Usually I just ignore these promotions. This group has been unusually persistant, "Wall Street Penny Stock Advisor": http://visitor.benchmarkemail.com/c...NxwTY6dxpqO8H89RMA9d3Dy2vOy32N&relid=32169A02 I guess the fact that they received $150K for the promotion may be indicative of a bias of the promotion. Is anyone on this board having luck with their gold mining stocks?
I have not had too much, the direction they go in the day varies directly with the price of gold, but most of mine are lower than they were a couple months ago.
I've tried investing in penny gold stocks, with mixed results. I didn't want to go through life without trying them. But the better quality gold stocks are probably the better bet.
The ONLY good things that come out of penny stocks is day trading. You must know what you are doing. Do not hold these POS overnight.
One of the many problems with non-marginable stocks is there are very few that are legitimate. Sure there are some sound gold juniors that started out as penny stocks, but probably less than 2%. The other problem is that you have to have more than $25K in your brokerage account to "day trade". Therefore, if you made a quick 10% and got out, you can not sell your next stock purchase for around three days. Why I would warn anyone about these crappy stocks is that the discount brokerage will not do it. You could go from $250K to $250 in the account, and you will never get a warning in any way shape or form from the brokerage. Unbelievable. Half the time the brokerage workers are just watching their stocks and fielding mundane calls for orders--and they can't give you any sort of warning??? I know it's a legal constraint, but quite shocking nonetheless.
A good friend of mine has invested $20,000 in penny stocks over the past 10 years. Last I heard the stuff she bought is worth about $200. I am amazed that she still holds this stuff. Fortunately she's wealthy. But her story has been a warning to me, and I have never owned a penny stock in my life. I agree with the above posters that day trading is probably not so bad, but never buy and hold these things, most end up going to 0.
Don't leave food out for the vultures. It's a market that is completely rigged. I'm sure the high frequency traders are ripping suckers off in the penny stocks as well as the others. It's like taking candy from a baby.
Don't forget also that there are a lot of Canadian companies that trade in these markets in the US, so they aren't all junk. Two pretty respectable junior gold exploration companies that come to mind are Minera Andes and Lexam VG Gold.
Penny stocks (OTC stocks) are high risk investments, they should never be held and only played by technical experts. They are NOT for amateurs. If you just want to play gold stock, I like IAU as a quick, flip stock. Buy on the dips and sell when it goes up. If you're into stocks, join our forum: http://www.stockmarketcats.com
Your odds would likely be better if you put you money on "black" (or "red")...roulette reference. If you were interested in mining stocks before seeing this ad, I would recommend a "no load" gold mutual fund (with minimal expenses)...and go slow until you have some gains. Review the fund's portfolio and monitor which stocks do well and which ones don't. That should be a good focal point to begin learning about them.
I doubt many people here actually own a gold mine. That is quite a position to be in and no doubt gives you a lot of insights on both physical production and stocks. If you have any specifics to share I am sure folks here would be interested to hear. :hail:
I for one am more harsh about any OTC stocks. I would stay away from even day trading. Day trading is a zero sum game, and you are playing against MIT computer graduates, Wharton Financial professionals, but even worst insiders. ON the outside looking in you are almost always sucker money for these people. If you wish to invest in gold stocks, invest in proven companies, there are many around, and if listed on major exchanges have much tighter controls over what information can be acted upon. You still should pay attention to insider trades, which is public information, but at least on this playground you have a CHANCE. Chris
Medoraman, you are not just playing with the top U.S. brains and computers, you are playing against those of other countries. I don't exactly know what the rules are on people from other countries accessing stocks in North American exchanges, but I'm sure they could find a way around it through proxy agents with accounts they can access. Finra lists how many shares on a given day are being shorted; even on the penny stocks it is large percentage.
I don't daytrade or pay much attention to insider trades, but they are only two tools in the investment toolbox. In the big picture, investing in stocks is an intellectually interesting game that isn't too hard to win if you come prepared with the correct training and mindset. A degree from MIT, Whatron or other major schools can't provide that. Warren Buffett once described the problem as being similar to a group of divinity school students earning advanced degrees in theology only to find out that the only rules to the game were the 10 commandments. I think anybody who can read a financial statement and studies some of the good info about value investing can beat the computer geeks and elites born to the right parents, and derive both wealth and personal satisfaction from doing so.
