Ever Invest In Penny Stocks?

Penny stock investing

When I invested in penny stocks I had an open mind and was ready to study, watch and learn. I knew most other investors considered investing in penny stocks pure speculation and not true investing.  I used expensive trading software that helped me look for cycles and patterns. I also kept a watchful eye on the boards to see what others had to say. My most memorable 10+ bagger was a pharmaceutical that went from $1.00 to .05 and then to $30.00.  ( It helped me buy my house )

Is penny stock investing a shot in the dark?

Investors agree it’s essential to acquire the facts to make informed investing decisions. When it comes to penny stocks, solid information is much harder to find. Also, penny stocks listed on the pink sheets are not obligated to file with the SEC.   Because they are not reporting to the Securities and Exchange Commission the common consensus is they are never regulated or checked out.  ( Like Enron,  WorldCom, Tyco International and  HealthSouth was? )

Penny stock investors assume the news releases and earnings reports are correct. Investors also assume that the management team is also competent and honest, but these assumptions are dangerous!

A couple of penny stocks I invested in did a reverse splits shortly after positive news releases.  Part of their plan to unload?  Then they can again sell as many shares as they was originally registered to do so right? Also, I learned on the forums that foreign countries don’t have to play by our rules when it comes to investing in penny stocks. For example: They can short our penny stocks without the huge margins? I think that would help explain some of the people in the forums bad mouthing the penny stocks I invested in  ( It’s easier to scare someone into selling than convince them to buy it seems.)

After 10 years of being in and out of the markets ( including futures )  I now share Robert Kiyosaki’s sentiment.  “Common stocks are for common people” We have no control. We don’t know what’s going on. …And it’s all based on fiat currency.

I now use a system to acquires precious metals without using out of pocket money. The metal has appreciated in value the past 5000 years and has been hoarded by kings, countries and the rich.

 

 

Posted in penny stock investing | Tagged , , , , , , | 1 Comment