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Topic: why penny stocks?

tasharruf
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posted

I am fairly new to the stock market game. Started in oct 2003 to be exact. Have 50% of my portfolio in non-penny while the other of course is in here.
I am just wondering if you guys all as well have similar strategies or you prefer to have all of your potfolio in penny land and if so why would you rather consider or prefer only playing penny stocks?

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poorman
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posted

quote:
Originally posted by tasharruf:
I am fairly new to the stock market game. Started in oct 2003 to be exact. Have 50% of my portfolio in non-penny while the other of course is in here.
I am just wondering if you guys all as well have similar strategies or you prefer to have all of your potfolio in penny land and if so why would you rather consider or prefer only playing penny stocks?

I have way more than 50% of my money in large caps and funds. The money I have in penny's is more of a game for me than an investment. You can make huge money in penny's as the swings are large and fast( QBID is a good example up something like 2000% in the last 2 months and 100%+ swings just Tuesday)in the long run I could make way more money on penny's than large caps but with much greater risk. You will see some people that are putting tens of thousands of dollars in penny's but they must have more money than me or a much better risk to reward mind set. GOOD LUCK TRADING

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VNGNTN1
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posted

ME TOO
VAN

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Machiavelli
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posted

I'm about to open my account but i intend to only trade in penny stocks because of my limited capital.. lets face it you can get thousands of shares of several pennystocks with a $500 to $1000 bankroll then you can of mainstream stocks ($5 per share or more).. and with penny's it doesnt have to go up in price that high to make a very nice profit compared to mainstream stocks.. but once my account reaches a certain balance (say about $20,000 or more) then ill start trading mainstream stocks because ill have the buying power to get them in round lots and such... so much like you ill probably have 50% in mainstream and 50% in pennies.. but by no means will i be a investor (holding stocks for retirement for long periods of times).. my goal is to be a trader only... anyways thats my thoughts on the subject.. one last thought is no matter whether pennies or mainstream stocks.. do not enter the game on pure instinct or "tips" .. learn all you can and do you own research and DD ....

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BigT1
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I started with less than $1000 dollars so bought some pennystock and was hooked. Over last year and 3 months have had some ups and downs (lately a few more downs) and after putting a little more than $4000 into stocks have built it to over $30,000. It is next to impossable to do that in regular stock. Of course the downside is 3 weeks ago it was over $60,000 which shows the downside of pennystocks in that you can also go down quickly if not careful.

I always suggest Peter Lynches book ONE UP ON WALLSTREET to any new investor, because it is very addaptable.

Another good learning tool is Peter Leeds book just on pennystocks which is free on his sight pennystockinsider dot com. It is an excellent learning tool going over just about ever aspect of trading pennystocks including fundimental and technical methods. Leeds does have service which costs and is better if trading in the $2 to $5 range as that is where majority of picks are.

Anyway I plan on staying in pennyland with at least a good portion of money even if portfolio becomes much larger.

[This message has been edited by BigT1 (edited May 13, 2004).]

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WWJD-thru-me
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I am mostly in pennies because the quick spikes are great for trading. I have made 2000% returns on about 6 or 7 stocks in the last year. It makes up for a lot of mistakes and I made plenty. I keep learning and think I can improve my ability to pick winners and not be a victim of the circling sharks. Know for real the waters are shark infested and they will pick you flesh (and bank account) clean if you stay in the water too long. There is so much to learn. These boards are a good place to start.
DD-GLTY-Debi

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