InvestorQ : Are all cheaply priced penny stocks bad?
Niti Shenoi made post

Are all cheaply priced penny stocks bad?

Rutuja Nigam answered.
3 years ago

What do we mean by penny stocks? It can under Rs.10 or Rs.20 but you surely can make out a penny stock when you see it. It is quite normal to see the smartest of investors fall for the cheap trash trick. Ask any successful investor and he will give you at least a few instances of how they became victims of cheap trash syndrome. The syndrome is quite simple. You see a high priced stock falling and you rush to buy it. The reason is that in the past the stock has always bounced from lower levels. What you need to ask is whether something has changed fundamentally which is justifying this fall in price?