I know the couple of traders which swear by these things. I’m not articulate about rookies; I meant semi-experienced traders with similar to 75% of their portfolios clinging to OTC companies. Most of them never have any distinction what-so-ever. I assimilate which the little folks when they have been starting out will consider pennies have been the “good buy” as well as the association “seems similar to the great idea” though customarily after the month or dual they comprehend poor bonds have been the shot in the dark.
All great answers!
How to Invest Money to Make Maximum Profits
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The same reason people play the lottery
because it’s not investing it’s gambling:People like to gamble.
I think it’s a highly optimistic attitude and personal greed, that one could double or triple their money in short time.
Penny stocks are a shot in the dark because the company usually faces liquidity issues and have very limited reputation. But hey, the stock could shoot up just on one snippet of good news…unfortunately, it could go the exact opposite just as easily.
When a 100 dollar stock goes up 10 cents it’s no big deal. When a 10 cent stock goes up 10 cents it has doubled. They forget that it going up 10 cents is highly unlikely.
Others get turned on by the idea of buying 10,000 shares of something.
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