Posted by: Khairey January 29, 2014
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@lopchandai >> There was an article on CNN about this guy who became a millionaire by investing in penny stocks.
- Yes, I read that article. That was like "single mom earned 6000$ per week working from home" kind of article. He made million dollar crushing millions of other novice investors. But the clue is he won by understanding people's sentiments and analyzing technicals. Penny stocks are never for those except for people who makes living trading penny stocks.
AAMRQ: It is easier to tell how great the stock is looking at the past performance. But AAMRQ at one point priced at 36 cent was a right price at that time. Emerging out of bankruptcy for a company is quite exception, is what I am hearing about American Airlines. Nevertheless, I traded AAMRQ couple of times and made huge return.
I would say if you are throwing couple of hundred dollars and wait on profit for partying then penny stocks are great. Also, helps you understand the volatility of stocks. Even great is with any stocks you will learn many new things just for the sake of money. I spent so many days and hours learning about cancer drugs and treatment while trading ARIA which I had absolutely no idea before. But, if you are into stocks as a value investor then always go for mid or large cap company.
Also, I think trading "options" are much better than trading penny stocks, at least you can concentrate on few companies and don't have to dig out too details on thousands of penny stock companies out there. Buying "puts" you can earn several hundred percentage even when the stocks goes down. Its all about your ability to predict price in couple of weeks or months. But it is more like a bet than investment where you have 50% chance of winning or loosing. This is a trade where you will understand time value of money, and importance of timely decision. You will be surprised with the time and effort you put yourself studying and thinking just for the sake of money. Well, my suggestions applies to novice who come here looking for trading stock. But I can gladly take f-off from you guys who I think are quite champions on trading stocks.
- Yes, I read that article. That was like "single mom earned 6000$ per week working from home" kind of article. He made million dollar crushing millions of other novice investors. But the clue is he won by understanding people's sentiments and analyzing technicals. Penny stocks are never for those except for people who makes living trading penny stocks.
AAMRQ: It is easier to tell how great the stock is looking at the past performance. But AAMRQ at one point priced at 36 cent was a right price at that time. Emerging out of bankruptcy for a company is quite exception, is what I am hearing about American Airlines. Nevertheless, I traded AAMRQ couple of times and made huge return.
I would say if you are throwing couple of hundred dollars and wait on profit for partying then penny stocks are great. Also, helps you understand the volatility of stocks. Even great is with any stocks you will learn many new things just for the sake of money. I spent so many days and hours learning about cancer drugs and treatment while trading ARIA which I had absolutely no idea before. But, if you are into stocks as a value investor then always go for mid or large cap company.
Also, I think trading "options" are much better than trading penny stocks, at least you can concentrate on few companies and don't have to dig out too details on thousands of penny stock companies out there. Buying "puts" you can earn several hundred percentage even when the stocks goes down. Its all about your ability to predict price in couple of weeks or months. But it is more like a bet than investment where you have 50% chance of winning or loosing. This is a trade where you will understand time value of money, and importance of timely decision. You will be surprised with the time and effort you put yourself studying and thinking just for the sake of money. Well, my suggestions applies to novice who come here looking for trading stock. But I can gladly take f-off from you guys who I think are quite champions on trading stocks.