Could I become a millionaire by age 20 by investing into penny shares by momentum investing?
I am going to be 18 soon. I want to start investing into penny shares starting with a few hundred pounds, and because some penny shares move up as much as a few hundred percent in a day, I’d like to invest into some (Hopefully the best ones with the biggest potential!), pull out and move onto the next one and reinvest into it, pull out, move onto the next, pull out and so on until I reach a million pound fortune. If I do this successfully, could I become a millionaire by age 20 if I get it right, do my homework etc?
first of all, a penny stock is any stock less than $5. many penny stocks are also scams. they are typically on the pink sheets exchange or OTC bulletin board exchange which do not have to file any financials with the SEC and are therefore not properly regulated. as a result, a lot of people set up fake companies that are worth "pennies" and when anyone invests in them (buys their stock), they "bankrupt" the "company" and take all the money. not all are illegitimate, but you run a huge risk when trading off of the regular exchanges like the NYSE, NASDAQ, S&P 500, etc.
in reality and on the safer and legit markets, rarely do more than a couple of stocks edge up over 30% gains in one day, and it’s typically not one company you see every day, but random companies each day. you would have to day trade stocks and to get to a million dollars not only would you need to be incredibly lucky, but you’d also need quite a bit of money to start off with. chances are, though, you’d lose all of your money long, long before you even get close to a million.
ur fucking kidding me.
Sorry to bust your bubble, but I dont think this is realistic.
Sure penny stocks can go up a lot it one day, but the trick is not know WHICH penny stocks will go up for that day.
You would have to be right SEVERAL times in a row to turn a couple hundred into millions in that short of time.
Sorry mate, but you have a better chance of winning the lotto.
Extremely risky! You could make a million. There is a far, far higher probability that you will lose every cent you own. Most people who do this get hung up on the big potential rewards, fail to do their homework, have inadequate investment knowledge and experience, and blow every cent they had. These are markets so volatile that people with extensive knowledge and experience lose their shirts!
BTW, in this case, it is extremely difficult to do your homework since there is so little info about these little penny-stock companies. Also, for every stock that is a legit company, at least 2 are scams. And for every company that hits the Big Time, 9 bite the dust & die.