[mage lang="" source="flickr"]how to research penny stocks[/mage]
Penny stocks question… is it just too risky?
I see some stocks such as HTOG and IWWI, and they look, though really risky, like one could profit tremendously on them. I mean in two days you could double your money if you invested at the right times. I am wondering if anybody has advice about this:
1) where I can find some good, reputable stuff to research about these and other companies,
2) if you might buy these stocks, and
3) if you think there are any penny stocks out there that aren’t humongously risky and aren’t boiler room/pump and dump scams, and how to tell if a certain penny stock is indeed legit!
I would really appreciate any advice.
also, are sites like allpennystocks.com reputable or just hubs for scams? Where can one find a safe list of penny stock picks that aren’t scams!?
When you invest/trade in penny stock you should never put up more than you can afford to loose and you should assume you will loose it all. Unlike regular securities, penny stocks usually do not let you use risk cutting procedures (options and/or stop orders) since most are not traded in a regulated market place.
They say when you buy securities you have a 50%-50% chance of making money, when you buy penny stocks you have a 50-50-90% chance, 50-50 chance of making money and a 90% chance of loosing money.
When buying penny stocks, like any other security investment, you never invest 100% of you investing capital. Penny stocks are fun to trade, but you should never count on them to be considered part of your primary investment objectives.
Here are some reputuanle websites that you may find interesting
Most penny stocks are legit, it’s those that tout them or try to trade them that brings questions about their legitmacy.
Most experience traders won’t usually trade them, but it’s fun every once in awhile to take a shot but not a routing habit,
Where to Research Penny Stocks How To