents and I thought nothing of it. But something strange happened. when I was in the airport bus line I saw a guy who looked like the coo for movie pass walking in the middle of the high way with a black suit on. I said to myself omg that guy look just like the coo from movie pass. But i kept the stock anyway I SOLD it at 2.00 right now it trading 0.01.
I always heard the opposite. Something that's cheap is NEVER good, according to the people I grew up listening to. They used to say "You get what you pay for," and Wal-Mart's cheap products have proven that statement right beyond all doubt. I'll never buy a damn thing from them again.
It's true that oftentimes cheap things are not durable or just don't last. But keep in mind we are at that point talking about things that depreciate with time. When you're looking at Investments you're looking for things to appreciate with time and grow in the future so if you buy things that are lower price than you're hoping that they appreciate in the future. Now yes higher price things are typically better in terms of quality but that also means that the price extension may be a little bit too far stretched when it comes to an investment so this is why people often like penny stocks it's because you're getting it at a lower value looking forward to appreciate in the future but in general yes cheap things are cheap for a reason
Why not learn to trade the bigger stocks now? Well just the simple face that it's too expensive. Once i make 1 million them i'll move to normal stocks. But penny stocks or even options is better for someone who doesn't have all that money to start with.
I am looking a stock cause of TSLA, it is ECS "COBALT". It was once $67per share in 1996, however it is now a penny stock at .89cent.... Would you say this stock is be more attractive than a new penny stock?
He reminds me of Eric, someone who was near & dear to my heart. Eric didn't have money at first & worked his butt off for everything he had and had "integrity" in business. It IS possible; they wouldn't teach 'business ethics' if it weren't possible at all. He worked for everything he had so he was grateful for it.
So I wasted four hours watching all of these TIMOTHY SYKES videos? I was pretty hyped. NOT with grand dreams of millions but it see like a good way to start with this 2k I can afford to work with. Anyway should I unsubscribe from him? (Chuckle)
Well that was my exact plan and he seemed like someone I could relate to....until I heard your take on it. I mean imagine it. I am a TOTALLY NEWBIE OUT THE WOMB so time for poison milk. Not even able to to tell which is which.Don't know if I need someone to relate to just need some one to be str8 up with the truth whether I can relate to them or not I CAN ALWAYS RELATE TO TRUTH!
Hey bro penny stocks are a potential way to make money. Make sure you do your research before investing, and remember only to invest what you can afford to lose. I would say build your account to about $500 - 1k and study in the mean time, before making your first investment. Good luck!
Don't laugh, MNST - Monster Energy Drink was a penny stock 16 years old under a dollar a share at 0.25 - today MNST trades at 153.54 6/12/2016. The Reward outweighs the risk! Everybody want to catch the train after it leaves the station. nobody wants to wait 2 hours to catch the express train!
You said the good majority of penny stocks that spike will sell back off after spiking. It seems like a good strategy to have would be to short almost all penny stocks that spikes since the majority of them fall shortly thereafter. Also this spiking and sell off, does this occur over 2 minutes? 5 minutes? an hour? a day?
ROFL he clearly doesnt know anyone who trades pennystocks 😂 And duh pennystocks are failing companies, but you're a freaking trader, not an investor. You ride spikes and dont hold for long periods of time.
And if you do research you know when a stock is getting pumped and can make a lot shorting it. And manipulation from large investors never works on pennystocks unless there are billions of shares (which there rarely are) Because as soon as you start selling your massive amounts of shares everyone will see huge selling asks and everyone will be selling and it will tank and you'll lose money since you cant get rid of your shares.
+TheMostRealDeal Ryan How to start doing research on companies?Do You start from google,and from watching the markets alone,or do You need something that will get You into the inner circle, or hiring professionals to do it for You?
+Ahlen Kikuchi if you want 10,000-100,000+ you can put 5,000-15,000+. But remember look at the history of the stock and how much debt it owes to the bank. If the debt is more then there "reserve" money then no doubt it will go bankrupt in a few years
. P.s start looking to the company called 'Corning' there really cool and have a potential of getting 1000-2000%+ in the next few years.
+Mustafa Ali Tim Sykes has been audited and hes on profit.ly that makes him completely transparent and legit if you're doubting him. On the other hand, many of his students are consistently making profits, and you cant lie on profit.ly, it tracks your trades and posts it. If he really only cared about money he could've chose not to teach and just buy all the stocks up that his students would be buying today and profit from it. Ive personally made a shitload of money by selling short on obvious pump and dumps. Pump and dumps are dangerous when you are completely clueless about it when you buy them, but its extremely profitable if you have identified it as a pump and dump.
Thanks for the comment. Yes, I can't agree more. The only thing that puzzles me on him, is that, why now he more concentrate more on teaching people when he can make more money by trading? He must be tired, I presumed and try to cash in on teaching instead. I stick to your methods and guidelines, its the best so far I even come across!
im a college student and i want to get into trading stocks, i want to start off trading with penny stocks just to see how the market works, how much money would i need to get started? Is there a lot of fees that have to be paid when trading a stock? I need advice
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