Penny Stocks Explained

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None of this is meant to be construed as investment advice, it's for entertainment purposes only. Links above include affiliate commission or referrals. I'm part of an affiliate network and I receive compensation from partnering websites. The video is accurate as of the posting date but may not be accurate in the future.

[reallegendsneverdie]

You forgot to mention how difficult it is to sell when it goes up in price

[NicholasBall]

I stopped listening and taking stock recommendations from these Youtubers, because at the end of the day, I end up with a bunch of confusing stocks without knowing when to take profit, so you see I’m often in the red.

[filipposchatzis]

My dad did this once and put 1k in some stock that was 4 cents in 2008. Now it costs 0.00smth.

[sting_grayl]

Rather of relying on penny stocks, I wish to diversify my assets by investing in ETFs/index funds/mutual funds and stocks of corporations with stable cash flows. I received $400k from the selling of my property. What should I do?

[CriticalKunic]

When I took economics in high school we had a virtual stock market to play around with. Each student was given 100k, and whoever earned the most money by the end of the semester versus all of the teachers classes didn’t have to take the final exam. So yeah, while everyone was investing in Apple and Google, I invested in penny stocks and easily earned more than anyone else. Very glad I didn’t take what I learned here to the real world, lol.

[tammystut]

I’d say think things out before you buy stocks, analyze what the industry and topic they’re in is doing, if it’s on a decline or peak, etc. Penny stocks aren’t exactly the best way to make money and a lot of YouTubers will finesse their viewers into buying bad stocks. I’d say invest in index funds like the S&P 500, and think out your acquisitions, as well as try to hold onto your stocks. I’ll give a few starter stocks that have been doing well, AMD and NVIDIA.

[kinggerr]

It's fun to play with Penny stocks when learning about stocks. Just don't put more than $25 total in penny stocks

[OatmealTheCrazy]

I did this sorta for a thirty cent stock I liked. It went up to like 1.60 a few years later. Just wish I hadn't done it as a broke college student cause it just meant my 200 bucks became about 1000 for rent later

[chimichangaman]

When I started investing I only put in $100 so that I learn lessons but not lose much. This was one of those lessons

[fridgerator]

You can only lose 100% of the money you put up but your gains have no ceiling

[carsandstuff]

Funny, I bought a grands worth of active energy shares at 0.001 of a penny (1/10 of one penny each!) then they went up to 0.072p each (7p) in 2 weeks ! Best profit of my entire life ! Was a gamble but right place right time Dod a bit of research on the company and pulled the trigger

[scottb]

The issue with penny stocks isn't the risk of dropping the issue is they are impossible to sell when they go up

[jackiebiskan]

Penny stocks are great to throw in 30 bucks every few months. Across 5 or 6 penny stocks you like if one doubles and 1 cuts and a 1/2, you get even. I would never dream of putting more than a hundred bucks

[ArabellaPottery]

First of; penny stock are any stocks that trade below $5.00 dollars. A really great penny is called FNMA. It's lowest in 2008 was .30 cents. It's now.73 cents. There is plenty of up and down on this stock to make money. I have owned it since 2008. The United States government controls it. Not a corporation. It's where banks go to sell mortgages they make. The 52 week range YTD is .35 to .90 It's full name is Federal National Mortgage Association.

[arianbehnami]

First rule of stock trading: doesn’t matter how many points the stock moves, just the percentage. Some stocks would be devastated by a 30 point loss or would gain ridiculous amounts of value from a 30 point gain. On other stocks a 30 point movement either way would be so inconsequential that its effects would be negligible

[grimreapybones]

You lost your life savings after 10 seconds? Well just wait another 10 seconds you silly goose
People really think stocks only go up or down once

[Tcrumpen]

This is pretty much the premise of Wolf of Wall Street

[TheJamation]

I had fun messing with penny stocks. Ended up making $20 and thought it was so neat, but realized I didn’t care about doing stocks.

[bountyhunter]

I mean you just leave your money in there even if it does go down. Eventually it could go up, still risky though

[jackscorner]

Anything under $5 is considered a “penny stock”.

Penny stocks are actually how Warren Buffet made a huge amount of his wealth so I wouldn’t write them off.

Definitely pays to look at the underlying company and what they’re doing rather than stock performance for penny stocks.