24 year old turns his $1,500 life savings into $1,000,000 trading in the stock market with penny sto
56 replies, posted
[quote]How did he do it? Not by buying and selling stocks of large and well-known companies like Apple (AAPL, Fortune 500) or Ford (F, Fortune 500). Instead, Grittani trades penny stocks -- very small companies that typically have a price below $1.
He's the first to admit that it's a risky strategy. And it's not for everyone.
"I've been trading every single day for almost three years, and it's been a slow, day-to-day process," Grittani said. He spends the entire trading day in front of a computer screen, in order to buy and sell stocks at the right time. He is sometimes in and out of stocks within minutes, and the longest he ever holds shares is a few days.
So why trade penny stocks? Many of these companies are speculative because they are thinly traded, usually over the counter instead of on major exchanges like the New York Stock Exchange. The Securities and Exchange Commission warns that "investors in penny stocks should be prepared for the possibility that they may lose their whole investment."
Plus, penny stocks are notorious for being part of so-called pump-and-dump schemes, in which scammers buy up shares and then promote it as the next hot stock on blogs, message boards, and e-mails. Once the stock price is artificially pumped up by all the talk, the scammers sell their stake, leaving unsuspecting investors with big losses.[/quote]
[url]http://money.cnn.com/2013/12/16/investing/penny-stock-trader-millionaire/index.html?hpt=hp_t3[/url]
The thread title reminded me of those seedy internet ads that are always like "Stay at home mother makes $1,000 a day and so can you!"
After this, he should try investing wisely in things that are safe.
Like motorcycles and alcohol.
For every success story like this, there are literally thousands of failures. I hope people don't get inspired to throw their entire life savings into stocks a young age and lose it all in a desperate attempt to get rich.
Day trading activities like this were always so appealing to me, I only wish I had the time to invest in actually studying this subject and engaging in it.
literally about to do the same thing
[I]results not typical[/I]
I thought this stuff generally doesnt work because of trader fees?
[QUOTE=Bentham;43202759]Day trading activities like this were always so appealing to me, I only wish I had the time to invest in actually studying this subject and engaging in it.[/QUOTE]
There's no rush or time limit. Take a few hours out of every day to research and read up. After a while, I'm sure you could put in a little bit of money, test the waters and how you'll do, then put more money in as you grow more successful and experienced.
There's no need to shove a thousand dollars into this right away and hope for the best, really.
[QUOTE=Emperor Scorpious II;43202797]There's no rush or time limit. Take a few hours out of every day to research and read up. After a while, I'm sure you could put in a little bit of money, test the waters and how you'll do, then put more money in as you grow more successful and experienced.
There's no need to shove a thousand dollars into this right away and hope for the best, really.[/QUOTE]
You make a good point. I think my major blockage is just getting started. Until I do it's going to seem like there's a giant ocean of information, the amount of which makes getting started incredibly daunting.
I wish i was ambitious. If i was i'd have put money in stock like tesla, and bought a couple dozen bitcoins when they were 10 bucks a piece.
hindsight is 20/20 though, right?
[QUOTE=sloppy_joes;43202663]For every success story like this, there are literally thousands of failures. I hope people don't get inspired to throw their entire life savings into stocks a young age and lose it all in a desperate attempt to get rich.[/QUOTE]
Not to mention the sheer effort and stress involved, this guy has had to check the stocks literally every minute for almost three years
If you want to start investing research stock and bond indexes. Invest a little bit each year and it'll have increased nicely by the time you retire. After that if you have extra play money you can play with the stock market.
[QUOTE=Bentham;43202806]You make a good point. I think my major blockage is just getting started. Until I do it's going to seem like there's a giant ocean of information, the amount of which makes getting started incredibly daunting.[/QUOTE]
Have to start somewhere with everything. When you start school, then don't put you in 12th grade just after preschool :v:
Take baby steps.
At least now, with this article, you know it's at least possible.
[QUOTE=Bentham;43202806]You make a good point. I think my major blockage is just getting started. Until I do it's going to seem like there's a giant ocean of information, the amount of which makes getting started incredibly daunting.[/QUOTE]
Read books.
[QUOTE=sloppy_joes;43202663]For every success story like this, there are literally thousands of failures. I hope people don't get inspired to throw their entire life savings into stocks a young age and lose it all in a desperate attempt to get rich.[/QUOTE]
This is exactly what people fail to realize about Bitcoins too. They're basically the same as penny stocks (sorry, bitcoins aren't currency).
Warren Buffet 2.0
[QUOTE=OvB;43202874]Read books.[/QUOTE]
Read books about finance, economics, and stocks. (Maybe some risk-benefit training)
1500 worth of savings at 24? Wtf has he been doing with his money.
probably school
why can't he just be a normal young adult and invest $1500 in drugs
[QUOTE=Flem;43202915]1500 worth of savings at 24? Wtf has he been doing with his money.[/QUOTE]
Maybe paying for college or something, can't assume he's terrible at managing money based on that amount, especially since he managed that amount into over a million
[QUOTE=Flem;43202915]1500 worth of savings at 24? Wtf has he been doing with his money.[/QUOTE]
I'm 24 and my saving are currenty -£1500
[QUOTE=NoDachi;43202964]why can't he just be a normal young adult and invest $1500 in drugs[/QUOTE]
I invested $1500 in a camera and I all got were some shitty pictures.
[QUOTE=sloppy_joes;43202976]I invested $1500 in a camera and I all got were some shitty pictures.[/QUOTE]
unless u sell those pix
[QUOTE=Flem;43202915]1500 worth of savings at 24? Wtf has he been doing with his money.[/QUOTE]
He started when he was 21, so he had only $1,500 at 21.
Which if he was living on his own and trying to make it with school, at that age, isn't that surprising. In fact, I would go to say it's pretty well off compared to many.
[QUOTE=NoDachi;43202972]I'm 24 and my saving are currenty -£1500[/QUOTE]
[quote]why can't he just be a normal young adult and invest $1500 in drugs[/quote]
the first step is admitting you have a problem
[QUOTE=Tmaxx;43202821]I wish i was ambitious. If i was i'd have put money in stock like tesla, and bought a couple dozen bitcoins when they were 10 bucks a piece.
hindsight is 20/20 though, right?[/QUOTE]
Most of these just sound careless until you actually get some profit and then you call yourself ambitious and successful
One of the main reasons Bitcoin got big is that very little people thought it would, and it didn't make much sense financially
[QUOTE=Timebomb575;43203010]the first step is admitting you have a problem[/QUOTE]
realtalk though, the richest I've ever been was spending my university grant on drugs
it honestly is the easiest return you could get
Sticking with TSLA, SCTY, and WDC. Penny stocks are scary.
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