In today’s episode I’m going to share with you the pros and cons of penny stocks.

Penny stocks are hugely attractive, and they are great for certain types of traders. But they’re horrible for other types of traders.

In this episode we’ll cover the advantages and disadvantages of penny stocks, so that way you can make a rational decision to see if penny stocks are right for you.

We’ll talk about things such as their low price, manipulation, getting delisted, regulation issues, risks related to penny stocks, and more.

Posted at: http://tradersfly.com/2015/02/pros-cons-penny-stocks/

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36 COMMENTS

  1. Penny Stocks are good if you do your research about the company. However, don't bet your money you cant afford to lose on Penny Stocks because they are risky investment coz either you get riched or you get broke.

  2. My friend made me cringe when he said he thought the federal government steps on once a stock goes below $5 so people don’t loose to much money. When I told him that
    A not the way it works he said the government should step in. Wow!

  3. I remember my first penny stock it funny but it a true story. I brought 400 shares of hmny and it went from 4.95 to 3.50 so I thought nothing of it because it went to $6.00 two weeks ago. so each day it was losing 5 cents and I thought nothing of it. But something strange happened. when I was in the airport bus line I saw a guy who looked like the coo for movie pass walking in the middle of the high way with a black suit on. I said to myself omg that guy look just like the coo from movie pass. But i kept the stock anyway I SOLD it at 2.00 right now it trading 0.01.

  4. I always heard the opposite. Something that's cheap is NEVER good, according to the people I grew up listening to. They used to say "You get what you pay for," and Wal-Mart's cheap products have proven that statement right beyond all doubt. I'll never buy a damn thing from them again.

  5. Nice vid. My question is, should take in account the market cap size + float + Price? meaning to stay a way of penny stock, should trade market cap that is mid or large and float size is huge? thanks

  6. become an Amazon FBA seller in books – use online arbitrage software to buy books then have prep company get it to Amazon's warehouse then set a repricer. You'll double your money within a year

  7. Why not learn to trade the bigger stocks now? Well just the simple face that it's too expensive. Once i make 1 million them i'll move to normal stocks. But penny stocks or even options is better for someone who doesn't have all that money to start with.

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