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That micro price tag makes penny stocks more susceptible to scammers and to wild swings in price.
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Since I didn't have much money, I. If you let yourself break your own rule once, chances are you are going to break your rules again in the future, and eventually you may lose all your money because of one or more bad trades. Penny stocks are subject to all kinds of manipulations, and you're going to need all your wits to make money in this neglected area of the stock market.