When I turn aged 18 I intend to invest into penny stocks with the £4,000 I should have by then. If I choose the right ones, could I become a millionaire reasonably quickly with the money I have?
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No. It would be like a casino. With bad odds, you’d lose more times than you win.
People who become millionaires in the markets use risk management and leverage for blue chip and larger growth stocks. You also need to learn technical analysis (reading stock charts) and fundamental analysis (analyzing the company) and watch the overall market FTSE 100 index to succeed.
For the UK and Ireland, you could try studying the stocks on the FTSE All-Share Index: http://uk.finance.yahoo.com/q/cp?s=%5EFT…
UK stocks are measured in pence instead of pounds so don’t freak out if a stocks is quoted at 2000. It’s only 20 pounds.
There’s no hurry. The London Stock Exchange is always going to be there. Better to learn first and profit later than lose your 4000 pounds.
As a long time investor I will say yes IF you chose the correct ones since 99 out of 100 will take you for the 4,000. Your chances are about 1 in a 100 that it is a good company.
Your stock would have to double every month for 8 straight months to reach your goal. IMPOSSIBLE.
That is a lot like asking if you pick the right lottery numbers if you could become a millionaire..
Sure, you could.
Its just extremely unlikely.
most likely not