Penny stock investing...is this a good idea?
I follow a lot of different stocks, some obscure ones. But anyway what if I were to, for example on a whim, buy about 100,000 shares of green gold ray energies stock (GRYE) for $0.05 a share for $5,000 total. Hold onto it for a year and some change to avoid the short term capital gains tax, and sell all my shares at some point in the future when the stock price is significantly higher, say $0.50 or more.
I know the point of investing is to diversify, "stay in it for the long run", etc... But would this be a decent idea? Keep in mind, I have no need for all $7,000 of my money at this point in time, and probably won't until I graduate in about 2 years. I suppose I could start saving for retirement now, or do many more intelligent things with my money...but I just want to know if this would work!