I told my friend why penny stocks scare me for beginners

They look cheap but can vanish fast. A guy I know lost his first deposit that way. Now I steer clear and suggest index funds.

3 comments

3 Comments

joels743d ago

My cousin put $500 into BioTech Dreams last year. It was gone in a week. Poof. So yeah, I get why you steer clear. Index funds are boring but they don't just disappear. Losing that first deposit hurts, man.

miles723d ago

Forget losing deposits, they can wipe out your whole savings overnight.

gracehernandez3d ago

But seriously, how does that work in real life? Like, do you mean when a bank fails and there's no insurance? I remember hearing about folks in Cyprus a while back who had their accounts straight up drained. Or is it more about investment scams that vanish overnight? Give me some concrete stuff here, because just saying 'they can wipe you out' feels like fear-mongering without details.