Discussion in 'Stock Market' started by Nova78, Jan 17, 2012.
Are these just pump and dumps ,or can one make money with these?
Fools game but a Hell of a lot smarter than buying lottery tickets or betting on Giant Negroes killing each other over a brown watermelon with conical ends.
mainly pump and dumps, but you can find some diamonds in the rough.
just because a stock is less than a dollar doesnt mean it is cheap
I've spent 20 years in the investment business. I know of no one who has consistently done well in penny stocks.
i trade for a living. penny stocks are scams in the majority of cases
Pump and dump.
It's gaming almost.
So if one buys say $10,000 of a stock for 1 penny a stock and the stock goes to 10 cents ,I assume you would of made $90,000 dollars? So if it did say go up to this amount say in two days are there restrictions on selling penny stocks? Or can can you set -up a sell limit to automatically sell it when it reaches a certain amount?
You don't need to do well consistently. Find the new TASR, which went from a dollar to 100 a few years ago.
People mainly use servers with very high bandwidth and low delay connections to the stock exchange, and they have programs that will buy a stock at a certain price in volume, then sell it within a few seconds once it goes up a few cents.
First, lets get technical. A penny stock is any stock that is valued under a dollar. In this scenario not all penny stocks are bad. The very very cheap ones (under 10 cents) are companies that are in severe distress with little hope for survival. Typically they have already declared bankruptcy, even then the outlook is not good.
When you see advertisements for penny stocks, those are probably going to be scams. If your 1 cent stock goes up to 10 cents, GREAT! right? Well not exactly. One problem with very cheap penny stocks is there are actually very few investors for how many there are. Just because your stock now reads 10 cents doesn't mean you will be able to sell it. Many will see that it went from 1 cent to 10 cent without any good news being released from the company and think the profits are gone from it. Now you cannot sell it at all. All the while there is that looming presence that at any day your company will just close, and your stocks will be worth nothing.
edit: my point is that you can make money on those types of penny stocks. But you must come to grips with a few things first. One, you must accept that it is a scam and you have no moral problems with that. Two, you have to be willing to lose everything. Three, you must get out before the bubble bursts.
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