hi, i am an inexperienced learner. from what i read of the posts here, i note that the investors here tends to day trades certain company shares eg APPL, GOOG etc, which requires a big sum of money while the movement is not volatile enough to earn alot. Please correct me if my perception is wrong. i will be grateful if someone can point out to me as to what is the strategy used, how much capital is required, how much is earned,etc. Currently, my start up capital is about US2,500. and i used it buy those penny stocks with the big movement, such as those increased by more than 20% in a day, and high volume. Luckily, i earn about US150 per week. my commission is a flat rate of US25. What i read here is, penny stock is not worth to day trade and better concentrate in APPL, SIRI, GOOG etc. With my little capital and the movement of those stock, i dont think i can earn about US150 per week. that is why it puzzles me why people still want to purchase those stock with high value per share. Please educate this inexperience and new learner. thanks in advance
Risk....to most here I believe the risk is unacceptable. There's often times the lack of liquidity--sure the pink is up 14000% @10:05 a.m. and the volume is @158,000,000 but this pink sheet is trading @.0002-.0003 per share w/39 trades @ $200,248. Naked shorting, MM games, scams, SEC halts, toxic financing, death spirals, pump 'n dumps, bashers,brokerage restrictions, clearing/settlement problems,lack of information(filings, share structure), reverse splits.............on and on. Having said that, however, if one is nimble and not greedy, pinks, yellows, greys, otc micro/small caps can net you some spectacular returns if your very careful and have strict trading rules......most buy into the hype and get wiped out rather than the quick flip for 30 %. Most of these penny stocks are just bs shells or wannabz and they are propelled by pr hype and message board chatter. Once again they are speculative at best.