Group Discussion - Penny Stocks

Stocktrading101 · #1 (**permalink**) 12-08-05, 02:09 PM

Now technically penny stocks are any stocks under $1 a share, but I want to encorporate this discussion into stocks into the lower few dollars per share as well. What have you heard about them? Do you have an image associated with them? I remember when I was getting taught that I was give a specific association about them. Have you ever traded one?

The purpose of this discussion is to bring exposure to general opinions and such about them, and to also help people who may not know alot about them to read this thread and get an idea or two on them.

Let the discussion begin,

spncr2 · #2 (**permalink**) 12-08-05, 09:23 PM

I have traded penny stock before. Lucent (LU) and Black Gold (BKGD.PK) are both stock close to $1 that i bought before. Both I made money one. Keep in mind that these cheaper stocks are VERY volatile. Make sure you buy as low as possible because sometime (it depends on how many shares you own) but a $0.01 fall could lose $50, $100, and on, but you want to buy as low as possible so profits can be made the same way. $0.01 rise could be a very large amount of cash if you bought enought shares.

*Make sure you calculate this before buying ANY stock.. Keep a calculator in had at all times. I do.

All the best,

WallStGolfer31 · #3 (**permalink**) 12-09-05, 11:21 PM

Most penny stocks are scarcely traded and have very low volume, hence you get indecipherable charts, and if they are under a buck, they usually have horribe fundemantals as well. Now distressed securties are the exception to the rule, but that's another story. If you have any further questions, you can AIM me if you wish.

spncr2 · #4 (**permalink**) 12-10-05, 07:22 PM

That's a CRAZY split!! haha, the only split I have ever heard about was a 2-for-1. Infact, if i am correct, SWN just recently had one.

All the best,

Stocker2009 · #5 (**permalink**) 01-25-09, 05:02 AM

Can options be used for pennies ? Do the basic orders apply to pennies ? Also I've heard that its difficult to sell them. I figured it's because of the fees . Are there any other reasons that would make them difficult to sell ?

Fredledingue · #6 (**permalink**) 01-26-09, 09:09 PM

On e*trade they require you to call a broker personaly. They told me it's a FED regulation.
I think "market" orders are prohibited to due to the volatility.

I always lost everthing on penny stocks. Only going down, never up, in my experience.

justin_502 · #7 (**permalink**) 02-06-09, 10:56 PM

Quote:

Originally Posted by Stocker2009

Can options be used for pennies ? Do the basic orders apply to pennies ? Also I've heard that its difficult to sell them. I figured it's because of the fees . Are there any other reasons that would make them difficult to sell ?

So if you trade on E trade and you did buy say 10,000 shares of a stock that was .16 then 2 days later went up to .33 and you deciced to sell. Does it work instantly or would you have to wait untill someone buys it if ever? And would you get the profit between the .16 and the .33?

Fredledingue · #8 (**permalink**) 02-07-09, 09:28 PM

"went up to .33" menas only that last trade was at .33.
Doesn't mean there will still be a buyer at this price, let alone instantly.
Some penny stocks don't even trade for weeks.

You have to wait for a buyer indeed.