Lux Investing
What should I do?
I am a brand new investor and I subscribed to a sock pick letter for small cap stock to try to learn on small cap investing and how to make profit. The buy price i got the stock was $.28 p/s and the target price was $.64. I put in a stop order to sell for the target price because I thought it would be easier to earn and not have to stand over my comp watching it all day. Did I make a wrong move? I mean, I think about it now and see how I could have been very foolish. What is the best way to handle this kind of situation? I am trying to get a handle of the market and feel for it and this is my first trade EVER. I really need some advice from experienced invertors. PLS HELP!
Public Comments
- I think most experienced investors will tell you to stay away from penny stocks. There is a reason these aren't listed on the major stock exchanges.
- A much easier way to throw money away, is to just toss it in the air in a strong wind. A more sensible way to invest is to put money into what you already know and like. Maybe you go to McDonald's often, or use Exxon gasoline, shop at Kohl's, use Crest Toothpaste, etc. Read up on business, as there are many magazines that offer real advice and info. Watch CNBC. Get a trusted broker.
- Only one comment --- You're playing in penny stocks which can be (and are) manipulated like CRAZY and provide a low return at best after trading fees are charged. Whoever advised you to do this is not your friend or a good adviser. Get out of that mode and move into a more stable higher range where the stocks are not manipulated. Good luck
- Dude - get out of those penny stocks. It's good that you know about stop orders, but get out of the penny stocks.
- unsubscribe that crap and get out of penny stock scams. you want to learn investing? start with Jim Cramer and watch Mad Money or buy his book, he is your friend in investing. when something sounds too good to be true, trust me, it is too good to be true. let me guess, they probably don't even have financial data do they, or are they all negative? don't be fooled, invest in good companies, not something like ABC oil & gas exploration LLC. i've done it myself and lost 90% of my investment. I learned it from my mistake. I am trying to help you avoid making the same one.
- As a fairly new investor in penny stocks and after reading some of the answers here are some thing to keep in mind. 1. Don't listen to the people that say "Stay away from penny stocks". It's not for everyone that's true and there are bad investments out there, but that doesn't mean the entire segment is bad. It's just more of a gamble than say buying Microsoft stock. To continue with the gambling comparison... the penny stock market is like Texas Hold 'em. It's exciting, fast paced and if you go all in at the wrong time you could lose everything. Investing in mutual funds or the "safer stocks" is more like playing golf for a buck a hole. It's nice and fun. 2. Start small and learn. It's a different ball game than most other investing so you have to learn the tricks of the trade. 3. Do your homework. There is absolutely no substitute for doing your own research. If you don't know what makes a good company or a company on the verge of growing, then you will have to get help... from a broker, etc. 4. Do what makes you feel comfortable. If you don't have the time or patience to watch a stock as fluctuates during the day then putting in your a sell price is not a bad idea. You just have to watch because depending on the service you use and the amount of the investment, you could pay more in fees from that stop order than you made on your investment. 5. It's possible that your investment will jump from the 28 cents to 64 cents on the same day, but in the few transactions I've done at similar buy prices, it hasn't happened on mine. Most went a week or more before they rose to a level where I wanted to sell.
- Never buy a stock with a price under $5 per share. This is garbage. You are speculating and you are lost. Get out now and stay out. You will lose all you have to give. You may even lose more.
