Penny stocks Vs Big Stocks


I am a new bie in the equities marker and have been trading only for past 7 to 8 months, My investment ratio between penny and big stocks will be 30% and 70% of my total investments. But Peny stocks has got me more returns than the bigbees in most of the periods.

Is investing in penny stocks more advantegous than investing in big bees ?
Or is it just because of the healthy trend in last few months that penny stocks are more productive ?



Super Moderator
Penny stocks do extremely well during the last(final) stages of a bull market. That is why your penny stock portfolio did relatively better that the big cap stock portfolio.


Super Moderator
Diwakaraiah said:
Hi Traderji,

Are you saying that the market is in the last (final) stage of bull run ? And all the penny stocks will crash any moment ?
Generally penny stocks are the ones to appreciate most in the last stages of a bull run. However we will have to wait and see how the market behaves in the next couple of weeks to finally come to a decisive conclusion. So hold on or now and keep a watch on how the mid cap and broad market indices like NSE Mid Cap 200 and NSE 500 indices behave.
One should never forget that "saas bhi kabhi bahoo thee". Todays big caps bhi kabhi penny stocks the. So as long as u r earning everything is o.k. But one should be careful with penny stocks, sell after booking 15% plus profit.
The small & mid cap stocks have done extremely well for almost all investors in the recent past. But remember that the small penny stocks are the last to move (they always move at the end of a BULL market), so they are a good indicator as to the life of a bull market.

We could be at the end of a bull run.


Well-Known Member
in the current scenario, many sub 50 stocks with weak fundamentals have nearly doubled.....:p
invstrs should well offload the dudes as operaters r taking full advantage of the pullback....:eek:

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