I started investing in penny stocks half a year ago and just made my first 357 percent profit through diversification. I started with 500 bucks and now can afford to move to a higher minimum balance brokerage company (previously low trades). I read no books other than Rich Dad Poor Dad and the Covey books. I’m 23 and can take risks with pieces of money here and there. Why discourage it for the young who have low amounts to start with and can take risks? I bought what I researched through new upcoming companies and ideas. I didn’t see any growth in blue chip trades with the hit on commission, per trade take away, and high minimum balances. I feel like the people discouraging it are all brokers or something. Thanks to you all who were supportive with my questions.
Most of those down on investing in penny stocks are that way either because they believe media hype, have lost a lot of money on pennies or lack tools for them to evaluate the GOOD from the BAD/UGLY.
You are still relatively new at it but hopefully you are learning FA and TA skills to make your life more predictable/easier. As long as you diversify your holdings and don’t pick random losers and get out before things turn ugly, accepting the occasional small loss and having to tools to milk the long run. You should do fine.
Don’t brag about it…this sounds a bit like brag…If you have not experienced bad times yet….plan for it. There is nothing like a 2008/2009 situation where everything you touch goes bad, to teach you a life lesson. If you prepare for such an event then it dulls the pain.
Above all, analyze each failure to figure out why it went bad…Frankly you learn more from failure than you do from success if you do it right.
“Why discourage it for the young who have low amounts to start with and can take risks?”
Because 90% of those young people do not understand how to invest their money….they have little or no method and trade scared…getting in and out strictly on Buzz…a recipe for disaster. If you dedicate yourself to this as a business and upgrade your skills…you can do well.