Should I buy Penny Stocks?

Should I buy Penny Stocks?

I did. Let me tell you a story about my penny stock adventure.

Disclaimer: I am not a stock expert. I am not giving advise. I am just sharing my stock story with buying penny stocks. Buy stocks at your own risk, at the risk of the sometimes volatile stock market and only invest what you can afford. Invest responsibly. Always do your own research.

Once upon a time, not really a fairytale story though, just a normal story. I should start, this one time on the Robinhood app, I bought three different penny stocks.

First, let’s get into what a penny stock is. According to Google, penny stocks are…

Thanks for the knowledge, Google. Always so informative. Really truly I don’t know what I’d do without you.

Now that we know what a penny stock is, let’s deep dive into what penny stocks I bought and how they are currently doing.

If you're interesting in reading about my stock buying journey, feel free to check out my first blog on stocks where I talk about why I stopped playing lotto scratch cards and started investing here.

My History in Penny Stocks

On May 31, 2019, I purchased 300 shares of Legacy Reserves at $.1216 a share for a total of $36.48. Legacy has been extremely volatile since I purchased it. Right after I purchased it the stock rose to $.60. Which was amazing, I was up about $140. I should have sold. I was so excited but I didn’t sell and then it dropped and dropped fast. As of this week Legacy Reserves filed for bankruptcy. The stock currently sits at $.079. I really don’t know what happens to stocks in a company that’s filed for bankruptcy. Should I sell? I don’t really know. Guess I’ll have to wait to see.

On June 3, 2019, I purchased 300 shares of Histogenics at $.1883 a share for a total of $56.49. This penny stock I purchased is currently at $.175. I’m at a loss today. Hopefully this one will go up.

Also on June 3rd, I purchased 300 shares of Jaguar Health at $.1648 a share for a total of $49.44. Oh Jaguar Health has also been a little odd. I woke up one morning to find I no longer had 300 shares, I had 4 shares of Jaguar Health. A little bit later I received an email from Robinhood letting me know of the Jaguar Health’s reverse split. For every 70 active shares I purchased, I would recieve 1 share. Which is why I had only 4 shares left. They also advised that I would be paid at a later date for any fracture shares I had left (up to several weeks later). That’s nice of them to inform me because I had no idea what had just happened.

If you're enjoying this blog post, you might like my previous blog post about stocks where I discuss if I should buy Disney stocks? You can check out that post here.

(sigh) Basically, penny stocks aren’t for me. I don’t see myself buying penny stocks anymore. I tried it. I watched loads of videos and articles that said to stay away from penny stocks but I did it anyway. I learned. And now I’m off to the land of dividend stocks.

Should you buy penny stocks? It’s your money. Be wise with it. Do your research. Study up on any stock before you invest in it. I know I probably won’t buy a penny stock again just due to my experience.

If you’re interested in investing in stocks as well, you can sign up for Robinhood app. They are a free site I use to trade stocks. If you sign up using my link you receive a free stock just for signing up, no deposit necessary to get the free stock. Full disclosure, I receive a free stock as well if you use my link here.