Comments on: Why are penny stocks that trade at a few cents not considered safe? http://www.secretpennystockfortunes.info/why-are-penny-stocks-that-trade-at-a-few-cents-not-considered-safe/ Profitable penny stocks to watch Mon, 18 Oct 2010 19:43:00 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Jerry http://www.secretpennystockfortunes.info/why-are-penny-stocks-that-trade-at-a-few-cents-not-considered-safe/comment-page-1/#comment-7199 Jerry Sun, 18 Jul 2010 03:16:08 +0000 http://www.secretpennystockfortunes.info/why-are-penny-stocks-that-trade-at-a-few-cents-not-considered-safe/#comment-7199 They are considered extremely high risk because they often go to zero. Even if you paid a low amount per share, you can still lose 100% of what you invested. Bid/ask spreads are huge. For many penny stocks there is plenty available for sale, but no buyers to be found when you want to sell. You really need many years of highly specialized experience to even consider penny stocks. They are considered extremely high risk because they often go to zero. Even if you paid a low amount per share, you can still lose 100% of what you invested.

Bid/ask spreads are huge. For many penny stocks there is plenty available for sale, but no buyers to be found when you want to sell.

You really need many years of highly specialized experience to even consider penny stocks.

]]> By: Johnny W http://www.secretpennystockfortunes.info/why-are-penny-stocks-that-trade-at-a-few-cents-not-considered-safe/comment-page-1/#comment-7200 Johnny W Sun, 18 Jul 2010 03:16:08 +0000 http://www.secretpennystockfortunes.info/why-are-penny-stocks-that-trade-at-a-few-cents-not-considered-safe/#comment-7200 because they became penny stocks for a reason. good companies do not have their stocks crushed to nothing, bad companies do. you are hoping to do what many people who are looking for easy money do, you're thinking "well, if it gains 9 cents im rich!". thats the problem, penny stocks are crap, they are poorly covered so its hard to get good info on them, the companies are usually laden with debt amongst other things (usually poor management too) and it is more likely for them to go to zero than to go up. because they became penny stocks for a reason. good companies do not have their stocks crushed to nothing, bad companies do. you are hoping to do what many people who are looking for easy money do, you’re thinking "well, if it gains 9 cents im rich!". thats the problem, penny stocks are crap, they are poorly covered so its hard to get good info on them, the companies are usually laden with debt amongst other things (usually poor management too) and it is more likely for them to go to zero than to go up.

]]> By: jeff410 http://www.secretpennystockfortunes.info/why-are-penny-stocks-that-trade-at-a-few-cents-not-considered-safe/comment-page-1/#comment-7201 jeff410 Sun, 18 Jul 2010 03:16:08 +0000 http://www.secretpennystockfortunes.info/why-are-penny-stocks-that-trade-at-a-few-cents-not-considered-safe/#comment-7201 Some of them have no assets or revenues. They are worth what they trade at or less. They have no liquidity. They trade wide bid ask spreads, if there is even a bid and ask on them. Most of them trade in the pink sheets or on the Over The Counter Bulletin Board where there is little or no regulation. Its enormously risky. Some of them have no assets or revenues. They are worth what they trade at or less. They have no liquidity. They trade wide bid ask spreads, if there is even a bid and ask on them. Most of them trade in the pink sheets or on the Over The Counter Bulletin Board where there is little or no regulation. Its enormously risky.

]]> By: Common Sense http://www.secretpennystockfortunes.info/why-are-penny-stocks-that-trade-at-a-few-cents-not-considered-safe/comment-page-1/#comment-7202 Common Sense Sun, 18 Jul 2010 03:16:08 +0000 http://www.secretpennystockfortunes.info/why-are-penny-stocks-that-trade-at-a-few-cents-not-considered-safe/#comment-7202 Junk Companies. Many with great stories. Most "story" stocks die. A penny stock can lose 50% value in a minute. Penny stocks are the last place a novice investor should be in. A good penny stock investor considers themselves doing well when they get 45% or more of their picks profitable. The real key is good money management. Junk Companies. Many with great stories. Most "story" stocks die. A penny stock can lose 50% value in a minute. Penny stocks are the last place a novice investor should be in. A good penny stock investor considers themselves doing well when they get 45% or more of their picks profitable. The real key is good money management.

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