Penny shares - The Book-keepers Forum (UK)

adi2402 · Senior Member

Penny shares

Rhianrach · Expert

What are they?

I'm wondering if thats what some banks have done with our company, where they have bought shares at a low value as part of their commitment to underprivelaged people.

Dalbir · Senior Member

Hi Steve

Penny shares.

basically you buy 1000 shares which are worth lets say 10p per share for £100, then they double in value to 20p, your quids in.

If the company suddenly grows, shares could go up to £3.00 per share. loads of money time.

then again, they could go to 1p a share, your quids out.

Anyone remember Marconi shares going down from £12 to a penny (now part of Ericsson me thinks)?

Dalbir

adi2402 · Senior Member

yeah thats the basic premise, although the swings are generally much less dramatic, but here's hoping.

semsley · Guru

As Dalbir says, can be big gains or big losses, I thought about dabbling in these about 30 years ago but didn't. You really need to know what you are doing and reseach thoroughly before investing.

adi2402 · Senior Member

you do if your in for big money but a lot of people, myself included just dabble in shares as a hobby, i usually spend a couple of hours or so a week looking at various info. does not cost to much time or money at the level i deal in.

Shamus · Forum Moderator & Expert

Hi Adi,

I think with penny shares you either need to be day trading on active shares or know something that the market hasn't spotted.

I've made money out of pennies but only where I've been trading large volumes and often trading several times per minute.

If you've got a Barclays trading account I think that the standard is £7500 credit and you settle up at the end of the day so, so long as you get out before close of play you shouldn't have to actually find £7500.

Be very wary of holding penny stocks as a share can be shooting up and then next morning it's suspended on the market and your money's locked in. Sometimes forever.

Pennies also have a tendancy to merge 10, 100, 1000 int 1 and generally they very quickly come back to trading at the same amount they were before and your money is only worth 1/10, 1/100, 1/1000th of what it was previously.

Of the pennies the only one that I've got left now is OXB (Oxford Biomedica) as I have belief in the company but it's free money that's invested as I've bought and sold the to a state that it's all profit that's invested so even if they fold I've not lost anything.

I suppose that one could argue that my RBS shares are now pennies but I'm not even going to go there as I'll end up in tears!

I think really to make any money out of pennies you need to set up an account on MoneyAM, another on Barclays and sit there all day with two screens with Barclays ready to buy / sell whilst you watch the blue's turn red and vice versa on MoneyAM.

If you let it it will take over your life and it's like gambling in that you'll find yourself doubling up to halve your losses, holding onto stocks that you shouldn't, and if you're really lucky probably just about breaking even with the few exceptional rises justifying the losses.

All in all, whilst you can make money at it I wouldn't risk anything that you can't afford to lose.

Just my two penneth and hope that I've have you a few pennies with that!

All the best little J.R.

Big J.R.

adi2402 · Senior Member

hi, i have the barclays account you mention above.

Not really into day trading myself, more into early bird oilers at the moment, but made a little bit on millwall last week, so alls good.

I find the spread kills me on my potential day trades. So i'm more a month or two at a time guy but just been trading the last 18 months or so. As you say, could easy take over your life if you let it, but interesting little hobby for now.

AllenMass · Member

Penny stocks are available easily in the market and you can own them easily as common stocks. Once you have decided on which card you would like you will then complete an application form with your personal information depending on what is asked.

RSBookkeeping · Veteran Member

Hi,

I also hold quite a few in RRL and have done very well out of them. I've traded in penny shares for around the last 2 years and havn't made any major losses (yet). They helped pay for my wedding earlier this year, although the missus doesn't know that

adi2402 · Senior Member

Well done,

I kept my RRL at an average at low / mid 3p so on to a very decent winner at the moment. getting to 11p in the next couple of months does not seem unrealistic but as I we are on a 100% profit I can sweat the daily movements.

Good luck going forward.

(this is quite an old thread that been resurrected i see)

AllenMass · Member

I'm interested in stocks, options, and options on currencies. I was about to open an account at tradeking but then I noticed they don't deal in foreign currencies.

AllenMass · Member