How much do you put into penny stocks?

is it pennies? Hundreds Or Thousands?

I don’t personally trade them all that much, only play amounts here and there. sub £100.
The thing which bothers me a little with them is liquidity. I worry that there might not be enough buyers come the time I want to sell.

How much do you trade? :slight_smile:

I’d say that it should be “as a percentage”. It’s not the same to put 1000 Euros into penny stocks when your portfolio is 2000 than when it is 1 million euros.

My view is that it depends on the stability of the rest of the portfolio. I’d currently say maximum of 5% into penny stocks or 10% if you have fully researched them and are very confident. However, it depends on the rest of your portfolio.
If my portfolio was a pretty stable portfolio, lets say spread around, a 60% World ETFs ETF, 10% Small world caps (5% Emerging Markets if the World is exc EM), 2% corporate bonds, 4% gold and other commodities, 6% REITs and 8% Government bonds then I’d be much more confident investing 10% into penny stocks, than if the remaining 90% was invested in a very narrow selection of undiversified stocks (eg. Just investing it in Tesla, for example).

Currently I am mainly invested in individual stocks, but they are very diverse, excluding Bonds (and limited REITs) and I am probably around the 5% mark of investments and the 10% mark of portfolio due to the disproportiate growth of my main penny stock.

Maximum I have done is $200. Except for Greenwhich Lifesciences which was an exception and I did around $1000, Doubled instantly and I pulled out. I know it is once in a year kind of thing. I don’t think any stock will do that again… so mostly less than $100. I’m still trying to figure them out and the safest bet. I think most activity is in the pre-markets and post

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But would you do $1000+ on a single penny stock? if we were to put a number to it

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Have you ever thought about reinvesting that “free cash” into more penny stocks?
Spreading it out to say ÂŁ50 per stock ?

I wonder if the net return from spreading it would be higher, and also less individual risk per stock.

I don’t think I’d be tempted to drop £1k on a stock myself. I’m quite risk averse though.

The problem with most of them is that they are pump and dumps… Checkout stockwits. There is a lot of pumping going on there. And then when the market opens they dump the stock. They buy pre-market, and sell when the markets open… It’s a very dirty practice so i can’t buy any penny stock without any news related to it that i agree with

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Yea.
I think that’s what annoyed me a bit about them, was there wasn’t really much repeatability with them.

I’d probably rather earn less on the S&P500 - or DAX etc… but know that liquidity isn’t an issue and you can earn on that everyday, rather than once in a blue moon with penny stocks.
(That’s the idea anyway lol)

Yeah one thing that’s been giving me good returns though are IPOs. Not the hotshot ones. The ones people don’t talk much about… Like for example i took a position in Wunong Net Technologies… I’m currently up 40%… since yesterday… Thats good enough returns for me so will be selling as soon as i notice a price drop

I did a few earlier in the year, made tiny amounts though so never pursued it.
:v: As long as your making money - roll with it! :smiley:

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Currently a total of ÂŁ7k into GGP. And a few hundred ÂŁs into KEFI.

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That’s a lot of risk man. But i see it turned out well
… Risk vs reward

GGP is not a risk anymore though. At least in my opinion as a LTH. Good things are coming to those who do their DD. Thanks to @Scrooge_McCodf putting me on the path

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will take a look and take position if convinced

im new here, how do you follow people?

Put how much you are willing to lose. Sample: I put 100 in LK while ago made 600. Then put 500 on IDEX made 2k. Really good, right? Then I put 1.4k at VAL and lost ALL!!! I’m new on stock market and I felt really bad after that (actually I still holding VAL, no hope but still there). So, end of the story put what you feel comfortable and move on.

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Start with the works of Peter Lynch. Then determine what type of investor you are. In an ideal world everyone would learn from other people’s mistakes however, most of us learn from our personal mistakes.

Determine if you are a trader or investor. If you’re a trader, go on Twitter and follow people (e.g. Yates Investing, Zack Morris etc) as that’s where half of your job is done (you then need to do your own research to get a conviction into the upside potential).

If you’re an investor then you need to find everything you know about the company and see its potential value long term. Being AMD, Google, Amazon, Tesla etc. Then hold long term and be smart about your money.

Be careful with trading as now there are a lot of influencers in this “field”. Do your own research.

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Sounds Reasonable… that’s a great way to put it

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:trophy: GGP and KEFI

Yeah I put way too much into AIM and penny stocks in general. I like the higher risk higher reward, easy to mess up if you don’t know what you’re doing, and easy to mess up if you do :sweat_smile:

My other AIM is KOD which I’m on the fence whether to cash out or hold for a year or two and see where it goes. Just need T212 to fix the quote system (we’ll need them to ditch Bloomberg)

My US penny stocks are no longer under $5 with LAC and FCEL.

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Somewhere between 20-25% but it’s not that easy to follow AIM market, not as easy as following big names for sure xD and as @phildawson mentioned data for AIM which T212 is getting is at least not the best so you should search somewhere else for it

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