Penny Stocks

[TheAceFace]

Do any of you guy's invest in the above.

What advice, apart from don't do it would you give somebody who is looking to get started in it.

Any stories you would like to share and which brokers would you recommend? Im new to this stuff and just looking for a bit of guidence really

Ace

[hustlehouse]

Is not about don't do it. Is always about HOW YOU WANT TO DO IT? Online trading, broker, bank etc.......

No advise there but you are better off with a decent broker and some not that penny stocks. try wind, solar some gold maybe.

Just my thoughts.

[hhgz]

The vast majority of penny stocks - regardless if they are for alternative energy, gold, or technology - only make money for the company or broker that sells the stock.

[TheAceFace]

Thanks for the replies guy's

In simple terms, what I am looking for is a broker or trader (both of which I know nothing about), to be able to assist me with purchasing of some shares. I am not looking to invest a lot, I just want to test the water, with money that I can afford to lose....if it goes T!ts up I will not cry about it, I am not looking to make a quick buck, I will keep the shares for a long time, or until they (if) go up and I can sell them for a profit.

Typical scenario I am after:

I see some shares I want. Call the broker.

Me: Can you get me these shares

Mr Broker: Yes sure

Me: Heres the money

Mr Broker: Thanks.

Me: I will be intouch when I want to sell, Bye

Mr Broker: Ok bye

In simple terms. Say I buy some shares for 1$ or pound, say a 1000 and in 2 years they sell for 10$....thats 10000Gs correct?

How much would a broker charge me for his or her service, firstly in buying the stock and secondly in selling them for me?

Can anybody recommend a reputable person / company to deal with?

Cheers

Ace

[TheAceFace]

Surely someone on here can advise? if not in the thread then PM will do.

[trd]

When you want to sell these penny stocks what makes you think you will find a buyer?

[ericthai]

I dont trade in stocks myself, but my brother uses a website called etrade, you can google it.

Not sure if they offer penny stocks, but I know you can buy for as low at $10. I think the fees are low something like $1 or less per trade something like that. It's like you said, you decide what you want to buy and when you want to sell. My brother has done good with this. Same thing like you nothing serious a few Thousand, if he lost it no big deal. He thinks of it same as betting on a game, if he wins ok, he loses well he chose the wrong the team.

If need more info or something PM me.

Hope this helps... Good luck!!

[William Osborne]

why don't you want to buy 'normal' stocks ?? penny stocks are a lottery...

these days you don't need a broker... I use Internaxx which is a online brokerage based in Luxumburg.

[TheAceFace]

Thanks Guy's

I will check out the suggestions as above.

Ace

[PoeDogg]

I use Interactive Brokers....the fees that I am charged for trading stocks averages about $2-$3 USD.

Very good service and execution of orders.

Their platform takes some time to get use to, but don't let it intimidate you.

If you have a question on how to do something, just send a message to them and they will respond quickly with instructions.

Interactive Brokers (IB) was able to get me away from TD Ameritrade where I was a customer for 9 years....no other broker that I tested was able to do that.

I recommend NOT using Zecco!

Also, I recommend not trading "Penny Stocks"; they really are a gamble.

I had a friend that talked me into trading STEM years back....got burned quiet a few times....but, I was just starting to trade stocks and really had no idea as to what in the hel_l I was doing (except for WANTING to make money, but the market does not run on wishes).

I am reading a book right now called "Market Wizards" and one of the multi-millionaire traders being interviewed (who started with very little) summed up penny stocks very wisely....they are at that price range for a reason!

And, what sounds good in theory usually does not pan out in reality.

Yes, if ABC goes up X/per share you can make 10K…..

But what if it drops to half of the price that you bought it at?

Would you:

A. Have the stomach to hit the sell button and take the loss.

B. “Double Down” (buy twice as many shares) so that you could possibly recoup your loss and break even with just a 25% increase in share price?

C. Just wait longer to see if the share price ever goes back to at least break even, much less a profit. If so, how long would you wait?

What I’m getting at is that emotions come out to play when you are looking at your actual money, or the decline of.

Now, I won't touch anything under $2USD and usually don't bother with anything under $10USD unless it has a really good setup.

There is a method (lots of them actually) to this mayhem called the stock market, so don’t just throw your money down the wishing well!

Also, STUDY, STUDY, STUDY! Most of the info you need is on the internet for free.

Don’t get suckered in to spending money on BS investment secrets, webinars, etc.

Are you planning on trading U.S. stocks?

[TheAceFace]

I use Interactive Brokers....the fees that I am charged for trading stocks averages about $2-$3 USD.

Very good service and execution of orders.

Their platform takes some time to get use to, but don't let it intimidate you.

If you have a question on how to do something, just send a message to them and they will respond quickly with instructions.

Interactive Brokers (IB) was able to get me away from TD Ameritrade where I was a customer for 9 years....no other broker that I tested was able to do that.

I recommend NOT using Zecco!

Also, I recommend not trading "Penny Stocks"; they really are a gamble.

I had a friend that talked me into trading STEM years back....got burned quiet a few times....but, I was just starting to trade stocks and really had no idea as to what in the hel_l I was doing (except for WANTING to make money, but the market does not run on wishes).

I am reading a book right now called "Market Wizards" and one of the multi-millionaire traders being interviewed (who started with very little) summed up penny stocks very wisely....they are at that price range for a reason!

And, what sounds good in theory usually does not pan out in reality.

Yes, if ABC goes up X/per share you can make 10K…..

But what if it drops to half of the price that you bought it at?

Would you:

A. Have the stomach to hit the sell button and take the loss.

B. “Double Down” (buy twice as many shares) so that you could possibly recoup your loss and break even with just a 25% increase in share price?

C. Just wait longer to see if the share price ever goes back to at least break even, much less a profit. If so, how long would you wait?

What I’m getting at is that emotions come out to play when you are looking at your actual money, or the decline of.

Now, I won't touch anything under $2USD and usually don't bother with anything under $10USD unless it has a really good setup.

There is a method (lots of them actually) to this mayhem called the stock market, so don’t just throw your money down the wishing well!

Also, STUDY, STUDY, STUDY! Most of the info you need is on the internet for free.

Don’t get suckered in to spending money on BS investment secrets, webinars, etc.

Are you planning on trading U.S. stocks?

Thanks for the reply buddy, good advice.

Not sure what stocks I will trade, as I said Im just looking at ideas, I know its a gamble but I will be going into this with small money and just see whats happens. Test the water so to speak.

[Orion76]

Why do you want to trade penny stocks? They are priced in pennies for a reason, they belong to worthless debt ridden companies that are highly unlikely to ever make a come back.

You are an absolute beginner, and penny stocks are by far the riskiest type of stock you can invest in. It's really the last thing you should try as your first investment.

If you want to invest in stocks I recommend you either start with blue chips, or otherwise go to Las Vegas and at least enjoy yourself while losing your money. Vegas has better odds than penny stocks too.

[Stumbo]

My brother buys some of those, after the crash there were more of them. He researched the companies to check their fundamentals first, he did quite well from them. Even a lemon wasn't much of a loss anyway. If don't know how to trade find a mob that appeals to your sense of where things are going, you can subscribe and get their tips.

Don't want to pay and want to trade US/Canada, try Grandich blog, he gives a free portfolio, good success rate.

[Abrak]

Penny stocks can offer good returns but it is important to understand the dynamics. Historic evidence (which of course is no indicator of future performance) indicates that penny stocks issued, as penny stocks at IPO (anything below US$5 per share) offer greater than average performance on the first day of listing but significant 'underperformance' subsequently. This has been subject to both stock exchange enquiries in the US and UK. Essentially it would seem that 'good' companies are ill-advised to issue stock as at a penny price.

Not much work has been done on the performance of those companies that say used to be US$100 a share and are now US$3 a share, so they should be distinguished from this comparison. Essentially though the historic evidence for penny stocks issued as penny stocks indicates that 'penny stocks are for dummies' rather than you need to look for a guide to 'penny stocks for dummies'. This made worse by the fact they tend to have above average spreads.

http://www.bowne.com/securitiesconnect/det...sp?storyID=1349

Some people argue that penny stocks are simply high beta. However much of the research is based on performance between 1990 and 2000, one of the best decades for the stock market. Buying penny stocks at IPO can be great but holding onto them the performance is so dismal that it cant be ignored.

As I say, many penny stocks do well, but it is also important to look at the average performance. Although historic performance is not necessarily a good indicator of future performance, penny stock newsletters sell themselves on that basis. So while you will find the internet littered with people claiming huge returns from a 'class' of stock that has continually underperformed, you should also bear in mind that the average fund manager cannot match returns in an index (say the Dow) based on its components.

[PCA]

Thanks for post this thread.Penny stocks can increase ones trading profits in spades with a lot less risk. One need to be able to do a quick scan of the thousands of penny stocks that there is in the market and knows which ones have the highest percentage of going up.

What a funny statement or do you really know?

[lannarebirth]

Penny Stock World, choose one.

This stock will skyrocket when:

1. The new investors come onboard.

2. After the next reverse split.

3. When the judgement is overturned on appeal.

4. When the bourse accepts our auditors credentials.

5. When the new samples are assayed.

6. When we get a new CEO/CFO to replace the guy who ran off with all the money.

7. When the upcoming news is released.