Penny stocks

They might act friendly and inviting

But once you turn around they'll stab you in the back

Let's talk about why you should avoid penny stocks like the plague

- A THREAD -

1.

Why are penny stocks so attractive to some investors?

Because they're looking for a "get rich quick scheme"

If you put $1,000 into a penny stock at $0.25/share

And the share price increases to $0.50/share

You would have doubled your money just like that

2.

This is an illusion...

Don't fall for the trap

Sure a $0.25 move in share price could double your money

But at what expense?

That stock could instead become worthless tomorrow

Then what?

3.

This brings me to my next point

Penny stocks have very small market caps

They have minimal assets

And they haven't proven themselves

Why is that a problem?

Well many of them aren't even listed on exchanges

They're found on whats called the Over the Counter market (OTC)

4.

So what?

That means lack of liquidity...

You might have a tough time buying penny stocks because there aren't many sellers

And it might take you days/weeks/months to liquidate an entire position

By then who knows where the share price might be at?

5.

Which brings me to my final point...

Because many of them are new businesses

They have very little financial information disclosed to the public

Not because they're regulated differently

But because they just simply don't have it

6.

Investing in a company that has no record of past performance is similar to gambling

If you like pumping money into slot machines at the casino

Then by all means invest in penny stocks

You might get rich...

You might lose it all...

Who the f**k knows

I sure don't

7.

Penny stocks shouldn't be apart of any portfolio

Gambling isn't the answer

The answer is investing in strong and established companies that people use on a daily basis

If you need help with identifying what those are

Or how to find them

I'll give you the blueprint below

8.

Disclosure: This course doesn't apply to analyzing penny stocks

Because you literally can't

But it does apply if you want to keep your wealth https://bit.ly/dividendmoney