I recently received a SPAM message demanding me to invest in Human Biosystems, a stock valued at $.12 on the day of the e-mail. Somehow, I avoided the urge to turn all of my cash into HSBC , but I experienced a surge of interest in the idea of "penny stocks". In fact, I've long been curious about this. (a/b) gets bigger as b gets smaller. I understand the idea, but nobody on this forum seems to mention these "penny stocks". I'm curious if any of you have spent any time or money pursuing these diamonds-in-the-rough. If you have, I beg you, brag or cry; if you haven't, why haven't you? Cheers!
Lack of liquidity. Lack of institutional buying. Huge spreads. Money better spent on a lottery ticket. Watch the movie "Boiler Room", you'll get the idea.
Do I sense an attitude? You asked why I/we don't trade penny stocks and as of now nobody has bothered to answer you say for me. Sorry if you don't like my answer but I think I got my opinion of penny stocks across. I wouldn't hold your breath waiting for traders to explain the ignorance of trading penny stocks to you.
In the "Stock Forum"..this in italics below, may be an indication as to the direction the administration of ET would like to go with this..I realize this is the "Trading Forum", but this is not really a penny stock discussion place... Discuss specific companies listed on the major exchanges. No penny stocks!
now do not misunderstand me, I have fond memories of this... http://www.elitetrader.com/vb/showthread.php?s=&threadid=22048&
why not trade options on good reputable companies, you can get them for pennies and sometimes they triple in a week or less example amln went from .13 to 2.85 in a week, not many pennies do that and if they do it doesn't happen every week something screwed up this was my response
http://i14.tinypic.com/2hdsfw6.gif http://i13.tinypic.com/3ygbmvl.gif if your desperate for pennies heres one to keep an eye on, lyric jeans, don't know if it will take of like true religion did but who knows maybe http://i14.tinypic.com/346uzjr.gif saw this when it was a buck, didn't pay too much attention to it but after it went to 20.00 I thought I might keep an eye for the next kid thing hans was a penny a couple years ago but options can be just as good a 1400.00 investment in amln would have been a round 29000.00 in a week, 5000.00 would have been 109,000.00
It's hard to know over the internet, but I'm a pretty austere and hard-working guy...I don't drop attitude unless it's needed, and when somebody is explaining, I shut my mouth and listen. I assure you that any attitude you sensed was poorly communicated respect. In fact, I've set a note to rent Boiler Room first thing tomorrow. Cheers! :Edit: I'm not a trader, and I'm not looking for pennies. I'm a mathematician trying to get a better grasp on the markets. I have no intention of purchasing penny stocks, but I do have an intention to learn more about why I shouldn't purchase them.