Penny stocks are fucking garbage, and no one with any sense should contribute to the VAST majority of those markets. At one point in my life, I had a lot of fun trading that garbage until I realized two things:
1. I was a way bigger fish than the market could handle. It would take me days to liquidate positions that I had built up over a month because there simply wasn’t the liquidity that was required for my bankroll to flow in and out of the market without actually making the market. This was a blessing and curse; honestly, the lessons I learned here were extremely valuable for Cryptocurrency. (Crypo is/was this same issue times 100.)
2. Stock structure can change with a few signatures and fuck shareholders beyond belief. This can also happen in Cryptocurrency & Bitcoin, but people don’t really like talking about it & so far so good.
I did, however, find one sure way to make money while trading penny stocks. It required using ETrade’s platform.
ETrade would give new users “500 Commission-Free Trades” for signing up. What this actually meant was that ETrade would refund your first 500 trades the day after your trade.
I found that if I bought 500 shares of company ABC for $1 per share. ETrade would charge $500+$9.99 the day I purchased the stocks. The following day the refund for $9.99 would be added to my account.
I found that if I sold 1 share of ABC for $1. The most the ETrade system could charge me for the trade was $0.99; however, the following day, the system would still refund the $9.99!!! $9 profit from a $1 stock after one day of holding is a pretty awesome deal.
Each click was $9.99 for the first 250 clicks and then the pricing changed, but the same logic applied.
The lesson you can learn from this is to “Audit fucking everything”. It’s unreal how many millions of people don’t audit a fucking thing.
You maybe shocked to see what you find and what doors it can open for you. 🙂
(PS: ETrade fix this issue without giving me a fucking penny. Lol RIP, o well, and I didn’t get kneecapped either… so that’s a plus!)