Can you make a lot of money with 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.
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.
How do you make money trading penny stocks for beginners?
Start by Paper Trading
You can avoid big mistakes by learning how to trade with the risk-free, no-money-required method of buying and selling low-priced shares, known as “paper trading.” All you need is a pen and a piece of paper to keep track of imaginary trades in real stocks, using a portfolio of imaginary money.
Are penny stocks worth buying?
Penny stocks are not worth the risk. However, if you are investing a small portion of your total investment amount (say 10% or less) in the penny stocks, then it may be considered alright. The only pros of buying penny stocks are that they are capable of making sudden explosive movements.
Has anyone ever got rich off penny stocks?
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.
Who is the richest day trader?
Paul Tudor Jones
He is one of the richest day traders alive today, with a net worth at $4.5 billion as of 2018.