InvestorQ : Is it that I need to stay of such cheap stocks altogether?
ishika Banerjee made post

Is it that I need to stay of such cheap stocks altogether?

Answer
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Tisha Malhotra answered.
2 years ago


There is nothing bad about a company that is available cheap but if you do not have the wherewithal to find out the real reason then it is better that you stay off such companies. There is absolutely no point trying to play these companies either on the long side or short side. As a smart investor, such investments in penny stocks are best avoided. At the end of the day, it is hard to predict their momentum either ways. The moral of the story is that “Cheap Trash is Trash Anyway.” You are better off staying away from it. Remember, the signals are always available to the discerning. It just takes a little bit of effort from your side. You may, in the process, miss out some penny stock multi baggers, but they are not just worth the risk. As well stay and let it pass. You can also come back into the market and find an opportunity that combines money opportunities with the backing of safety and conviction.