The simple truth is that you can make many small losses and still have money to try again, OR you can hang on to a loser and hope that it goes up someday. The discipline of the limited loss rule has been a key to my survival in the stock jungle. The Wall Street Money Machine. I stand firmly against the notion that bigger profits come from cheaper stocks. That s gambling.
Penny stocks are illiquid, less stable, and more susceptible to manipulation and scams.
Plus, there s no way to protect your downside. Beleive me, I ve owned them. Higher priced stocks tend to have more name recognition and excellent liquidity. They are much more likely to call splits and to have dividends. I ve ridden such tickers as BVSN and PDLI for runs which quadrupled my money and more.