Penny Stocks...Or Around There...

SHIFTY101EASY said: "so i dont have much to invest, so 20-40 dollar stocks wouldnt really do much for me..... im not really trying to make money right now...im just interested in trying out what its like to buy stocks and learn how it works.... so what im interested in is some penny stocks...or ones 3 bucks and less just so i can get a respectable amount of shares without having to spend much money when im not really sure i wanna get into it all.... its frustrating to find out that Firstrade dosent have the one stock InvestorMan suggested because its traded on the Toronto exchange or something....but thats kind of what im interested in...tiny investments that i can just play around with. Even though i just went through a light hell signing up with Firstrade, id consider switching brokers...only thing is the lowest minimum i could find besides share builder and firstrade which is nothing, was 500 bucks. i dont have that to put away right now so yeah.... if you can suggest any stocks or better brokerages without min. balances, thanks. P.S. i like firstrade. the interface is simple for me to understand and its been pretty good so far. so im not really intent on switching but if there a way better option...id consider it."

LanceJ said: "[QUOTE=SHIFTY101EASY]so i dont have much to invest, so 20-40 dollar stocks wouldnt really do much for me..... im not really trying to make money right now...im just interested in trying out what its like to buy stocks and learn how it works.... so what im interested in is some penny stocks...or ones 3 bucks and less just so i can get a respectable amount of shares without having to spend much money when im not really sure i wanna get into it all....[/QUOTE] 1) Never invest in penny stocks with an amount greater than 20% of your overall investment $$ 2) Never buy a stock unless you are trying to make money... the only reason to ever invest in the stock market is to make money. 3) The number of shares you buy should NEVER be the deciding factor in investing in a company. It's only the increase % that matters. A 10% increase on $500 is $50, regardless of whether you hold 100 shares @ $5 a share, or 1 share @ $500 a share. You invest because of the increase potential, not because you can hold a greater quantity of shares. 4) If you are not sure you want to be in the stock market, then you shouldn't get in the stock market because you probably won't last long and indecisiveness will kill you in the stock market. The only way you will make it as a trader is if you have a dogged determination, know what you want, and go after it. Then, when you get knocked off your horse, you get back on it again. Failure is not an option. No matter how many times you are wrong and get knocked down, you get up, dust yourself off, and get back on. At times you'll get so weak, but you keep on, when friends and family fall away and give up, you persist. When the stock market falls out of "vogue" and is no longer the "cool" thing to do, you keep on. Why? Because you are driven. You know what you want and you are mean, lean, and hungry and will not settle for failure. This is the determination that you need to succeed in the stock market. If you are willing to give anything less, then you should not get in in the first place as you will most likely loose money and give up anyway."

SHIFTY101EASY said: "thanks for the tips....i dont really plan on LOSING money though....i meant im just not putting it all on the line and HAVE to strike it rich, im just trying to learn how things work, if i were to lose, i wouldnt quit. thats basically what im saying.....i just wanted to dabble...im assuming you didnt put thousands of dollars into the market on your first buy....but i could be wrong. anyways....thanks....i will keep it all in mind."

HappyHarry said: "$20-$40 stocks are exactly where you should be looking. How long of a time-frame do you plan on holding for?"

LanceJ said: "[QUOTE=SHIFTY101EASY]im assuming you didnt put thousands of dollars into the market on your first buy....but i could be wrong.[/QUOTE] Correct. I started out with about $1,000 and grew it into $6,000 after 8 months. I did exactly what HappyHarry has said, invest in companies that trade on the major exchanges between $20 - $40. I made my money by doing exactly what I'm demonstrating in the Sticky Six message thread for new investors. I made my money 3% - 7% at a time, making many trades over an 8 month period. Once you build your money up with lower risk stocks, then you can gamble in higher risk penny stocks with no more than 20% of your total portfolio."

AlfredSokol said: "The main trouble with the penny stocks is the reporting. They aren't required to supply as much information as exchange listed companies. This means there is a greater potential for fraud. If you stick to the big companies, you can be relatively sure their information is accurate. Companies with high growth rates and expanding product lines usually make very good investments, especially if you can find them at good prices."

thezster said: "[QUOTE=AlfredSokol]The main trouble with the penny stocks is the reporting. They aren't required to supply as much information as exchange listed companies. This means there is a greater potential for fraud. If you stick to the big companies, you can be relatively sure their information is accurate. Companies with high growth rates and expanding product lines usually make very good investments, especially if you can find them at good prices.[/QUOTE] Patience can be the key on this strategy. Solid companies are often victimized, especially these days.. on news releases. I monitor companies in the $40 - $60 range with realistic P/E's - real "bricks n morter" companies that "should" always be there. When current events cause a 1 - 4% drop in their price over a day or so.... I tend to jump in....... unless they were overvalued in the first place. For every action there is a reaction, be it a hurricane, oil shortage, or the like - things a company cannot dictate...."

SHIFTY101EASY said: "[QUOTE=HappyHarry]$20-$40 stocks are exactly where you should be looking. How long of a time-frame do you plan on holding for?[/QUOTE] well...im not hellbent on a certain time period, but im pretty motivated, i like to check my account and what not whenever i get a chance to. although i dont full understand everything yet, id probably like to be more active than dormant, but if dormant is what will make money, then by all means, im all for it."

SHIFTY101EASY said: "[QUOTE=LanceJ]Correct. I started out with about $1,000 and grew it into $6,000 after 8 months. I did exactly what HappyHarry has said, invest in companies that trade on the major exchanges between $20 - $40. I made my money by doing exactly what I'm demonstrating in the Sticky Six message thread for new investors. I made my money 3% - 7% at a time, making many trades over an 8 month period. Once you build your money up with lower risk stocks, then you can gamble in higher risk penny stocks with no more than 20% of your total portfolio.[/QUOTE] nice job. i need to save for a new car and vacation right now so thats where my extra money is going.... by the way....since you only had your stocks for 8 months...how much money of that $6,000 is actually yours? i cant recall the tax rates...im pretty sure capital gains tax is HIGH.....just curious. thanks"

alhamid said: "short term gains are taxed at your normal income tax rate."

poldo said: "[QUOTE=SHIFTY101EASY]well...im not hellbent on a certain time period, but im pretty motivated, i like to check my account and what not whenever i get a chance to. although i dont full understand everything yet, id probably like to be more active than dormant, but if dormant is what will make money, then by all means, im all for it.[/QUOTE] Look into buyandhold.com you can invest small amounts ($20 at the time) at any frequency it means you can purchase fractions of shares so you can go ahead and buy $20 worth of Apple or Google :) These days is not easy to pick a stock that will move up fast unless you take more risks it seems the market has taken a sideways direction probably due to the high energy cost.. november through the holiday season should be better I always look into electronic retailers (best buy ,circuit city, wallmart) they do well during the holidays. forget about penny stocks that's a sure way to waste money if you don't know what to do, they are traded on rumors and speculations 90% of the times"