"The advantage of the penny stocks is that you can purchase sufficient at modest cost to be able to get a result, it is a cost efficiency thing."
True, and that's also another reason why penny stocks attract inexperienced traders/investors, they see a stock go from 1c to 2c and think with just 1k they would of just doubled their money. However more often then not due to volatile low liquidity of penny stocks they are just as likely to go in reverse direction.
Even if you have a small stake there are far better products available today over a wide range of commodities,index that give you 2x or even 3x speed for invested capital. Plus round trips are a fraction of the cost what you might pay on brokerage by likes of Commsec.
Look at inverse ETFs for Oil and Gold they've all doubled or tippled in the last few months and your not exposed to a single company at high risk of the next bad announcement.
Again penny stocks are ok for about 5% capital risk and a bit of fun on the side but by no means should they form the core of your trading/investing plan.
Anyway I realise I'm trying to push water up hill here because HC is devoted mainly to discussion of penny stocks and therefore has a lot of supporters. If your goal is early retirement,trading/investing as main source of income you'll never do it on sub mid caps alone and especially not on penny dreadfuls.
