| v> | | | | unlikely that it will go up. It is just not a good buy |
| All over the internet I hear people trying to pick the | | | | and smart money’ knows to avoid it. If |
| best penny stocks. They buy stocks that are | | | | the best investors do not buy these stocks there is |
| trading at $.02 and hope that they will go up. | | | | no reason why anyone should. |
| All over the internet I hear | | | | Because the smart investors |
| people trying to pick the best penny stocks. They | | | | will not invest money in penny stocks some people |
| buy stocks that are trading at $.02 and hope that | | | | try to buy a lot of the stock and sell it once it goes |
| they will go up. | | | | up. This theory seems to make sense. If you buy |
| The main reason behind this | | | | $100,000 of a stock trading at $.15 that stock is |
| is that those stocks are cheap. It is relatively | | | | going to skyrocket then you can just sell it. |
| inexpensive to buy tens of thousands of shares of | | | | This is called pump and |
| penny stocks. Then if the price goes up they can | | | | dump and is highly illegal. It can and has sent people |
| make a fortune. The problem with this thinking is | | | | away for a long, long time. Another form of this is |
| that penny stocks probably will not go up. They are | | | | the people who try and pump up this hot penny |
| penny stocks for a reason. | | | | stock by telling everyone to buy it. Of course the |
| If a stock makes it too low | | | | stock goes up because everyone buys it. Then the |
| there is a reason for it, and there it is extremely | | | | owners sell their stock and it crashes. |