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Penny stocks trading ,is it profitable or just a scam ?

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  • Anonymous
    1 month ago

    Penny stocks are garbage. There is a reason why they are pennies.

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  • Bryce
    Lv 7
    1 month ago

    Investing in penny stocks is a good way to lose your money.

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  • 1 month ago

    It can be profitable for some but its extremely risky and for every profitable penny stock there are 10 that go nowhere. Unless you really know what you are doing, I would suggest looking for other strategies.

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  • 1 month ago

     

    Penny stocks ARE NOT for newbies.  Only those with trading experience should consider trading in pennies since they understand the market, the risk and the problems associated with penny stocks.  

     

    Those with securities experience will tell you that you are foolish to start in the market by using penny stocks and those that are in business will tell you not to do it.    

    So with experienced investors/traders telling you not to do it, and those that are professional tell you not to do it, and even the Securities & Exchange will not recommend you do it, why do you think you can make any money. 

     

    Before you enter an order for penny stock, read what the SEC has published regarding penny stocks http://www.sec.gov/investor/pubs/microca… 

     

    The major firms on Wall Street do not and would not trade/invest in penny stocks,  

    Professional traders/investors do not and would not trade/invest in penny stocks, 

    Experienced traders/investors do not and would trade/invest in penny stocks,  

    Those that understand the markets do not and would not trade/invest in penny stocks,  

    The Federal Government prohibits broker/dealers from recommending penny stocks,  

    The Government tells brokers and the general public not to invest/trade penny stocks.  

     

    Only those with little or no experience in the market believe that penny stocks can be investment vehicles, they don’t know that the majority of penny stocks do not trade in a regulated market, nor do they know what a regulated market means, but that’s understandable since they nor do they know very little or nothing about how a real market operates and are gullible enough to believe whatever they read about such crap.  

    If Professional, & experienced insiders along with regulators do not think one should get involved with Penny Stocks, why do you, a newbie, think you should.   

    Source(s): from The Street
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  • A.J.
    Lv 7
    1 month ago

    Comparable to cryptocurrency trading, but more choices.  I live in Las Vegas and long term stock investor. There are risk levels in everything financial and it's all about risk levels and using information.

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  • 1 month ago

    Technically usually neither.  I is like lottery ticket rare a penny stock will pan out, and most are usually just businesses who failed or in the process of failing. A little while back after the 900th or so question on here about penny stocks I spent a day shifting through data to see if I could find an attractive penny stock.  I found one, boring company with no growth but actually reasonable financials, but with zero moat on its products.  I didn't invest. 

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  • 1 month ago

    You get better odds at the blackjack table.  

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  • DON W
    Lv 7
    1 month ago

    Some people make money, but most people lose heavily.  They are guessing that these almost worthless stocks might actually be worth something, at least to the point that someone will purchase them from you for more than you paid for them.  It's a gamble, rather than a true investment.

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