Shares/Stock How Not to Get Scammed With Penny Stocks

[Mika]

Imagine, you get a tip that the stocks that cost 10 cents now will soon become 50 cents. You invest $1000. Soon, the stocks become 50 cents, you feel so confident that you now invest $10,000 and hope that the stock will become $1. Sadly, this does not happen and you lose money.

You need to understand Penny Stocks Scams

Penny stocks are stocks from small companies. In the stock market, there are no buyers for these stocks. They are priced very small, something like 10 cents, 20 cents, 50 cents, $1, etc.

More than 80 percent of stocks are controlled by 5-6 people. These people spread fake tip in order to encourage people to buy these stocks (just like I mentioned in the first paragraph)

These companies do not have a proper balance sheet. These companies do not have any orders.

While investing, always make sure to check fundamentals and technical, only then you will earn profits.

 

[Suba]

In my opinion, the term Penny Stocks Scams is not appropriate, because shares will not disappear from circulation or the stock market, but because of whales who want to get big profits, they fry the shares (pump), so that it will harm many novice investors, so basically penny stocks are not It is recommended for investment, except for those (whales) who can control the majority of shares and in general they will carry out Pump and Dump actions, and only for stock trading and even then must be done with a special strategy.

 

[Jasmine]

Penny stocks are not scams, however, some scammers try to scam people through penny stocks. First of all they will evaluate the value of penny stocks more than the market value, for example, the price of stocks not even be 10 cents, but they will value the stocks for 20 cents, or 30 cents. For normal people stocks that can be bought for 20 or 30 cents look very lucrative but these people do not kn ow that these stocks are over valued even though they are cheaper than majority of stocks. Secondly, the value of stocks do not match with the market value of the company. The company does not have any sales, the company is not making any profits, yet it is tell you that the stock is profitable investment. Who gets caught in these Penny Stocks Scams? People who are greedy, people who want to take short cut route to success.