Can you actually make a lot of money from penny stocks?

[deucher]

Penny stocks are low value stocks that can be purchased for less than $5, or sometimes even with $1-$2. can you actually profit form this investment?

 

[Riberet19]

As in all investments, you can obtain returns from them, but penny stocks are high-risk investments, due to three main factors, the first is that they do not usually have much market capitalization and therefore tend to be very volatile, the second is that they tend to be companies about which there is little information and it is difficult to access their information and therefore it is difficult to analyze it, and the third is that they are markets with little liquidity and perhaps when you want to sell your position you have to wait a while until it appears a buyer, penny stocks are not usually markets with as much liquidity as for example the crypto market, or the American stock market or even Forex.

 

[Carson20t]

The answer is a hundred per cent no, but eventually when your portfolio accumulates to about $2000 in investments then you are going to be noticing quite a reasonable amount hitting your account per annum in dividends. One such type of investment where you can make minute deposits is through ETFs.There is a very stable and lucrative venture one can invest in. It is however important to note that you need to do your research and seek advice from a certified financial advisor before diving into this investment opportunity.

 

[Debashis]

Yes, it is possible to profit from investing in penny stocks. However, they are highly volatile and risky investments. Extensive research and analysis is necessary to identify potentially profitable penny stocks and mitigate the associated risks.

 

[Timgab]

Investing in penny stocks can be risky. While they may seem attractive due to their low prices, they are often associated with higher volatility and less liquidity.

Profits are possible, but it's crucial to make over and over research, understanding the risks and also watch out for scams.

 

[Nomad]

Whether you will profit with penny stocks or make a loss depends on what company you have invested in. If you invested in a legit company, you might make a profit as the company begins to make a profit. However, a lot of companies are established just for scamming purpose and if you ended up nvesting n penny stocks of such companies you will lose money.