Categories: Mind & Soul

50 Weird Ways People Go Broke

43. Investing in Penny Stocks

All investments have risks, but if you invest in penny stocks, the risk level is akin to gambling. Timothy Sykes is a seasoned trader who turned $12,415 to $1.65 million, according to Forbes. But even he admitted on his own website to losing his money roughly 30 percent of the time.

People who ignore the odds and stake money they cannot afford to lose, such as the mortgage or their savings, are destined to go broke. Penny stock investors should be prepared to lose their entire investment, the U.S. Securities and Exchange Commission has warned.

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