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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 -
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
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?
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)
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?
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
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
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
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
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
