Is Penny Stock Investing Worth It? – Coffee With Markus | Episode 76
Do Penny Stocks Ever Make Money?
Penny stocks are very popular. After all, it’s exciting when a $0.20 stock explodes to $20!
But is it really possible to make money with penny stocks?
Do Penny Stocks work, and what would you have to do to successfully trade penny stocks?
Trading penny stocks is very popular, and here’s why:
A penny stock is defined as shares that are trading at less than $1 per share.
Most penny stocks are just worth a few cents per share.
So if you have a small account, let’s say $500, then investing in penny stocks is very attractive: if the penny stock is worth $0.10, then your $500 buys you 1,000 shares.
Is it worth investing in penny stocks?
Well, IF the penny stock moves from $0.10 to only $0.50, then your $1,000 would turn into $5,000, i.e. you are making 500% on your investment.
Do penny stocks ever make money?
The problem: Often penny stocks are companies that are not profitable yet. And maybe they will never be profitable! It’s very rare that penny stocks are taking off.
That’s why many penny stock traders are using a “spray and pray” approach:
They buy lots of different penny stocks and hope that at least ONE of them takes off.
How to trade penny stocks?
Penny stocks are not traded at exchanges (yet). They are trading “over the counter (OTC)”. Most stock brokers allow you to buy and sell penny stocks. Just ask your broker.
So is trading penny stocks worth it?
Watch this video and find out!
Other videos and playlists mentioned in the video:
– Is Trading Forex Worth It? https://www.youtube.com/watch?v=HXrP7uHLWLk&t=6s
– Should I Start Day Trading? https://www.youtube.com/watch?v=ET4_M7b-skA
– Options 101: A Beginners Guide To Trading Options: https://www.youtube.com/watch?v=tXpBZGj-FiA
– How To Setup TradingView: https://youtu.be/kyoSU8mbx8g
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