Posted:
#1
I am trying to learn how to invest in penny stocks, I know they are risky as they can crash and be caught up in pump and dump schemes so I know most people will say "stay away" but I recently have been watching a couple different penny stocks and just been using the investopedia trading simulator and writing other down in a notebook. A couple have done well for and shows I could have profited a nice chunk of change. the penny stocks would be 1-10 days of holding, not long term trading. short term only.
example
stock A:
stock price # of shares purchase price
.07 cents 50,000 3,500
the stock had risen to .40 cents over 8 days, which after selling at that price is 20k even, so a 16,500 profit, then am I right here where I pay the government my capital gains (15%) (2,475.00), so I walk away with 14,025 profit.
math basically from here
https://www.investopedia.com/articles/00/102300.asp
I have been doing a little reading on penny stocks and confused on some things. I will have to go back and find the articles I read but they had wrote that with penny stocks, sometimes you wont be able to sell the stock and if you are able to, it may be at a lower price then you think? If I am on an online brokeage (ameritrade, scottrade, etc) if the site says .40 and I sell. shouldn't I get that immediately?
opinions, ideas, thoughts all welcome.
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