I have had this stock for a few months now, I started with about 12,000 shares at $.026. The price of these shares plummeted to about .0030, so I decided to buy even more, trying to cover my losses. I bought 164,000 at .0025, and the stock dropped again. It now sits at .0006, and I am wondering if I should put even more money into this stock to try to cover my losses. Or, is this stupid, I am new to investing in penny stocks. I could buy like 750,000 shares, making the average of what I paid for the all the shares .00105. That way, I could make my money back a lot easier.

Should I do it? Or am I developing a gambling problem..

a good investor knows when to sell...

you've got a problem my friend...

whats the company?

also, be a rebel and ride it out. just think if they hit 1cent each lol

I never said I'm a good investor, if I was I wouldn't be asking questions about investing on totse. I am a beginner. The company is eeso.pk

well looking at the graph and info from http://finance.yahoo.com/q?s=EESO.pk it looks like your kinda screwed. id keep the stock, just in case, but dont dump any more $$ into it. at least you didnt spend all that much. and if for some reason, the stock does upturn, id get out the second your breaking even

Thanks for the advice, I guess that I already fucked myself hard enough to not dump anymore money into it.

How exactly does one get into penny stocks? sites like trade,or what?

One doesn't. I guarantee you, all the biggest investing firms, all the experienced/knowledgable traders....never ever ever buy anything under a buck. It's no secret at this point, I recently lost a lot of money...I bought a REIT in the $7.00 range and it dropped down to a buck where I sold it. Recently, it's down to 30 something cents. The optimists may think 'hey, great...I can get a 7 dollar stock for pennies on the dollar!' but theres a reason it's trading so low. Because its in danger of going under. Penny stocks are serious buisness. Dangerous buisness. And 95% of the time, its a scam.

Tell me more about this scam.

It's amazing how few people know how to google search. I know you're looking for advice, but if you type in "investing in penny stocks" into google, all of the results are good stuff. And it's probably a lot more credible than what you'll get on totse. Just think of variations of that, and profit.

Here's a link.

On a more contributive note, I've been wondering about "penny stocks" as well. I bought a bit of some stock of companies that were around 2-3 bucks a while back, but they haven't really changed any. But, the greater the risk, the greater the return. If you pool enough money into some smaller stocks, and you know what the company stands for, why it got so low, and what they plan on doing to improve their EPS, then it might be worth it.

Trial and error, my friend. That's the gamble.

Ummm if you have no real reason to invest or trade and you just go on hunches and things you like, that is called gambling, not trading or investing. Investors usually know the companies' fundamentals and understand which cycle the economy is in and try to incorporate their strategy from a top down view. When I worked at a brokerage they owned 0 penny stocks for the 200 million they handled. I wouldn't call penny stocks a scam, but most pump n' dump scams apply to penny stocks pretty much, as it is way way too hard to manipulate the price of a security that is say $30 a share and has an average daily volume of millions of shares.

At this point, you've wiped out just about all of your money, but i'm curious did you learn anything from this? If not just throw more money into it.....

The stock market is a controlled gamble, my friend. You have to use a mixture of hunches and intelligence. Say you see a new company thriving in your area. You go to a town nearby, the business is packed there as well, thriving. You keep your eye on this company for the next month, watching as it flourishes. My hunch would be, this company has something to offer, and everyone likes it. I'm going to invest in it.


To the OP, aren't penny stocks usually like research companies? These are very risky because unless they hit something big, they have a good chance of going under.

I never said you never had to use intelligence, far from it, but if you just make a trade off of a "hunch", you are an idiot. Granted, because it is almost a zero sum game (though still negative because with stocks you have fees AND a bid/ask spread) you can win half the time with luck since markets only go up or down. (Sideways too if you wanna be technical about it). But overall you need an edge to beat the market consistently over time.

Yes, it is a gamble in the sense that everything you do in life is a gamble. You have complete control over how much you choose to risk, where you will enter, where you will exit, and what your plan is when trades go against you. I'm telling you, trying to trade with fundamentals is going to be almost impossible for the average investor/speculator because they will never receive as much news, or as fast as the bigger investors. Trading with technicals is much more simple and efficient. The other main advantage it has, is that everyone sees the same picture from the big wig bank analyst to the lonely first account speculator. NO HUNCHES