Comments on: Penny Stock Debacle: How I Lost $5,000 and How You Can Avoid It

By: Ruth Lyons

Ruth Lyons — Fri, 30 Aug 2019 15:40:16 +0000

Thanks for sharing. Your transparency is appreciated and I also have learned some investing lessons the hard way! You summed it up in your question at the end “Have any of you invested money into something you didn’t understand?”.

That’s one of Warren Buffett’s rules to invest by: Don’t invest in something you don’t understand.

By: Jake Smoak

Jake Smoak — Tue, 25 Sep 2018 02:33:59 +0000

Great warning to others! Two thoughts:

1. The OTC market works much like the NYSE. However, stocks on OTC are generally less liquid, resulting in your experience.

2. You stated that you have worked as a financial advisor. This is exactly why I refuse to hire a financial advisor. If they don’t understand stuff like this, what else don’t they understand?

By: John

John — Tue, 25 Apr 2017 14:54:32 +0000

I almost had enough saved for a down payment on a house but I was so sure that I could double it. Two years later there’s no house but I do get to live in my car.

By: Diane

Diane — Tue, 28 Feb 2017 16:48:09 +0000

Its like anything else, learn how to trade, then practice practice and practice some more. Pennies are tough and there are other ways to grow an account by “trading” besides pennies, but if you become proficient at it, what you can accomplish is amazing and ROR literally crushes typical portfolios, but, fear and greed crushes most who try. I give you a ton of credit for trying. I trade futures and it took many me years to “get it” – Great Post thanks for sharing your experience 🙂

By: KC @ genxfinance

KC @ genxfinance — Thu, 18 Apr 2013 05:02:20 +0000

Aww man. That hurts. But it happens to a lot of people. We’re not perfect and it’s quite normal to make mistakes. What matters most is to learn from it and share it to others so that we won’t do the same mistake.

By: Derek Timm

Derek Timm — Sun, 24 Mar 2013 06:27:52 +0000

I just started investing a month ago. I didn’t have much to invest so I started with penny stocks. After I read more about them and was worried after I read all about them. Luckily for me, it was Excell Maritime (EXM). I bought at around .40 and sold for 1.00 but I am to nervous to try investing in penny stocks again, despite my LUCKY return. I now have a financial adviser and am not going to make gambling decisions!

By: Kate Horrell

Kate Horrell — Wed, 20 Mar 2013 09:20:33 +0000

Thanks for sharing this story. It is hard to talk about our mistakes, but I’ve learned several important lessons from you and I appreciate it.

By: Paula @ Afford Anything

Paula @ Afford Anything — Sun, 17 Mar 2013 22:12:10 +0000

Sorry to hear about your $5K loss — but, on a somewhat-related tangent, I definitely give you props for telling that story in such an entertaining way!

I know someone who lost $10K when he made a risky commodities bet. He also took advice from someone that he shouldn’t have taken advice from, a speculator, and he did it with a large amount of money instead of a “small bet” like $500 or $1,000.

By: Dylann Andre

Dylann Andre — Sat, 16 Mar 2013 07:19:57 +0000

This is so brave of you to accept and share your story of failure so everyone will learn also and will not commit the same mistake. This surely is a big help to everyone.

By: Len Penzo

Len Penzo — Fri, 15 Mar 2013 22:49:15 +0000

Wow, Jeff. That is horrendous news. I’m really sorry to hear about that.

I always knew penny stocks were risky, but I never considered the risks of placing a “market order” on them — but it’s an extremely valuable lesson for the rest of us.

Here’s hoping that stock price takes off in the coming weeks and months.