A friend got me into using a stock trading app and I've been getting into looking at four or five low-cost stocks. His advice was "whatever you put in, consider it lost" and that's probably good advice but so far I'm up like $13 bucks on my $97 that I put in. It's more like a game than anything else to me right now but it's rather fun and seems to be better than buying lottery ticket.

Does anyone have and good penny stock tips?

This message has been edited. Last edited by: mark123,

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Does anyone here pay around with penny stocks?

"Pay" around is usually correct.

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His advice was "whatever you put in, consider it lost" and that's probably good advice ..

But... I also agree with the rest of your post. It can be fun, and if you don't get carried away you will be OK.

I don't have any tips, but it doesn't sound any worse than hitting the casino every now and then as long as you keep it under control financially.

Hi Mark,

One thing I notice about many of the investment threads ......there are people who post results showing how much money they have made recently, which I frankly do not believe. It seems that whenever we have a market drop, there are some posters who post how they "saw it coming and got out just before the drop."

Then the same posters will brag about how they "got in just before a big runup " with some risky thing or another, and made a ton of money.

Just thought I'd add that since this seems to consistently happen and one should beware of those who claim to always be on the winning side of any risky investment.

that said, I never did penny stocks. I decided to stay with (BORING) index funds and basically not try to hit home runs or do hail Mary's. I leaerned a lot from JALLEN and others here, and, while JALLEN was a value investor guy, he did agree about index funds too.

but best of luck if you try the penny stocks.

When it comes to penny stocks I'm reminded of the old joke: "How do you make a small fortune raising horses? Start with a large one."

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Originally posted by Tejas421:
When it comes to penny stocks I'm reminded of the old joke: "How do you make a small fortune raising horses? Start with a large one."

Yeah, seems like I should get out sooner than later. I'm sure it's only fun because I made a few bucks.

Watch out for "pump n dump"
I called myself researching and got into reading the good stuff without looking up the actual end user reviews. 300.oo doubled, I bought more gonna sit and see.
I lost 1k by the time it was over.
The sales price usually equals the increase.
But It was fun.
I knew a guy that bought proctor n gambel (sp?) as penny stocks. Retired a millionaire 1990.

I do with Crypto. I capped myself at 100 dollars no matter what. I've made a bunch and lost even more. It's fun though, but you have to have limits.

You'll know when my Crypto hits 19K a coin like Bitcoin in 2015, because I will be trailing 12131 in the classifieds. I would buy anything he sold

Set a limit, and have fun. I started with 100 bucks, and will get out completely when (if) its gone. I siphon off everything over 100 into a savings type account. I'm doing okay percentage wise, actual cash isn't so much. But hey, I got in just before the run up and I'll see the bear coming.

Earlier this year I Bought a few thousand shares of a stock that was less than a penny based on a hunch since there was zero research available on this company. I overheard people on the train talk about it. I spent more taking my wife and kids to appplebees last night for dinner so it was not a big risk and if it went to 0 I’d write it all off anyway. Within a few weeks it popped to .23c. Sold 90% of my stake for a nice little gain. Will buy the wife an Apple Watch for Xmas with the winnings and pay short term tax gains on the rest. Still have 1000 shares and its trading at .09c.

A long time age I read advise on penny stocks. Said to buy a lot of different stocks and put them in a drawer and forget about them. Pull them out years later and you will find that at least 98% will be of 0 value, but the rest could be quite valuable. Sounded good, but never tried it so I don't know if it would work.
Rod

Playing with penny stocks is gambling, plain and simple. The odds are not in your favor. Baccarat at the casino has better odds. At least in a state casino there are state regulations governing the payouts. There is a lot of shady stuff going on with penny stocks. Go watch the film Boiler Room and you will get an idea of what goes on in the industry.

So far GLUU is my best performer.

I worked with a guy who was heavy into "Penny Stocks". The last time I saw him, he said he had lost $30K.

I fooled around a few years back with penny stocks. Put in $1000 and said that would be it. When it was gone, no more. If I got it up to 10k, I'd get out and stay out. So I lasted about 2 years with it and had a lot of fun. I was good at picking and buying, but lousy at figuring out when I should sell. Finally got tired of it, and didn't like doing the tax end of it (I do my own taxes). When I got out completely, I had about $400 left.

If you see an ad for Stratton Oakmont. Do not call the number.

When Warren Buffett offered the million dollar challenge years ago it made me realize that picking individual stocks is an exercise in wasting your money.

Basically the deal was offered to all these highly educated money managers who went to the most prestigious schools to pick individual stocks to beat the market average over, I believe the next 10 years to claim your prize. Not a single person could do it.

There are tons of index funds that can show a 10% return over the last ten years so pick one of those and relax. Losing money is losing money even if it says penny in front of it. Not only are you going to lose the money you are “playing with” you are losing out on the gains that the money would have made you if you would have just picked an index fund.

Blackjack. Better odds.

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Originally posted by Prefontaine:
If you see an ad for Stratton Oakmont. Do not call the number.

My first thought too.

James

I dumped everything I was holding. It lost its interest rather quickly.