So why penny stocks you ask? Simple, the low cost of investments provides a nice way to learn more about the art of buying and selling, plus they can be fun and exciting if you’re able to pick a real winner that balloons 300%. Look at it like this, for a $1000 you can buy about 4 shares of Apple (AAPL) stock. The same $1000 could buy 100,000 shares of a stock trading at .01 (that’s a penny). Say that stock trading at .01 goes up 100% (which isn’t uncommon in Pennyland) to .02. You just made $1000. Not bad for something you can do in your underwear.
Of course, that’s not the norm, there are certainly opportunities to make decent money with the pennies. I know some traders that make between $3k and $10k each week doing this. But they have been at it for some time and have the experience to recognize trends and read charts, which most of us don’t have.
The biggest risk I see is getting stuck with a losing position or not being able to sell a position therefore tying up that investment money. At any rate I’m giving it a shot.
Do you or have you played the pennies game? If so, leave me a comment, I’d love to hear from you.
