Lower capital needed than blue-chip stocks, but still requires funds to trade.
Earnings can grow, but significant capital and reinvestment are needed.
Trading is active, requiring constant monitoring. No passive income unless holding long-term.
Many traders are drawn to penny stocks, but manipulation and low liquidity can be issues.
High competition from experienced traders and institutional investors.
Potential for quick profits, but also high risk of loss.
Highly unstable—companies can fail, and stocks are often delisted.
Very high risk—traders can lose most or all of their investment.
Anyone can start, but success requires learning technical and fundamental analysis.
Market sentiment and regulations affect trading conditions.
Accessible worldwide, but regulations may limit trading in some regions.
Basic market knowledge is required, and experience improves success rates.
Most brokers allow withdrawals, but some have processing delays or fees.
Profits are possible, but losses are common, and it requires skill.