Replies to post #36395 on The Friendly Money Making Board

[Realperson]

All penny stocks are a short term gamble on the likely hood enough buyers will accept the companies story line to boost the PPS to levels high enough to justify the risk of losing it all.
When you buy any stock looking for a bounce for what ever reason the pot odds change has the pps goes up. I bought ford at $1.85 for say 10g's then watched it go to $3.80 now I have over $20 g's of Ford. To get the same return on my risk Ford would have to go to $7.60. At this point we are no longer talking about 10 g's at $1.85 were talking about risking 20g's on Ford after a run at a pps of $3,80 which is a bad bet. If I hold and the price goes back to $1.85 and I sell I didn't break even I lost 10 grand or my opportunity cost.