Penny Stocks Are For Trading
On average penny stocks lose value over time. Buying penny stocks and holding on to them is risky for a few different reasons. Finding solid information on these companies is often difficult. The requirements for penny stocks are less stringent than they are for other stocks and often public information on these companies is scarce. They are also quite volatile, and their volatility can be quite difficult to predict. Then there is the complication of volume. Penny stocks are often thinly traded, so it can be more difficult to buy or sell the amount of shares you would like.
So why do people still dabble in penny stocks? If you can learn how to day trade you can reduce the risk of time by not holding onto them for too long and use their volatility to your advantage.