A R/S can also wipe you out. I've been burned by several penny stocks that R/S only to watch my $1000 investment move down to $10. Yes, there is a possibility of reward, but don't think that buying in at $0.0001 is safe. It's not. If you believe in the company and what they have to offer (and have researched it), then give it a try if you want. However, only invest what you don't mind losing 8/10 times you will lose with the lower priced stocks. The 2 that you do win won't necessarily cover the losses either. Especially if you hold forever think it will go up even higher.
What I've been doing lately, which has worked for me sometimes, is buy a set amount of a stock. Once the order goes through, sell half to cover my initial investment at x2 what I paid. Then, sit on it until something happens. Doesn't work all the time (some orders never get filled), but something to think about.
Hope this is helpful.
[wdaubie]
Yup!! Risk VS Reward! You can't go down from .0001 unless its bankrupt and if you can't afford to loose it don't play it!
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