RE: "Friend's penny stock HALVED. I bought it. Then it fell another 80%. No way I could buy more.That was it. Stock up 300%."-Ex.CEO.CA Founder [sold'21]. Ref: Penny Stocks.5 Apr 2024 19:31
Theory:
The volatility in penny stocks can be more PRONOUNCED than large stocks ie in terms of VOLATILITY.
Why do they swing from -50%, -80%, then +300%? It has to do with MARKET CAP. One learns that if a MKT CAP IS £300M, it is harder to DOUBLE, TRIPLE without some reason. But one also learns that if a PENNY STOCK is £1m or £2m market cap and they find something OR have deposits in gold, say in an ATH gold price period, then jumping +300% = £6m which is now the ENTRY mkt cap to join the AIM.
So, naysayers may NOT understand that OR HISTORY OF BOOM, BUST AND REPEAT by Casey Research on the gold prices and junior stocks. I posted the article last night and the MULTIPLES of the RISES in junior stocks in a GOLD boom. It is quite common and well known in GOLD BOOMS & bust booms, when the COMMODITY rises or falls. So, studying penny stock and their behaviour would have SAVED many before they invested? DYOR. NIA.