Oh believe me...I hear all the talking heads ranting about how healthy our market is, how our economy is gettiong better and etc, etc, etc, and I really can't help but laugh and wonder exactly what they are looking at.....
As for the penny stocks...sure some play them because they want to attempt to make up some losses, some play them because that is all they can do..they dont have the resources to buy 'real' stocks, so they gamble with the pennies...others are fairly diverse so gambling on a few pennies can be a good thing IF you catch the right one at the right time.
As for why the penny stock players act as they do...it is fairly obvious and happens on most penny stocks...people BUY, them PUMP, PUMP, PUMP, while selling into any pop, but posting they are buying not selling, in an attempt to dupe buyers to buy their shares before the inevitable plummet most pennies take after a pop. One thing I really don't understand. You would think people got smart 5+ years ago and realized that playing follow the leader on a message board, especially penny stock boards, is usually a quick ticket to the welfare line. Yet here we are, almost 6 years after people should have learned, and I think many have learned...but on the penny stock boards, there are still quite a few naive investors that have not learned and they play follow the leader when somebody they dont know posts BUY NOW..GOING TO THE MOON....I imagine those people will eventually learn their lessons the hard way, unfortunatly. What I also dont understand is dont people do DD/research anymore?? So many penny stocks have risen high and then fallen harder..very few go up and stay up.....dont people see this?? And if so, why are they stupid enough to buy pennies when they are on the high side, knowing the stats say it is more then likely going to fall hard..not all..but yes, a far larger % of pennies never succeed then ones that do...yet people dont know this and buy based on what a message board poster says? I guess people see a penny stock that goes from .05 to .30 and see the massive gains they missed...see all the posters talking about the next stop being .75/$1.00, and they jump in for fear of missing the train..what they dont realize, is they already missed it if it has gone up a large % and it may continue up, but is more likely to blow it's engine and get derailed....There are some legit pennies....but one must look hard and do thorough research to find them. Once a penny is being pumped on the message boards, you are probably already late to the party. |
