Should I start investing in AI penny stocks?
Asked 3 years ago
HI, I just reactivated my account after a really long time and looking to start trading again. Is trading in penny stocks, namely AI and opioid addiction treatment, a viable way to go?
Osasere Okunloye
Tuesday, October 19, 2021
Penny stocks are a bit risky with less security, because they are not required to document with the security and exchange commission. You have to do your due diligence, make sure the company is a legitimate one. Lastly, you should be patient to play the long game. That is when you can reap the rewards of your penny investment.
Andrew Moran
Wednesday, October 20, 2021
While AI and opioid addiction treatment stocks are terrific investment opportunities, over-the-counter (OTC) stocks are problematic.
The problem with penny stocks is that they are highly illiquid and prone to pumps and dumps.
It is difficult to find an investment security in the pink sheets system that can yield tremendous returns. It can be like striking the lottery.
You can find exchange-traded funds (ETFs) that invest primarily in AI that can provide a better bang for your buck than worthless stocks.
That said, if you are still interested in penny stocks, you need to invest for the long-term and find companies that have terrific balance sheets.
For example, in the steel sector, there is a company called Black Iron. It was trading a few pennies a year ago, then it soared to as much as $0.76 (now it's back down to around a quarter). The moral of the tale is to bide your time and wait with penny stocks.
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