All all the nano stocks nothing but Scams out to get me?
Is it wise to buy Penny Stocks?
I have made a lot of Money on Penny Stocks.
Lost a Bunch on futures and Options.
There is no correct answer to that question.
I would be wrong telling you that it is not right to invest in a Penny stock as much as I would be wrong telling you that it is right to invest in such stocks.
If you want to get rich from the Stock Market, then there are only 3 ways.
1) Own an Investment firm, like a Mutual fund, or a private equity fund and Invest other people's money. eg: Warren Buffet, George Soros
2) Become a Stock broker and make money buying and selling for others. You always win whether someone buys and sells at a Profit or a Loss. eg: Charles Shwab
3) Just like me, become a Penny Stock Investor.
The Oracle of Omaha became the richest Man in the world several times in a row by making 25% return on his investment consistently.
Now that is a Whopping $ 2500 on a $10,000 investment, which is what an Average Man like you or me can invest to begin with.
If I had a Billion bucks to invest, there won't even be enough Penny Stocks to invest, and even a 10% return on the bluest chip would net me 100 million a year.
But even if I were to beat Warren Buffet consistently on $10,000, when will I ever make my million if I were to follow the Guru and start investing only on the BPs, Lehman Brothers, Enrons and GMs of the world.
Yes, my Friend, investing in Penny Stocks is the only way for a common man to make the Millions from the stock Market.
That said, one should not just jump into the Band wagon and start buying up all penny stocks.
Do your research like all the Big Investors so, but concentrate your research on penny Stocks.
Keep very strict I/O rules. You should very disciplined in your entry and exit rules.
eg: Always be Out at 30% drop and always keep a 20% stop loss once you have crossed 20% gain.
Always invest in at least 1o different stocks.
There are several sites out there that does the research for you.
You can go join those sites and get heir recommendations.
Instead of blindly believing in their forecasts or their past forecasts, join and wait for Month and see how they fare.
Then pick some of the stocks from industry you understand, and look up that site and the Industry.
Information are free and a plenty.
For your own opinion, and take your own decision.
And Keep strict In Out Rules