Question About Penny Stocks. Anyone Ever Deal With Them?

[nepatsfan12dt]

My brother and I were thinking about putting $500 each into some penny stocks and just seeing what we can turn that into. Anyone have any experience or stories to tell involving penny stocks? Thanks.

[SMVintage]

Penny stocks are pretty much gambling and to routinely make money you have to trade insanely large amounts of shares or do something illegal (pump and dump, which is not recommended at all).

If you really just have the urge to try in the market, take that $500 and consider one "consumer monopoly" that pays a decent dividend, do some research (Morning Star is my go-to) and buy when you feel its low...

[nepatsfan12dt]

Sorry I'm new to stocks and the terms. What do u mean consumer monopoly?

[PoseyBuster]

Consumer Monopoly: The exclusive possession or control of the supply or trade in a commodity or service.

[SMVintage]

Sorry I'm new to stocks and the terms. What do u mean consumer monopoly?

Consumer Monopoly: The exclusive possession or control of the supply or trade in a commodity or service.

What Posey said, think of Coke, IBM, GE, etc.

[PoseyBuster]

Think of a major industry DOMINATED by one company. Fast Food Coffee: Starbucks. Fast Food: McDonalds.

It's NOT a good thing.....to put it into card terms, think about Topps' baseball exclusive license, they control most of the baseball market. Etc. etc.

[nepatsfan12dt]

Thanks for the responses. If I have any other questions, I'll let you know. My brother and I were just talking about it and really havent done much research or anything on what to buy, just tryin to see how they work.

[PoseyBuster]

Its tough, try to get some micro stocks, and when they double or triple or shoot up quickly in a morning or afternoon, dump it all and take your money.

[nepatsfan12dt]

Its tough, try to get some micro stocks, and when they double or triple or shoot up quickly in a morning or afternoon, dump it all and take your money.

Okay, thanks for the advice. Do you do pretty well? Just curious what kind of $ you can make off of $500-$1000.

[PoseyBuster]

Okay, thanks for the advice. Do you do pretty well? Just curious what kind of $ you can make off of $500-$1000.

It's the stock market bro, you can lose it all in 1 day or gain $100,000 in one day.

Go into it without any preconceived notions of grandeur or expectations...just lower those expectations. Read a lot, watch Mad Money (somewhat helpful, his little off the wall tips and the way he explains graphs are more important than what he tells you to buy and not buy.

I funded my portfolio once, for $2,500. My highest point was $8,320 worth of stocks, lowest point (early on) was $340ish. Currently My portfolio is valued around $1,200 but i JUST bought a new round of prospective stocks so im excited :D It's totally volatile and fun =]