I am by no means an expert investor, but I have had success in the stock market. I managed to buy Bank of America when it was near it’s low point during the financial crisis, which proceeded to triple in value or so before I sold it. I also have dabbled in penny stocks a bit, where I scored another 60% return. Just the mention of penny stocks probably has you wondering if I’m crazy. Not so much, I know the risks. The thing is, the potential for ridiculous returns is just so high that I can’t avoid them. And with enough due diligence I feel as though I can make pretty smart investments. Thus, I think I’m going to be involved with penny stocks for quite some time.
Often you hear about the stock that went from five cents a share to a dollar a share. Could you imagine riding on that ship? The results would be astronomical. Of course, those are the rare ones compared to the average performance. And you definitely have to watch out for the con artists. But in general, having to deal with everything that comes along with penny stock investing makes it all the more intriguing. The companies have so much potential, but at the same time they’re at such a fragile stage. There’s also the constant threat of jumping in within the midst of a classic “pump and dump” scheme, where a group of people will buy a penny stock and spread positive “rumors” about it in order to jack up the price before selling. Thus, I’m always sure to carefully look over the stock’s history. Often it won’t be the first time a “pump and dump” has occurred, making it easier to identify the current one.
At any rate, I wouldn’t yet consider myself to be a penny stock expert, but I like what I’ve seen so far, and hopefully I can reach that point down the road. If I do, I’m sure the end result will be quite lucrative. The stock market is already fun to mess with, but adding some solid earnings would be the icing on the cake.
- AaroNeo