Business, Equities, Finance, Investing, money, NASDAQ, New York Stock Exchange, NYSE, Penny, Penny Stock, Penny Stocks, Stock, Stocks, Stocks and Bonds, Tesla, Tesla Motors, Trade, Trader, Traders, Trades, Trading, Volume
So lately we have been seeing trends in the Penny Stock World. Penny Stocks only have a 6.28% chance of making a profit, you only have a 12.56% chance of making money. Investors trading on the NYSE have a 54.58% chance of making a profit, and close to a 74% chance of breaking even. But the profits are far less than what they could be in Penny Stocks!
Before I start the stock list, I’d like to say that I started off investing in tons of shares of Penny Stocks, sometimes owning up to 10% of the company itself. And if you’re wondering how penny stocks can make you rich with all these pitfalls, don’t worry, there is an answer, and it’s simple.
Often times, Penny Stocks are not even worth a penny, they are worth less than a penny. However, the cheaper the stock, the more you can buy. For example, I saw a stock called DSNY way back in April at around $00.40 cents and bought it (100,000 shares of it, and unfortunately I sold it at .98 cents. Now it’s at $2.00). I spent $40,000.00 to make $58,000 profit. That’s 145% gain. Even though Penny Stocks only have a 6.28% chance of making a profit, penny stock traders have one advantage that we normal investors (normal as in non-hedgefund, non-Carl icahn) don’t: They have Volume!
If you have every heard the saying, “ Quantity over Quality,” this is one of the few times that saying would be true. As long as the penny stock even goes up a thousandth of a cent, money is still going to be coming through. Volume is everything with penny stocks, and although the jump I described with DSNY happens everyday, the challenge is finding the right stock and sticking with it.
Well that’s all for today. Expect either a article today or tomorrow of Part II!