Are Penny Stocks all scams?
Can you make money off of Penny Stocks?
Sure, but you need to not be stupid. The best penny stock is no penny stock imo.
So scam or not, they represent a (albeit very high risk) opportunity for the savvy investor. I’ve traded penny stocks for years and had some big successes and some big flops.
Keep in mind that most penny stocks are driven by “stock promoters”. These “promoters” are paid tens of thousands of dollars (sometimes more) or given large swaths of equity to promote stocks to their penny stock newsletters.
99 times out of 100 if someone recommends a penny stock to you, they are being paid for it. And they must (the SEC is pretty good at cracking heads on this) disclose any payment or equity they receive for promoting that stock. The best penny stock broker is Zecco.
So, because someone is being paid to sell you something, does that mean that all penny stocks are worthless hyped pieces of crap? Most of the time, yes. But the reality is a stock isn’t worth 10x earnings or x times book value. That’s a bunch of bs. A stock is worth whatever someone will pay for it.
Penny stocks are not for the timid investor. You need to know when to get out, and how to keep your emotions in check. Most penny stocks never come out of the pink sheets.
So, investor beware. Use Zecco for trading Penny stocks.