Jim W asked in Business & FinanceInvesting · 10 years ago

How to Invest into Penny Stock ?

I am new to stock market and know nothing about penny stock shares. Please let me know how to invest in penny stocks and what is the process for investment.

6 Answers

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  • 10 years ago
    Best Answer

    Before you actually jump into penny stock, you must first understand the benefits and drawbacks of investing in penny stocks. It is best to diversify your investment as far as penny stocks are concerned.

  • Anonymous
    10 years ago

    Penny stocks can be traded profitably, but they do require more skill to trade well than higher priced stocks. If you are new to trading/investing than you shouldn't be trading penny stocks.

    If you do decide to jump in anyhow be ready to lose 50% of your investment in one day. Penny stocks are very volatile, so part of the key to trading these is to trade a much smaller amount of your portfolio. If you risk too much on penny stocks you'll blow out your account very fast.

    This volatility though can lead to huge gains. I've seen penny stocks that have gone up more than 100% in a day. As I said though, you have to risk a very small amount of cash on these trades so that you don't blow out your account before you get a win.

    If you are new to trading on the stock market stay away from penny stocks until you can fairly reliably make money on higher priced and less volatile stocks.

  • Jerry
    Lv 7
    10 years ago

    Penny stocks are a ripoff. It is very rare for anyone to profit investing there. Invest your time in learning something before investing any money.

    If penny stocks are the best idea you have for investing, donate to a worthy charity instead.

  • Jeryl
    Lv 4
    4 years ago

    As a long time investor I will say yes IF you chose the correct ones since 99 out of 100 will take you for the 4,000. Your chances are about 1 in a 100 that it is a good company. Your stock would have to double every month for 8 straight months to reach your goal. IMPOSSIBLE.

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  • 10 years ago

    Buying a so-called penny stock is easy. All you need is a penny and a broker, like scottrade.

  • 10 years ago

    I recently started investing and I used the site below. The book that can be found on that page goes through every step of the process and greatly helped me. Check it out! Hope it helps,

    -Cristiano

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