Why do most people lose in Penny Stocks?
I looked into a few penny stocks and i see that the ask and bid prices are huge differences. I look at the current price for example for one stock it was 0.04, the ASK was like 0.065 and the bid was like 0.03. Then i looked at it’s charts and i saw that particular stock doesn’t even reach the 0.06 price so it’s like the people who gamble with that stock may never win. Is this why penny stocks are so dangerous?Those stocks are swinging in the 0.008ish price. Is that why penny stocks are really gamble stocks?
That’s basically correct. The stocks are of low value because they are basically close to worthless to begin with. You make money on them only if you get lucky and choose one that does go up. I once tracked a stock that went in cycles from about three cents to nine cents and back on a fairly regular basis. I was tempted to put my income tax refund into purchase of the stock, and decided against it. In a week, it went from three cents a share to 93 cents a share.
Penny Stock Chart Exploding Example