Whats the point of Penny stocks? (vs Options)

[lescor]

The point not mentioned in this thread yet is who is your competition? Who's on the other side of your trade? Penny stocks it's probably some retail 'investor' who read about it on some pumper site and barely knows how to enter an order. The other side of your options trade is a professional options market maker or arbitrage trader. Where will it be easier to spot an exploitable edge?

I'd rather try to wrestle money out the hands of the newb than the shark.

 

[stock777]

There's a big psychological aspect of paying daily theta when the stock won't move.

With penny stocks, your hoping your on the side of the pumpers. I've thought about trading pennies before, but it requires totally different "underground" info sources.

Btw, I think that's one of the reason the forum doesn't cater to penny stock trading. It's elitetrader, not elitepiker.

Bet more money is made by retail penny pros than those swimming with the big fish. There are plenty of pikers trading aapl.

 

[stock777]

I agree.

if you buy AAPL/GOOG, hard to be doubled. but 0.3stock doubled tripled overnight.

of course, the odd is very low, more unpredictiable.

I once treat it like: buy the cheapest lottery, win the multi-millnion. think it as lottery.

often I monitor those pumps,then short. the odd is high.

wow, amazing insight.

cant double aapl, cant lose 50% either. 90%, delist...........

 

[lotto]

penny stocks, OTC, PINK is probably the last market not dominated by computers. Most transactions are still done by humans. It's something that should be respected imo.

The point not mentioned in this thread yet is who is your competition? Who's on the other side of your trade? Penny stocks it's probably some retail 'investor' who read about it on some pumper site and barely knows how to enter an order. The other side of your options trade is a professional options market maker or arbitrage trader. Where will it be easier to spot an exploitable edge?

I'd rather try to wrestle money out the hands of the newb than the shark.

I suspect that very few reading these two posts comprehend there import.