Posted by: Kiddo January 17, 2014
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I see a lot of penny stocks related postings in Sajha these days. I used to partake in penny stocks trading and I no longer do it.
I appreciate that many of these posts do say that you should know what you are doing; but for a newbie wanting to get into stock market, those kinds of "warning" are absolutely not a deterrent. I want to caution that most of the penny stocks don't follow SEC guidelines on reporting as they are not required to do so. They are very subjective to manipulation (pump and dump) and you might make some money on one but you could easily lose it all on the other. Their swing is very high and unpredictable. So, if you are sitting on a pile of money that you don't care much about and want to take a risk, go for it. If you want to increase the wealth but can't let go all of it for the risk you are taking, then penny stock (OTC) is not the market for you. Traditional stocks (>$1, but I say more than $5), bonds, mutual funds are better.
I appreciate that many of these posts do say that you should know what you are doing; but for a newbie wanting to get into stock market, those kinds of "warning" are absolutely not a deterrent. I want to caution that most of the penny stocks don't follow SEC guidelines on reporting as they are not required to do so. They are very subjective to manipulation (pump and dump) and you might make some money on one but you could easily lose it all on the other. Their swing is very high and unpredictable. So, if you are sitting on a pile of money that you don't care much about and want to take a risk, go for it. If you want to increase the wealth but can't let go all of it for the risk you are taking, then penny stock (OTC) is not the market for you. Traditional stocks (>$1, but I say more than $5), bonds, mutual funds are better.