Penny Stock Investing…is This A Good Idea?
First, a quick background. I am a college student and my knowledge of investing in shares is limited to economics and finance some courses I took. Anyway, I have about $ 7000 just sitting in a savings account that I have accumulated since my teens (I save almost all my money). I do not need that much cash (my parents pay my tuition and my car and tell me not to get a job while attending college, because he messes with my academic performance) and wanted see if what follows is a feasible idea, or if I'm just a moron.
I am many different strains, some obscure. But anyway that if I had, for example on a whim, you can buy approximately 100,000 shares or green ray energies (Grye) for $ 0. 05 A unit for $ 5,000 in total. Hold on for a year and some changes to avoid short term capital gains tax, and sell all my shares at some future time when the stock price is significantly higher at $ 0. 50 or more.
I know the point of investing is to diversify, "stay in it for the long term", etc.. . But would this be a decent idea? Keep in mind, I do not need all $ 7000 of my money at that time, and probably will not until I graduate in 2 years. I suppose I could start saving for retirement, or who are much smarter with my money. . . but I just want to know if it would work!
