Shares/Stock Do You Invest Money In The Penny Stocks?

[Good-Guy]

When it comes to trading in the stock market, many traders may come across various different sorts of stocks and share types. This is because the stock market is actually a versatile kind of market that offer different sorts of investment opportunities to many kinds of investor. The penny stock is considered one of the types of stock in the stock market which is usually bought and sold by many traders on daily basis.

I believe that this kind of stock has many advantages of its own. First of all, the penny stock could be bought and sold for a really low amount of price. Some of them could be bought for less than $2 and some of them could be bought or sold for $5. This is also a good kind of investment opportunity for many investors who have a limited amount of capital when it comes to investing in the stock market.

On the other hand, you could buy a huge amount of shares that are worth really low amount of money. You may make profits in the future when the value of these penny stocks increases. The fact of the matter remains that the market value of these kind of stocks may change at any time. This is why the prices of these kind of stock made depend a lot on market conditions. Regardless of that, what do you think are they advantages of penny stock? Do you believe that they are worth investing in?

 

[Suba]

Penny stock is a type of stock that has a nominal price or value and also a small market capitalization. In the American stock market, penny stocks are stocks priced under $5. If you are an expert and have large capital then penny stocks will have great profit potential by the way, you have to buy in large quantities, so prices fluctuate, promote them on social media, or make an analysis of the potential stocks you buy will grow and will be very profitable, when investors buy a lot and the price has risen according to your expectations then you can sell it, and it will make you a big profit.

However, penny stocks often cause losses to retail investors and novice investors, so investors must be careful when choosing penny stocks. Many stocks are dormant and their transaction volume is unstable. Profit potential is 50:50

Although not all penny stocks are bad and detrimental, there are many penny stocks that have big profit potential. In essence, cheap stocks are easier to manipulate (pump and dump), so we have to be really careful so we don't get caught in a valley of losses. So as an investor, you have to research who is buying and who is selling, wide spreads, small liquidity, so you will have difficulty selling penny stocks.

I am not an expert so and do not have big capital to shake up the price of penny stocks, so until now I have not invested in penny stocks.