Scams in Trading Penny Stocks is the most dangerous phenomenon in trading and investing online.
A lot of beginners get attracted to penny stocks. First because penny stocks are cheap and second beginners think they can have huge profits easily. The fact is that trading penny stocks is very risky because the price is very volatile and because many professionals manipulate these kind of stocks because it does not need a big capital to change the price. Scammers use a one page websites and forums to ask traders to buy penny stocks. When the beginners are buying the professionals are selling. Sometimes scammers ask for membership which is more dangerous. Scammers use new ipo stocks or old ones. When beginners lose money like $50 from $100, The thing is that they don’t know that 50% or more has gone forever. So just think why are those penny stocks are cheap? They are cheap for a reason. All mutual funds and big traders do not invest in them and they dont trade them.Because most of these penny stocks are very small companies with little earnings and most of them are new. They dont go through the test of time. Well thank you very much for watching this video. If you have a question or just you want to comment just do. I will be glad to debate this subject. Please subscribe to my channel for further videos. Thanks for watching.