Which Penny Stock is due for a Huge Breakout?
Ever wondered where your next break will be in the penny stock market? I do. There is so much hype about this or that company and to buy low and sell high and take your money and either reinvest or take your money and take out your initial investment and go at it again. I am new to the game of penny stock trading. I started with an email I received and at my son’s suggestion about me liking “penny stock trading.” Wrong. I invested an initial $1,000 on a, supposedly, great stock and how it was going to gain a 400% return and even if it cost .33 it was going to increase eventually to $2.00. Well, what a highway robbery that was. By the end of two weeks, my initial investment had gone from $1,000 to a mere $167. “What a joke!” I thought. How could I fall for such a scam? That email I received indicated that the penny stock for TAGG was going to take a HUGE leap and it was going to land a $2.00 per share and to my surprise, TAGG was never brought up again by pennystock.com and they went on to another, supposedly, “GREAT” investment.
I thought to myself how I could have fallen for that one. I guess you live and learn, or do you? Penny stocks are a gamble. If you are not prepared to lose then I suggest you don’t invest. Just like me, there were probably a lot of persons who received that same email and fell for the scam. Sometimes you can have a great analyst select a penny stock and it turns around and makes you a large amount of cash. How, you might ask? Well, one, there are analysts with a very good track record. One must make sure that those who are out there do not just do it to convince you and others to sway the buy of the stock to their favor making the stock pay more by bringing in more investors and then they sell their stock to people like us and then they run with the profits. That is no fun for a newbie like me who lost a major part of my money because I fell for the scam. It’s hard not to, we are wanting to believe in miracles and for the most part, we get disappointed.
The truth is, we have to do our own research. We need to run comparison charts and we need to do our own online research on the companies we choose to invest. I see that TAGG has dropped to a little over .05 and I am waiting for it to drop again so that I can purchase at least $100 more worth but for at least a million shares. Can it happen? It might. The market is tricky. I purchased 1,000,000 shares from at .0001. It is a pharmaceutical company. Most of these will pull back up again and sell for 2 cents or more and when it does, .0001 will turn into a HUGE profit being that I purchased 1,000,000 shares for a mere $100. My $100 will have turned into a $20,000 profit minus the original $100. Not bad at all.
So is buying penny stock a risk? Yes, most definitely, especially when you are not ready to spend that money and not care what happens to it. For now, I will let you know how I do on my shares. Good luck trading.