Buy Penny Stocks?

I think the allure of today's stock market as far as people who buy penny stocks is that they are looking for an opportunity to make money in stocks fast and without a lot of money. While I guess anything is possible, the actual facts as laid out by Investors Business Daily show that the best performing stocks are those that are actually over $30 a share. Nonetheless, it's still a hot topic for a lot of investors because they can experiment cheaply.

I guess if you are looking at buying penny stock online, I'd suggest that you check into a guy who went to MIT named James Connelly who says buying penny stocks made him a millionaire. While that may be true for him, the average investor doesn't fair as well. If you are going to do it, then you might as well check out a stock market investing strategy like his.

Personally, though, I am not interested in looking at even the best penny stocks to buy because it is probably an area of the market dominated by speculators. And, whenever there is money to be made, you can count on them showing up. I think we've seen that even though the market is regulated by the SEC, they obviously don't do a very good job of protecting investors. Like any regulations, is more about disclosure rather than making the rules fair for all. As long as we told you you could get screwed we are off the hook kind of thinking.

The thing with learning how to buy penny stocks or buying any stock for that matter, is that every stock purchase we make has a risk of loss. Why buy stocks that are junk and easier to manipulate because of their market capitalization. Stick to stocks that show strong earnings, strong sales and strong fundamentals. If it turns out that the penny stock you found has strong fundamentals, then maybe it will work out.

While I haven't tried James Connelly system, who am I to say that his system doesn't work. You might click this link to check out the Penny Stock Prophet system which made him a millionaire. If you do, report back here and let us know how the system works for you.

In the meantime, I'll keep you updated on my progress as follow the CANSLIM investing strategy here at Stock Market Investing Today.