Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I am not a sophisticated investor, but even I see the big problems pointed out by this article. You may find it interesting and informative.
"After a stock analyst lost $1 million on one penny stock, he set off to find out how — and soon discovered signs of a far bigger scheme than he had ever imagined."
.
.
. "A self-appointed stock sleuth finds financial giants trading extensively in little penny stocks like the one he owned that tanked. And he learns something amazing: Some brokers can sell shares that don’t actually exist."
.
.
. "Who engages in massive trades in penny stocks on the industry’s own “chill list”? And what happens when you sell a stock you don’t have? Victimized investor Chris DiIorio finds the answers in plain sight and wonders why no one else seems to care."
Last edited by blktoptrvl; 09-29-2016 at 10:12 AM..
“I had never invested in a penny stock before,” DiIorio said. “I was not super sophisticated in this world.” But he decided to take a flyer on E Mobile, based on its promising news. “I bought this company on hype.”
Then there was this:
But it left DiIorio helpless when the stock plummeted from $3.50 to $0.06 a share within two months.
That was plenty for me to lose interest.
“I had never invested in a penny stock before,” -- That just cracks me up.
I learned my lesson on those stocks many years ago. I threw about $3k into a stock that was around $1.50 per share. One of the reasons that I bought it was because one of the very well respected micro-cap funds had bought shares and I figured they knew what they were doing. Company was actually a fraud and all the news releases about business wins and financial figures were false. Company actually only had something like $500 in a checking account and no actual business. People went to jail over the situation.
high volatility "penny stocks" is how i make a living these days. with education and discipline penny stocks can be very profitable. I would never hold such a large position for very long. almost no "penny stock" is a viable cantidate for a long term play. the market is a crazy place that can teach you something new on a daily basis, thats why im in it.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
