[mage lang="" source="flickr"]50 cent penny stock[/mage]
Should I hold on to a flat lined penny stock?
I bought a pink sheet stock. Put up about $500-600 for my shares. It is obviously a pump&dump only I was on a cruise when they pumped it last and I missed my sell point. Well now it has been steady at a fraction of a cent for 2 months now and the value has depleted to near $50. Should I get rid of if or just hold?
A good thought on penny stocks for you would be to calculate the average daily volume on the stock and see how that translates dollar wise to your initial investment. If it’s lower than what you plan to invest then you’re in trouble. Most penny stocks have a liquidity of only $200 a day. That leaves room for a lot of broker manipulation.
The above web-site is a place you can go to find out what a company does and whether or not they have a balance sheet you can read (to find out assets and liabilities etc).
A cool head and steady hand helps take losses if that’s any consolation. I’ve been there, twice over.
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