Penny Stocks

[Nova78]

Are these just pump and dumps ,or can one make money with these?

 

[Douger]

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.

 

[jaybags]

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

 

[Toro]

Are these just pump and dumps ,or can one make money with these?

I've spent 20 years in the investment business. I know of no one who has consistently done well in penny stocks.

 

[rdking647]

i trade for a living. penny stocks are scams in the majority of cases

 

[Sallow]

Are these just pump and dumps ,or can one make money with these?

Pump and dump.

It's gaming almost.

 

[Nova78]

i trade for a living. penny stocks are scams in the majority of cases

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?

 

[Rocko]

Are these just pump and dumps ,or can one make money with these?

I've spent 20 years in the investment business. I know of no one who has consistently done well in penny stocks.

You don't need to do well consistently. Find the new TASR, which went from a dollar to 100 a few years ago.

 

[theHawk]

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.

 

[Middleoftheroad]

i trade for a living. penny stocks are scams in the majority of cases

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?

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.

 

[waltky]

What goes up must come down...

Stocks' correction coming? Not that again
18 Mar.`12 - Investors are beginning to wonder if this "Energizer Bunny" of a rally can just keep going without taking a break or a fall.

Every Friday for the past couple of months, the question has hung in the back of investors' minds: Is the stock market's rally strong enough to continue without a correction? Even with the S&P 500 above levels unseen since before the financial crisis, the answer remains: Yes. The broad market index broke through 1,400 -- a psychologically important level -- for the first time in four years last week. On Friday, the S&P 500 closed at 1,404.17, its highest since May 20, 2008. At Friday's close, the index was up for nine out of the past 10 weeks.

The rally has taken the Nasdaq up to a 12-year recovery high, while it lifted the Dow <.DJI> comfortably above 13,000 to its highest level since December 2007. "We are seeing this unbelievable rally in the market and yet the market is unbelievably complacent. We haven't been this bullish for a long time," said Randy Frederick, director of trading and derivatives at the Schwab Center for Financial Research, based in Austin, Texas.

Indeed, the CBOE Volatility Index or VIX <.VIX>, Wall Street's fear gauge, plunged to a five-year low despite the S&P 500's stunning gain of 12 percent for the year so far. The VIX measures the expected volatility in the S&P 500 index over the next 30 days and generally moves in the opposite direction of the broad market. Investors often use VIX options and futures as a hedge against a market decline.

Frederick said the only concern is the wide spread between second- and third-month VIX futures, suggesting a rise in volatility in the longer term. But the front-month futures that expire this week have come down to levels near the spot VIX. The VIX fell 6.2 percent on Friday to end at 14.47, its lowest close since June 2007. "I would like to see the VIX around 17 just because it tends to have a significant pop when there is bad news at current levels," Frederick said, adding that "frankly" there isn't that much negative news out there.

STRENGTH IN MIDCAPS

 

[TheGreatGatsby]

I've lost significant money on penny stocks. My experience has been that they are on their way towards bankruptcy. But then again back when I analyzed, I saw many penny stocks that paid off.

If you're looking for potential big pay outs with limited investment while trying to minimize risk I'd look into the $1-$10 stocks.

 

[editec]

I'll tell you the pennies to stock up on....pre 1981 pennies.

They're 95% copper

 

[LogikAndReazon]

Are these just pump and dumps ,or can one make money with these?

I've spent 20 years in the investment business. I know of no one who has consistently done well in penny stocks.

the only people who have done consistently well are the people who market and sell them..........

 

[Paulie]

If you're going to trade penny stocks at least do yourself a favor and only trade the companies who are listed OTCQB or OTCQX at www.otcmarkets.com

That's your best bet as you get full SEC-reported transparency.

That doesn't mean there aren't some diamonds in the rough in the Pinks category. I've made some money on them in the past.