Anyone into penny shares?

Discussion in 'Finance, Property, Law' started by carlbcfc, Jun 8, 2013.

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  1. Got started earlier and invested in a few companies on the London Stock Exchange Junior Market (AIM) which can be volatile, and news reliant, but there is money to be made. All these shares are either sub 1p, or under 20p. Some great gains to be made below over time.

    So far I have move around a few, but have now settled on a few companies:

    Greka (GDL) Unconventional shale oil & gas driller, invented a way to avoid fracking Advantages of LiFaBriC Technology over Conventional CBM Drilling « Greka News

    Paternoster (PRS) Investment company invested in many very good companies with lots of upside to come. One of those is Bison, who are about to float on the LSE which reflect on the PRS sp Bison Eyes London Float Amid US Fracking Boom

    W Resources (WRES) W is the chemical name for Tungsten. "It's a coveted strategic commodity with multiple industrial uses..." and we have one of the biggest deposits in the western world, oh, and gold & tin. Cookies must be enabled. | The Australian

    There are very informative bulletin boards over on ADVFN, and on LSE here. Type ticker in, click chat, and read peoples research, recent RNS, company info etc.. W RESOURCES Share Chat - Chat About WRES Shares - Stock Quotes, Charts, Trade History, Share Chat, Financial Terms Glossary

    Others worth looking at are:

    TYM flourspar miner. 6p currently, recently been at 15p, but no news has seen a retrace. 100% to be made here eventually. It has a broker rating of 27p eventually

    NTOG Junior Oiler over in the USA. Keep exceeding expectations and share price stays the same
  2. Just out of interest who do you use (share broker) to buy your shares. :)
  3. do you go about buying these shares? its a long time since i looked into share investment methods. can one buy direct on-line?
  4. I had a couple of them - one of them tanked and isn't worth selling at the moment...:)

    I am registered with SAGA Shares and can do all my transactions on line. I'll be interested to see where this thread goes though.

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  5. Popular when I was in Germany.

    There was a group in JHQ who were excited by it.

    I do not think they made their fortunes.
  6. I used to do the penny share stuff early in the 1980s, did very well. One purchase, I paid £2000 for a share at 12p having read that the firm was sound and after difficulties had renegotiated it's finance with the bank, three weeks later they were trading just over a pound each.

    My tip, read the form, i.e. the financial papers, they affect the prices with a positive remark whereas the "Penny Shares Forcast" does not and always treat it like a punt on the Gee Gees, don't invest anything you can't afford to lose.

    I only stopped because I moved here, the German stock system is controlled by rabid vampires, zombie flesh eating tax officials and the banks. The banks are what put me off.
  7. I had 2,000,000 shares in Milwall for about £200 , think I made a massive loss :'(
  8. A word of warning - be careful with chat sites and forums on penny stocks. Comments on forums may be posted by people wanting to "talk their own book" and manipulate the price by encouraging others to deal. This can lead to false markets and possible charges of market abuse if you join in the comment-making.
    The stocks are illiquid and can often move on just one or two relatively small trades. Bid/ask spreads are often quite high so you will need a big move to make a profit.
  9. Brotherton Lad

    Brotherton Lad LE Reviewer

  10. ^

    Haven't dealt with the penny stocks myself, but I do dabble from time to time using online trade sites with money I know will blow on booze or on other useless things. My best picks so far were when I bought Ford, Toyota and BP at their lowest and sold them at a profit - especially Ford, got it at $2.84 and solid it at $11.90 ish.....wish I invested more into it! :). Bought some BP stock when it was being hammered during the oil spill (~$27) and then sold it a few months later at $45. Same strategy for Toyota during the recalls in the U.S.

    The shares of fundamentally good companies will (almost) always go back to higher prices - so take advantage when it's really down for some reason. I am an occasional bit player and never put in more than $2-300 at most..
  11. I remember posing as a rich investor in Leeds around 1994 and going around the banks looking to find out if one could use a bank like a broker and buy a few hundred/thousand pounds of shares and trade them through the bank. I was young and needed the free coffee one winter. Lots of free coffee. Turns out after the stock market crash many banks stopped trading in small amounts of shares. Except maybe Lloyds. So otherwise you needed to go to a broker and they charged fees. I'm interested to try online share trading.
  12. You need to have rules, your own rules and the discipline to apply them.

    I searched every day for penny share firms who were basically sound but were momentarily in the doldrums and who suddenly started to attract positive input from the press and auditors. You have to buy in very quickly there, I did it on-line with an early on-line service. I used to always invest £2000 and attempt to recoup that £2000 to reinvest elsewhere as soon as the shares increased by 50%. That way you soon build a small portfolio.

    With my short term, but keep some stock policy, I always did very much better than my "Managed" Unit trusts with their "professionals".

    Here I buy metals when I have a spare pony, the German share market can disappear up it's Frankfurter hoop for all I care.
  13. Online share trading is very simple and easy to use. Read the small print on charges; some take a custody fee, others waive it and admin charges based on how many trades you do.

    Ensure that the platform gives you access to the markets that you want to trade on.

    Online trading is as safe as any other way, the security process are good and you can see what you are doing, what the book is doing and with most platforms the book is real time. Prices on the statement page tend to have a 15 minute delay.

    If you are long only no need to maintain margin accounts, what you have in the account you can spend. Read the comm. structure carefully as most have minimum cost per trade so try and work with that and some have minimum amount of shares that can be purchased.

    Good way of checking any platform is to google it and complaints, what you see is what you get (most of the time).

    There are many good ones out there but what you put in and what you get out often have nothing to do with the platform!
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  15. Banks charge fees also! - they just hide it better!