Lux Investing

Hello. I want to invest in penny stock I have heard that it a good 4 first timers in investing.?

But if it was you how much would u invest on you first time?

Public Comments

1. Penny stocks are an excellent tool for teaching new investors how to lose all their money! Think about WHY penny stocks might have such low prices...it's exactly the same reason imitation cheese is cheap, they are not worth anything! If you have $100 to invest, consider buy two shares of a $50 stock before buying 100 shares of a $1 stock, you are INFINITELY more likely to actually make some money... Try reading about why at any of these sites:
2. I read the other reply to your question and totally disagree. I assume this is your first investment. Well, let me introduce you to concept of VOLUME in stock trading. Let's say u are trading with a $100. U've got 2 options: Company A trading at $50 and Company B trading at $1. If you buy into a A, you get just 2 units of stock and if you buy into B, you get a 100 units of stock. Lets say company A makes a rise of $15 in the same period as company B makes a rise of 50cents. Your profits become: For A: 2units * $65 = $130 - $100 = $30 For B: 100units * $1.50 = $150 - $100 = $50 Which company has turned out to be more profitable for you? If you are low on capital, penny stocks are the best bet. But business is risky no matter what type of business it is, so I would say invest maybe $800. Goodluck. If you want more advice pls check out my site: http://yourfinancialuncle.googlepages.com
3. Seek the counsel of a qualified professional and don't just get your investing advice on this website! What is scary is that previous answer promoting penny stocks(and his own website) is intentionally misleading! Hey, I can make any investment look good when my example assumes my investment makes 50% when the other investment only makes 30%. Wow, that is really some magic! Generally, keep away from penny stocks. Find a Certified Financial Planner who is willing to work with you to help you understand what you are doing. Happy investing!
4. Throw 100.00 at a time at penny stocks till you lose 1,000. Then stop and learn how to invest real money in real companies. If you're interested in stocks, here's a web site I recommend you check out. http://www.SharkInvesting.com
5. invest in penny stock is probably the worst investment for first timers. You could invest overseas at 7-10% with no risk. Ask me how (through my profile)
6. Who ever told you that investing in penny stocks is good for any investor, knows nothing about the markets, knows little or nothing about investing, and has given you very bad advice When you invest/trade in penny stock you should never put up more than you can afford to loose and you should assume you will loose it all. Unlike regular securities, penny stocks usually do not let you use risk cutting procedures (options and/or stop orders) since most are not traded in a regulated market place. They say when you buy securities you have a 50%-50% chance of making money, when you buy penny stocks you have a 50-50-90% chance, 50-50 chance of making money and a 90% chance of loosing money. When buying penny stocks, like any other security investment, you never invest 100% of you investing capital. Penny stocks are fun to trade, but you should never count on them to be considered part of your primary investment objectives.
7. This is the last place a new investor should be putting money. Start with a mutual fund