Monk Posted 15 July 2009 Posted 15 July 2009 Penny stocks increase risk because of bigger % price movements and hence higher volatility. Equally, they can offer extremely large rewards if you get it right but you'll get anialated if you get it wrong. It's not necessarily true that you need to start with a large investment or be extremely lucky to make good returns. The guy I used to live with had £3000 in emerging market funds. Sold them for £6000 a year later at peak. People don't half make some stupid investments though.
James. Posted 15 July 2009 Posted 15 July 2009 Penny stocks increase risk because of bigger % price movements and hence higher volatility. Equally, they can offer extremely large rewards if you get it right but you'll get anialated if you get it wrong. On top of the mathematical reason they're also riskier because they are often in new or very small companies. So the returns are probably skewed to the downside, particularly in the current environment. Basically if you don't have any insider knowledge then I'd stay well away from penny shares right now.
Head Honcho Posted 15 July 2009 Posted 15 July 2009 Goldman Sachs seem to have turned the corner already. Now is definitely the time to be buying shares again. With the right research and a bit of staying power (5/10 years) the market is only going to go one way in the long term.
Bellend Sebastian Posted 15 July 2009 Posted 15 July 2009 On top of the mathematical reason they're also riskier because they are often in new or very small companies. So the returns are probably skewed to the downside, particularly in the current environment. Basically if you don't have any insider knowledge then I'd stay well away from penny shares right now. Or ones that are f ucked and going down the pan. I'd agree that the stockmarket is likely to do well over the next five years, but if you don't have a clue what you're doing, buy a tracker fund or something rather than pick random companies out of hat. There are always shit companies that are worth sod all however well the economy is doing
Alan Johnson Posted 16 July 2009 Posted 16 July 2009 You pathetic fools get stock advice from a low life acne covered football fans forum? I wipe my arse clean with stock paper. If you want some no bullshit clean your cock helmet advice, I charge £1000 for potential stock investment. You will be so self indulged with your winnings that I will be visiting your wife giving them a taste of the Johnson. A.Johnson
Anish Posted 16 July 2009 Posted 16 July 2009 Penny stocks increase risk because of bigger % price movements and hence higher volatility. Equally, they can offer extremely large rewards if you get it right but you'll get anialated if you get it wrong.It's not necessarily true that you need to start with a large investment or be extremely lucky to make good returns. The guy I used to live with had £3000 in emerging market funds. Sold them for £6000 a year later at peak. People don't half make some stupid investments though. That's the best spelling mistake I've seen for a while Fair enough, annihilate is a difficult word though!
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