Why stocks ie VASO are not worth buying for most
Stocks ie VASO, or stocks with tiny market caps and anemic daily dollar volume are not good plays in general. Why ? Because most people(even young adults) don't want to be in stocks you can only buy a few thousand dollars of, and that you can't get out of quickly without tanking the stock 5%-10%. Bid/ask spreads are ridiculously high as well. Just look at VASO today Bid .24 Ask .26. How does one make money with 8% spreads on the bid and ask ! Also these tiny companies are often OTC stocks, which have less SEC requirements. I don't think for example that OTC stocks have to do audited yearly 10Ks. So trust becomes a factor as well. Bottom line is, in my view, the time and effort to maybe make a few thousand dollars in a tiny anemic liqudity stock with huge bid ask spreads is not worth it. I would love to see the time put in vs the actual dollars made for anyone playing these stocks over many years vs a good stock picker playing high liquidity small-mid cap stocks on a major exchange.
