Tim Grittani (left) began day trading penny stocks with $1,500 three years ago.
By following the lessons of penny stock guru Tim Sykes (right), Grittani has raked in over $1 million in profits.
Can you get rich off penny stocks?
Savvy investors who have learned how to make money with penny stocks have the potential to make quick profits, but the vast majority of penny stock investors will lose their shirts. The short answer is yes, but it’s important to remember that trading penny stocks isn’t like trading normal stocks.
What big companies started out as penny stocks?
- Concur Technologies (NASDAQ: CNQR) This is a stock with a colorful history.
- General Growth Properties (NYSE: GGP)
- True Religion (NASDAQ: TRLG)
- Pier 1 Imports (NYSE: PIR)
- American Axle & Manufacturing (NYSE: AXL)
- BJ’s Restaurants (NASDAQ: BJRI)
- Quality Systems (NASDAQ: QSII)
- Monster Beverage (NASDAQ: MNST)
What percentage of penny stocks fail?
Almost all penny stocks have a failure percentage of 100% and will inevitably move to 0 at some point. These companies usually have a terrible financial structure and are deemed to fail. Heavy up-moves are typically due to heavy speculative news that also doesn’t last long.
How much money can you make from penny stocks?
With a relatively small investment you can make a nice return if — and this is a big if — the trade works out. For example, say you buy 10,000 shares of a $. 30 stock for $3,000. If the stock reaches $1, you’ve made $7,000, doubling your money.
What is a good penny stock?
Top 10 Penny Stocks
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What is the best penny stock to buy?
Best Online Brokers for Trading Penny Stocks
- TD Ameritrade – $6.95 per OTCBB trade.
- Fidelity – $0 per trade.
- Charles Schwab – $0 per trade.
- Interactive Brokers – $.005 per share.
- TradeStation – $0 per trade (up to 10,000 shares)