Invest $10,000 in $4 - $20 stock

>Invest $10,000 in $4 - $20 stock.
>Wait until it's gone up by 1%
>Cash out
>Repeat

What's wrong with my logic?

Nothing technically

it may never go up 1% user

Surely the odds are in your favor that it will eventually gain 1% on its original value if you wait tho?

Not trying to argue this point, I'm just a noob looking for someone to explain to me why this is wrong.

brokerage fees, taxes

but De Giro only charge like $3 per trade

meant for (You)

It could go down like 20% the day after

The odds probably are in your favor and you may succeed in making 1% profit dozens of times but if there's just ONE time that the stock never recovers, you'll have lost everything. Even if you set a stop-loss of, like, 5%, you have to be right more than 80% of the time to be profitable.

If you want to do that, then I highly suggest you buy leveraged ETFs. Be smart about it. Only buy during a huge sell off. Wait two days and cash out.

Well first of all there are significant fees and taxes. Beyond that if you want to buy and sell on a whim there usually isn't enough liquidity for you to be able to buy/sell at the exact market price at any given moment, you will generally buy for a little more than it's worth and sell for a little less than it's worth if you need the order to go through quick.

But even if we ignore all of that, the rest just boils down to risk/reward. Sure you are likely to gain 1% this way, but for example you may be taking about a 1% risk that your assets will go to zero before the stock ever gains 1%. Obviously the math might not always work out, which is when you can play the market, but generally speaking the risk/reward balances out for any investment.

Don't put all your eggs in the same basket. Spread that 10K on multiples stocks in low range(not pennyshit)

1% is not enough.

How do you anticipate huge sell offs?

Get Robinhood so the fees won't kill you. Look for the hottest penny premarket and go all in

I got burned doing this with AUPH last week :(

>wait until it's gone up by 1%


hahahahahahahahaha.

There's a lot of guys who put a lot of money into MGT at $4.00 that are still waiting for it to go up 1%...

good ol MGT

those scam robinhood threads always take money away from retards

>guys! lets just pump and and dump! MGT and GEVO!

MGTI is up over 30% this past month

i would suggest splitting it between 4 to 10 different stocks

Why does the price of the stock matter.
1% is 1%

> 20 - 50 dollars commission
> up to -1.0% for buying and then selling
a retarded idea on top of a retarded idea

im considering buying into those robinhood thread memes, potentially doubling my cash then invest it in something more long term and stable.
id like to be able to have enough so i can pull out like 1k - 2k a month for living
seems doable just have to be careful as hell and prob only invest like 1/3 or a 1/4 of my total portfolio so even if i lose it i still have something left

>tfw in auph since 2.50 and sold for $6 at peak

>tfw you sold to me

There's brokerage fees, as well as capital gains taxes.

You would have to throw around tens of thousands of dollars to make those kinds of trades worth it.

I'm sure some people do exactly what you're saying, but instead of throwing $1.00 into a stock and making a penny, they're throwing $100,000 dollars into one, and making a grand.

The point is that penny stocks often go down for months after you invest in them.

I have played penny stocks for the last year. First 2 months I was up like 40%. It's been a year and I'm about dead even.

I'm just switching to blue chips and index funds.

Penny stocks aren't much different then Vegas. You get a little beginners luck and think you have a system. Then after about 6 months you realize the truth that you can't really make money on penny stocks. You have to be like everyone else and go long.

Odds are equally great it goes down 1%. There's no reason the stock will go up eventually.