Penny Stock Investing? Burn Your Money Instead

I could give you my standard metaphysical bent on money, success, and wealth. But not today. Let me get to the point: If you have a choice between investing in penny stocks - i.e., shares are worth less (worthless?) than a dollar - or throwing your money into a bonfire, choose the latter. At least you'll get some warmth as you watch the sparks and pops of your hard-earned cash burning. Having invested $3000 into a mining penny stock, watched it go up several cents (about $600 increase in my holdings) in one day, then thrown in another $2000 of my job bonus money, I yanked out my hair when the stock dived down for the next five market days. At this point, I called up the company and got one of the top dogs, who was chuckling on the phone while eating a peanut, as he told me. Something about his tone of voice, something about the way he evaded my questions suggested that maybe he was chuckling at me.

So, now this is only my opinion, but there are only three reasons to invest in a penny stock:

(1) You own the company.
(2) You know someone that owns the company (but this is dangerously close to insider trading).
(3) You like to throw away money. (Instead, throw some my way, and I'll invest it for you.)

Enough said.

(c) Copyright 2005-present, Raj Kumar Dash, http://smackeroonies.blogspot.com

Technorati : day trading, investing, penny stock, stock market