I find penny stocks very attractive. it has one feature: like option kind of cheap , i.e., with high leverage but does not need margin. in another way it is far better than option, most time if you look carefully, they are highly liquid, not like option, even you see a trade, but low volume easily scares you away, this means you can easily use limit price to buy while in option, it is hard, plus cancellation fee, that is a big minus in option. another thing is: you can trade it in a daily chart, that lets you easily study the chart pattern, get in at what your desirable price level. but to options, though everyday lots of multiple folds gain trades, but it is fast and evasilve, if hesitate, gain easily become loss, like today in KBH, I bought 14 call at 0.13, afraid to buy 15 0.01 call, if I bought 15, that produces 50~60 folds, but if you did not pay attention, easily wiped out at all if KBH dips back under 15. another good feature is: there is no expiration date! belly up thing to pink sheet (you can buy 10% of account for each position) happens rarely, most penny just hangs around long long time. also sone penny trends so well, like CLSN, PPHM, ZLC, SVNT... based on this observation, I bought some EXM at 0.54, also plan to buy some CWTR.
thelion.com has some good penny traders with track records and leaderboards of trades ect. I got burned as a newbie with pennies so I never really gave it a second look, a friend here at elite says most Chinese pink sheets end up red
Here is my .02c (get it?) about penny stocks... 1. There is a reason they are penny stocks... 2. I've always made a lot more on more expensive stocks Everyone has to find their own edge though so I wish you good luck
my gain on EXM almost 50%. It works really well. the street starts to realize it is undervalued if EXM will not belly up and survive. most likely it will not. based on this fact, easily it will print 1bucks up.