How do you get started on penny stocks?

I know its risky but the pay off is good. I don't need a whole lot of money to start off with. I heard people starting off as little as 80 dollars and getting hundreds back.

So anyway. How do I get started? I got there basic questionsd.

Were can I purchase penny stocks. What a good place to do this? Preferable on the web.

Were can I get educated on such matters as penny stocks and anything associated with this.

Will you add me to contacts so i can ask for question possibly in the future.

Those my 3 basic question. You don't have to answer all of them to get best answer. Just need useful advice

Update:

@Jamoo

I am aware of paper currency one day being worthless.at least aware of people saying it. Gold very expensive. So i might go for silver.

Anyway, what about day trading. .

9 Answers

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  • 8 years ago
    Favorite Answer

    The payoff is seldom good. Usually they are scams and traps to steal your money. Most are manipulated via pump and dump schemes. A bunch of pumpers buy in, start touting the stock, you get suckered in, and then the company starts diluting the stock by issuing more and more shares (often into the tens of billions of shares) until your shares are literally worthless and unsellable.

    Most companies will claim to have a product in development, but it is all smoke and mirrors and the product will never materialize. Anyone who tells you these truths are labeled "bashers" by the pumpers, who act as your best pals until they vanish instantly when the dump begins, often within days of your purchase.

    You can buy them at any online brokerages. Most legitimate real-world brokerages refuse to even deal with them, because they are so manipulated.

    It would be very wise to read this first before going any farther:

    http://www.theinvestorsjournal.com/the-risk-of-pen...

    Honestly, you will make much more money buying stock in a real company. You might not quadruple your investment, but you won't do that with pennystocks either. Even 10 shares of an $80 stock will do better for you in the long run than 100,000 shares of a $0.008 stock.

    I'm not kidding about this.

    Source(s): Learned the hard way
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  • 4 years ago

    Despite their volatility, trading penny stocks can be extremely lucrative. Here are three ways that you can profit from investing in penny stocks https://tr.im/pennystocks

    The good news about penny stocks is that you can buy a good amount of shares without going broke. It’s thus easier to get a good stake in a company for less than you would pay for stock of a larger organization. To find a company that you feel confident investing in, make sure to do your research. Don’t just choose a company because you saw an article about it, or because your friend is investing in it.

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  • Anonymous
    8 years ago

    I think you may forget about this idea. They are a penny because they are worthless. At the moment, as never before in history, the value of all stocks in our financial markets are inflated to a numerical 'value' which is an illusion.

    I know gold may seem expensive at the moment, and you get a small amont for your money. But in the not too distant future we will not use dollars anymore and the value of gold will rise like a beachball underwater.

    Forget stocks- the stock markets are going to crash in the next 12 months. Look for gold 5g or 10g or 100g bars. Ideally, save up and buy an ounce if you can afford it.

    Why would you buy stocks anyway?- whenever you get any return it is in dollars, so you are only accumulating more depreciating money, making your gains in reality loses.

    Why do you think all world governments are buying gold? Most are also REFUSING to sell? You won't hear about tthis in the news, go get some.

    Source(s): This is reality.
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  • 8 years ago

    Regarding Day Trading (which is easier to make money in than Penny Stocks);

    You need the minimum required by your broker to start day trading.

    You'll need $25,000 in order not to be labeled a "pattern day trader".

    You'll need 3-5 years to learn how to day trade.

    You should dedicate 40-60 hours a week to the educational process.

    BTW: The vast majority that try day trading.... fail.

    And.... you said (with regard to penny stocks); "I heard people starting off as little as 80 dollars and getting hundreds back." I cannot begin to tell you how uniformed that statement makes you sound.

    The news on penny stocks is always suspect.

    The financial shape of most penny stock companies is horrible.

    No legit broker follows penny stocks.

    Here's some books to read regarding trading;

    http://joefahmy.com/2010/03/17/recommended-reading...

    http://www.chrisperruna.com/2010/01/10/2010-stock-...

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  • John
    Lv 7
    8 years ago

    Google penny stocks.

    Stocks arrive in the stock market as initial public offerings. Those prices are about $10 to $20 or so. Penny stocks have gone through that and lost almost everything. There is no probability that they will ever go up again. Best to find stocks that are on a steady multiyear upward trend.

    http://www.google.com/finance?q=NASDAQ:AAPL

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  • Anonymous
    8 years ago

    Just don't do anything with penny stock. You heard wrong.

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  • Anonymous
    5 years ago
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  • 8 years ago

    I'm pretty good with penny stocks email me at asmartermike@aol.com and ill help you out. i did alot of trading two years ago and did decent and i can explain all you need to know

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  • 3 years ago

    can someone tell me what is the right answer for this question?

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