Disciple asked in Business & FinanceInvesting · 1 decade ago

Does anyone invest in penny stocks?

Is there a high risk involved? Would you recommend investing in penny stocks? Thanks.

5 Answers

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  • 1 decade ago
    Best Answer

    Looking for the one or two penny stocks that will make you rich is a fools errand. Success in trading or investing in penny stocks is purely a question of money management/risk management. It's OK to lose on 60% of your postions as long as they're cut quickly while you let the winners run (always using stops).

    Is there high risk.... YES. Should a new invstor or trader do penny stocks.... NO!

    Education, money mangement (stops, limits, position sizing etc) and research are the way to go. READ READ READ.......

    Caution: All penny stocks you'll hear about have a great story. They're called "story stocks"....... they always sound like you've just found an incredible secret that will make you rich.

    Basing your investments on "story stocks" will, over time kill your account.

  • pank t
    Lv 4
    1 decade ago

    99% of them kill you. 1% make you rich. I was in SIRI for a while, got out recently, made good momey. Same thing with CTIC. Made 7 k with both. got in to them in early may, recently sold both. High risk, though. im down 30k overall on penny stocks, but im up overall-- first invested in the early 80s. I dont recommend them. basically, any money i make in the stock market i put into penny stocks, bc i want to get filthy rich and that is one of the few ways to do it. but i dont put money i need into penny stocks, thats dumb

  • Anonymous
    1 decade ago

    Most of them do not have good returns. However, penny stocks are often low cost and a good way to learn about the market without losing a fortune.

  • Anonymous
    1 decade ago

    you ask

    Is there a high risk involved? Would you recommend investing in penny stocks?

    YES there is VERY high risk involved NO, I would not recommend doing it.

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  • Anonymous
    1 decade ago

    Yes - gullible people. There is very high risk with penny stocks.

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