Penny stocks [101] | Phil Town

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If you’ve been researching investing, chances are you’ve heard of controversial “penny stocks”. I’m here to help you decide if penny stocks, defined as stocks traded for less than $5 a share and not sold on the major market exchanges, are a good investment.

If you want to learn the basics of investing and other types of investments, click the link above to get my free quick start guide to my Rule #1 investing strategy.
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Phil Town's Rule #1 Investing says:

Hey there folks, thanks for watching today's video on penny stocks. Have you invested in penny stocks before? What was your experience? Download my Investing Quick Start Guide to learn more:

Xiaosong Rong says:

Usually small unkniw companies. May come from dilution.
1, High volatile
2, No enough liquidity (hard to sell)
3, No enough history data for analysis
4, More possible to drop to zero

Benefits: may be high return.

victor c says:

Thanks Phil, you are great educator. cant wait to watch all your videos, I want to learn, I want to learn!

AbDuR rAhMaN says:

10.00 whats my homework

AbDuR rAhMaN says:

how to find the value of the company

Gary Powell says:

Phil, would you please do a podcast on penny stocks?

אבי שקדי says:

Hii Phil
שלום from israel
I like very much your site and your book "rule # 1".i told many of my friends about it.
i had the book from 2006 and had read it a few times and used all the tools that you gave there.i succeeded very good in the last month's but
i want to know in this days which graph's you are looking at to see what the "big investment trust" doing in this days with there investment's and where can i find it?
please help me beacuse i am fear about what will happened to the markets in the next month's,i dont want to stay in the market when the big investment trust will go out.
i hope to see you one day in israel.
avi shkedy

MrAKailing says:

My first year of investing I followed rule #1 strictly. I invested about $2000.00 in Tractor Supply company. I made over 50% the first year! Then, I started falling off the wagon, so to speak. I started to invest a little in a penny stock and I made a little and lost a little. Then, I started reading about another penny stock and it sounded great. It was a good company and they had a great plan. So it seemed. However, I failed a major research area- the company management! I never investigated them. The 'CEO' just kept posting how they were doing well, going to explode upwards, etc. They were going up. I was pumped. I put a large chunk of what I had into the company. Then, there were rumors on stock twits they were a fake company! Turned out to be true! I ended up losing everything I had made in my first year plus some. Tough lesson. I now take time to research company management. 😳

Sri K says:

Thanks Phil, I bought and read your two books, learned more on the rule#1 strategies. Would like to learn more on penny stocks. Thanks for this video.

Gaurav Sharma says:

I'm 3 months away from clearing up all my bad debts, thanks to you 🙂

Fan Rex says:

Hey, according to the study, I found that rule one investment formula is suitable for companies that have
linear growth EPS, for example stores create new branches steadily.
But for companies like Google, Amazon, FaceBook, they have totally different behavior models.
So, would you mind to share some methods/math models about how to get evaluation of these kind of high technology companies? Thank you very much

Mike White says:

man you look hungover AF

Ed Henry says:

Phil. I've tried the penny stock route. It seems to be the quickest way the burn through a trading account . There are a group of "gurus" on the web who promise you'll make a small fortune if you follow their recommendations. Turns out they're the only ones making any real money. Once they send out a trade alert they wait for everyone else to jump aboard then they turn around and sell for a huge profit while the "peons" are left holding the bag . Biggest scam I've seen since I started trade. BUYERS BEWARE !!!

Darwin Martin says:

I recall a time when a big company became a "penny stock" because of an event called the great recession in 2009. I was driving to work listening to the news and heard a statement about certain institutions being "too big to fail." Later that day I noticed that Citibank was on sale for a $1.00 per share. I only regret that I didn't have the available cash to buy 10000 shares instead of 1000 at $1.02 at that time. This wasn't the type of penny stock that is the focus of your video but I wonder if this type of event could create a similar opportunity in the foreseeable future?

Brendon Clement says:

Hey uncle Phil! just wondering what your take is on marijuana stocks? There is alot of hype around them up here in Canada with legalization supposedly happening this summer. Love your videos and podcast Im learning lots!

dennis buckley says:

Great video Phil! I recently invested in a company called Glance technology that appears to be growing quickly. They are based in canada with a service similar to apple pay and pay pal. Im going to do more research regarding 4Ms and see if it would be worth it to ride out the storm of volatility!

Mariam Trgt says:

If there is not enough coverage by analysts, how would you know about the management and other details about the penny stock?

Ruben H. Baca says:

Keep this type of content coming!!!!! need more info on penny stocks since they are almost never covered in books. unless you recommend some?

Jake Tran says:

You released this vid at the perfect time. Thanks!

Manoj Kumar says:

Thanks Phil for sharing your insights. I've just started out learning penny stocks investing.

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