David asked:
I have been trading in penny stocks for about three months now, and performing fairly nicely, but i have lately entered the really high risk end of the penny stock marketplace and was questioning what you have all done on these stocks in the past? purchase and hold? day trade? what?
link to one of mine
http://www.google.com/finance?q=OTC:ADSV
December 9th, 2009 at 12:12 pm
I think if you keep playing in worthless stocks you will have an education coming to you.
As for this stock, they are losing $4.85 a share and they have less than 1 cent in equity. This math should clue in most investors.
Avoid.
Some links to prev penny stock questions.
December 11th, 2009 at 4:08 am
In a word, Risky.
When the market is trending up, it’s fairly easy to make some quick profits. But when the market is correcting, you can get hit pretty hard just as easily.
Buy & Hold if you think the underlying company is solid with a good future.
tips on investing in penny stocks:
December 14th, 2009 at 6:37 am
The bigger a risk, the bigger a pay-off….or loss in the world of finance.
The upside of buying penny stocks is that it won’t cost you an arm and a leg to enter the stock market. If you should make a bad choice, I hope you were wise enough to diversify….buying some energy stocks, auto, retail, etc.
I think penny stock trading is a great way for the little guy to make some money. I wish I had bought Ford while it was a penny stock. In the current market, I think buying CERTAIN penny stocks will yield big payoffs.
December 14th, 2009 at 11:36 am
When you invest/trade in penny stock you should never put up more than you can afford to loose and you should assume you will loose it all. Unlike regular securities, penny stocks usually do not let you use risk cutting procedures (options and/or stop orders) since most are not traded in a regulated market place.
They say when you buy securities you have a 50%-50% chance of making money, when you buy penny stocks you have a 50-50-90% chance, 50-50 chance of making money and a 90% chance of loosing money.
When buying penny stocks, like any other security investment, you never invest 100% of you investing capital. Penny stocks are fun to trade, but you should never count on them to be considered part of your primary investment objectives.
All that said, here are some websites that you will find helpful