 Penny stocks What's up money geeks mr. V here welcome to another video guys so in today's video I want us to take a look at penny stocks So if you look at the definition of penny stocks, it means there's a stock that are trading under five dollars But most people if you ask on Main Street, they'll probably tell you that penny stocks are stocks that are trading under a dollar So let's go with the mainstream definition which stocks that are trading under a dollar So should you or should you not invest in penny stocks? So this is a question I've gotten a lot and so I just kind of want to clear it out and give my perspective as to where I stand On this topic. So let's assume that penny stocks are stocks that are trading under a dollar You're thinking to yourself like should I invest in these stocks or should it's just not for me So Investing in penny stocks. There is three common options that we can actually look at right first one would be people that did trade penny stocks People that swing trade penny stocks and people that do both So I four in the category of people that do both I do a day trade penny stocks from time to time on webo So if you don't know that I actually have a video coming out that I talked about You know how I do trade on webo and I make two hundred and fifty dollars a day So I'm gonna link that video in the description below So and also if you want to use webo there are we will currently has a promotion way if you sign up right now You get two free stocks value somewhere between two dollars and $1400 so again, I'm gonna put the link in the description below So if you look at people that they treat penny stocks, so they look at these stocks in the morning They have what you call a gap scanners that look at the volume and movement of the particular stock that day So the higher the volume and the percentage change You know that people are gonna be looking at that stock and the price will go up and down during the day And the ones that have high volume you're gonna see a ton of interest people would go in and trade those and make money They don't plan on holding it They just go in at the right time buy it to squeeze up a little bit to take their profit and they get out And so if you are slow You try to invest or they trade those kind of stocks if you're not fast to go in and out You get caught with these penny stocks where it goes up and you you delay it goes down in your stock It just keeps going down from there. So you have to be quick if you're day trading it The people that shrink trade it so you can find the good penny stocks you can shrink trade So let's take for instance with the covert Research going on right now to try to get vaccines. There's a lot of pharmaceutical companies that are working on the vaccine That we don't even know about so if you go, let's say you go in the pharmaceutical sector You see a screener for instance, if you go on either Finvist or even a weebo you set up your screener to find Stux are under a dollar a certain volume and stuff like that those who show up you pick a sector and they'll show up So you can read the profile of those stocks and see if they are working on something interesting They coming up with some sort of a new vaccine new technology or just a new way of approaching something that we already know That's not mainstream yet. So those are stocks that could be interesting So you can look at that say hey, I want to shrink trade this so you can say you can invest $50 with the potential of making three four five six hundred percent in return even a thousand percent in return If that stock just gets some exposure so that would be for people that want to swing it and then for people that do both like I said you can in the morning You can buy and sell and make money and then others you can just look at them So hey and anticipate that if this target some exposure, it's gonna go higher So then you can buy and hold for maybe I don't know a month two or three and then you get that three four five hundred percent return So if you invest fifty dollars, I mean you stand a chance of maybe making two three four five hundred dollars from your fifty dollars And the thing here is that you want to minimize your risk as much as possible. That's why I am not encouraging you To go take majority of your portfolio and dump it in penny stocks The idea here is that you should be smart about it So let's say you have for instance a five thousand dollar portfolio and you decide to I want to take maybe a hundred or two hundred dollars and Invested in in penny stocks now You can find maybe three or four penny stocks and put fifty dollars a pop in each of these stocks And so again, we're talking about stocks. They're like ten cents a share So you buy ten or fifteen cents a share for this kind of stocks You put in fifty dollars with the potential chance of that fifteen fifteen cents turning into maybe a dollar a dollar Fifteen because if you go from ten cents to a dollar, that's ninety cent Gain on each of those stocks, which is really ridiculous. Can you go from from ten cents to zero? Yes So you that's why but in this case you're increasing your chances of making profit Minimizing your risk because you only putting a really tiny bit of your portfolio If not, just I mean just a pinch of it into those stocks again, like I said, if you have a five thousand dollar portfolio I would maybe invest two hundred dollars in penny stocks and then the rest I'll put them in really good Save blue chip stocks and just hope for that growth. So So back to the question again Shoot or should you not invest in penny stocks number one that I want you to consider is you what I'll call your risk tolerance, right? How much risk are you willing to take? We'd say your two hundred dollars So you want to invest in if that money disappeared tomorrow if that company went bankrupt, would you? Just move under a bridge which you not be able to pay your bills because of that If that's your situation then don't even dare, but if you feel comfortable that well I'm gonna take a risk with two hundred dollars if nor it's just like you go into the casino and put it in a slot machine and In just a fraction of a second that money is gone. It would be the same thing So if that money disappears, you'll find you can take that risk But if the returns came back three four five six hundred even a thousand percent and then you sit and smile So that would be the approach that I want you to so again Do some research pick a sector for instance, like I mentioned from a city career. You can take oil and gas You can take technology and find a company that you know that has well called penny stocks That's working on something interesting Something that's gonna change the way we do things today something that is leading in that it's gonna be a leader in that space Again people might not adapt to that particular technology or that particular research at the time that you're looking at it But if you feel that oh, this is something that I'm interested in this is something that I like Because again look at a company like Tesla I'm pretty sure when Tesla came out when Musk started telling people about Tesla a lot of people was like no electric cars. I don't think that's possible. Are you gonna charge it? How are you gonna just asking all these questions which help him develop what he was gonna do But so to you that's I want you to do like hey Can I relate to this new thing that can that relate to this company is what they're working on? Is it important to me then I would want to swing that kind of a company Otherwise, you could just day trade it. I have no Attachment to the stocks some of the penny stocks that I day trade and some of them are Chinese companies Which I don't even give any Attention to I just look at them at a gaping if they're gaping you go in take your little profit and get out pretty much so Do research? Ask yourself the question if they think they're working on is something that you're interested in which you buy that particular thing Would you see you using it? Would you see somebody in your family using that and then you can swing those? Do you see it changing the world that we live in or changing the way we do certain things? Do you see it helping human beings? Do you see it helping the way that we go about doing things so from agriculture to technology to teaching? Just find something that is working on making a difference making a change just some of the companies that I would personally swing trade So question of the deal. What do you think about? Penny stocks. Do you think it's a very very high risk and you get remember high risk high reward That's to deal with penny stocks, right? So you put $50 you can lose $50, but you send the potential of making a thousand dollars from your 50 bucks So what do you think about them? You think mr. V penny stocks are stupid? I would never touch them or I'm a risk taker I'm gonna take my chances with penny stocks to potentially become a millionaire again If you have any questions or comment, please just leave them in in the comment section below Remember that investing in the stock market is a risky business So always do your research and make sure that the money that you're investing is something that if you lose You are not gonna move under a bridge. You're not gonna be homeless and as always guys Stay motivated You