just wanted to say your articles are awesome im knew at this n reading your articles really help ,just wandering is there any penny stocks that you recommend to buy for a short rise in price (% wise to make $ ) high risk high reward , patience pays off i guess but would love to get off on the right foot
This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.
Nope. Penny stocks are for gambling (and probably losing money with) after you’ve already built your portfolio enough to take care of what’s important.
There are certainly small cap companies I like, and I own some of them, but I think if you’re trying to get off “on the right foot,” which I presume to mean that you’re just starting your investing, it’s far better to learn by buying companies that are really successful.
If you want the chance to make more money and are willing to take some risk, growth stocks that have strong underlying operating results — meaning, in most cases, that the actual revenue and cash flow are growing fast — will be a better chance at a short rise in price than speculating on penny stocks, most of which are junk, with no real underlying fundamentals, and have very low odds of ever succeeding.
If that’s not risky enough for you, then I might even suggest trading call options on mid-cap and large-cap growth stocks over speculating on OTC and story-driven penny stocks — there’s still that likelihood of losing 100% of your speculation, but I think the odds of success are better.
But both options and penny stocks have low odds, and you’ll probably lose your money… patience and building a portfolio are a better thing to focus on, and if you try to think slowly and carefully about individual stocks you may find some great gains from actual companies you want to own for 20 years. That’s the dream, anyway. I still hold aside a few percent of my portfolio to use for options speculations and the occasional “penny stock” or similarly low-odds bet… but most of those are destined to lose, so you have to balance those occasional 2,000% gains with the fact that more than half of those speculations are going to give you 100% losses (and, more’s the pity, you don’t know which is which before you begin).
Hope that’s clear and at least a little helpful. Best of luck.