Bravo Sierra asked:
I know a few traders that swear by these things. I’m not talking about rookies I mean semi-experienced traders with like 75% of their portfolios devoted to OTC businesses. Most of them by no means make any profit what-so-ever. I understand that some folks when they are beginning out will believe pennies are a “good buy” and the company “appears like a good thought” but generally after a month or two they understand cheap stocks are a shot in the dark.
All good answers!
November 4th, 2009 at 1:50 pm
The same reason people play the lottery
November 7th, 2009 at 1:45 pm
because it’s not investing it’s gambling:People like to gamble.
November 9th, 2009 at 5:59 am
I think it’s a highly optimistic attitude and personal greed, that one could double or triple their money in short time.
Penny stocks are a shot in the dark because the company usually faces liquidity issues and have very limited reputation. But hey, the stock could shoot up just on one snippet of good news…unfortunately, it could go the exact opposite just as easily.
November 12th, 2009 at 5:52 am
When a 100 dollar stock goes up 10 cents it’s no big deal. When a 10 cent stock goes up 10 cents it has doubled. They forget that it going up 10 cents is highly unlikely.
Others get turned on by the idea of buying 10,000 shares of something.