"It has come to my attention that Turn $500 into $5000 With Penny Stocks is the most popular post on this website, Teens With Money. While I did at one time turn $500 into $5000 on a single penny stock nearly 5 years ago, it was incredibly lucky and I don't recommend gambling your money like I did. The stock (KEYP) was a scam and has since dropped to $0.03 from its 2011 high of $4.83. I was very lucky as I took my profits and wasn't too greedy. $500 is not enough for an initial investment, and most investment experts would recommend a minimum of $2000 to begin investing in todays highly volatile markets. However with that all said, I still stand by the second part of this article as it contains some great information for teens looking to make money in the stock market. Good luck, be smart and thanks for reading!"- John Cookster
Original article:
Have you grown sick of your job while working so much for so little money? Believe me, the last thing I would want to do right now is to have a 9-5 job, busting my behind to make minimum wage. Granted, any money is better than no money, but I'm not looking to make any money...I'm looking to make a lot of money.
I know that kinda sounds like I'm an arrogant person, but hey call me what you want. I know how to make a lot of money online and I'm only a teenager. Recently, I turned 18 and got involved in penny stocks (aka stocks under $1.00) and eventually larger stocks through a friend. He told me about a sub penny stock with a new CEO that had completely changed the direction of the company. The sky was the limit and their stock price was about to sky rocket. I trusted my friend, opened a brokerage account and bought $500 worth of shares in this company.
Fast forward 1 week. I had just bought myself $1000 worth of brand spankin' new clothes. The share price rose over 1000% and i had turned my initial small investment into a large sum of cash. I was ecstatic and couldn't believe that at my age, a mere freshmen in college, I had just made so much money in 1 week. Naturally, I did what any stupid teenager would do. Without doing any research I dropped $1000 into a another company. Within 2 days the share price had dropped 60% and I had lost $600. I had gone from being on top of the world to being scared to spend a dime in a matter of days. Since that drastic turn around about 2 months ago I have made another $4500 in the stock market. I began reading up on chart trends, company statistics and industry news. All factors that affect the price of a share. I educated myself and although I have had some tough losses, I have overall made a large amount of money through stocks.
BUT BE CAREFUL. Stocks are extremely risky. Plain and simple. Especially penny stocks! If you aren't willing to take some risk then you probably won't make yourself any money. Don't be a stupid teenager. I know I was at first!
Penny stocks can make you filthy rich, but can also cause you to lose all of your money. Before you decide to invest in a penny stock realize that they are risky because of:
- Lack of available information about the stock
- Lack of minimum standards to cushion investors
- Lack of stock history due to a company's new start
A penny stock can jump 400% in one day and seem like the next Apple. However it can drop 100% just as fast. Just make you that if you do decide to play penny stocks that you are constantly watching the share price and doing your DD on the company. They are hard to play as adults, let alone as a teen. However, I feel that as long as you do your homework then you aren't taking a risk, you are just taking advantage of a great investment opportunity.
Before you decide to go blow all of your money on some company, I suggest that if you are legitimately interested in stocks then you talk to your parents. I'm sure that your dad can offer you some great advice and would point you in the right direction to start. If not, the internet is your friend. Endless amount of free information will get you off to a good start! Good luck everyone!
