Tell me where I'm going wrong

Tell me why people who only have 5,000-10,000 to invest with buy a stock like disney that goes up 5% like once a year instead of a 5 dollar stock that goes up 5% within a week/month? they could be making so much more profit from buying a stock at $5 and selling it for $5.25? that's a 500 dollar profit from investing 10,000?
Surely I'm missing something & if it's just risk, if a trade did go bad why not hold your money in the position you bought in at till a few weeks/months down the track and sell at the same price or for higher profit when it bounces back up?

>Tell me why people who only have 5,000-10,000 to invest with buy a stock like disney that goes up 5% like once a year instead of a 5 dollar stock that goes up 5% within a week/month?
VOLATILITY NIGGA

and when I say they could be making so much more profit I meant they could be making more profit alot more often

because most people don't actually watch the markets and just buy some shit that won't bust overnight

yeh but why not just watch the market during the day wait for it to go up to even 3-5% and just sell whilst the market is open?

because you are never sure if its going to go up 3-5% or go down 3-5% and you are tying up your money into the market

like what if you are waiting for a return to 'normalcy' and the stock keeps dropping? when do you sell?

yeh but isn't investing in resources and stuff like energy/mining really cheap like some prices at 0.50? I've seen mining go from 0.42-0.56 within a day of trading on the ASX
why not buy 5000 dollars worth even at 0.42 and sell at 0.5 that's 900 dollars profit in a day after shitty aus brokerage fees?
and yes I see how people invest more than 5k and are scared about losing their money but most of the time in the future it does bounce back up to the price you buy at if it's a good company and if you read into the company/reports can't you risk that money depending if you feel it will go up more than it will go down and maybe put a stop loss on it?

risk
investing in a shitty penny stock is far more risky than established and dominant companies
look at ADV. they released a good announcement and their sp is down by like 30% if not more. who could predict that?

consider these two points
- the majority new of businesses fail
- if you buy a $10 stock and it drops 50% to $5, it now needs to go up by 100% just for you to break even.

Firstly, time horizons of invesment. Sure, it could go up a lot, but if you need that money in 18 months for a house deposit and it goes down, you're fucked. You can either sell at a loss or delay your plans further in the hopes it goes up.

Secondly, you answered yourself - risk. I've been hit by a few small cap firms which have dropped to less than a quarter of their value and stayed that way for years, and I have a long investment horizon so I was willing to hold for a long time - but eventually it became ridiculous to hold some of these companies that had lost so much value and were clearly not going to get it back.

That micro-cap shit can just as easily lose 20% in a week.