Hi TODA.1,
In some regards, they are equally risky markets to trade in as much they both require high leverage multiples to take advantage of tiny price movements. Take a look at the plethora of threads here on T2W started in the aftermath of the SNB fiasco from the week before last to find out what the implications of that are regarding forex. On the penny stocks front, even if your holding doubles in value from say, $0.10 to $0.20, you will still have $0.01 spread which accounts for 10% of your profit and then you have to find a buyer for your shares as they hit fresh highs. No prizes for guessing what happens to the price when you (along with everyone else) tries to offload tens - or hundreds - of thousands of shares of a stock that no one really wants - other than a handful of penny stock enthusiasts like you. Penny stocks are (in)famously illiquid, meaning that even though the price has gone up 200%, 300% or whatever - managing to sell them to realise the gain is next to impossible. If you want to take a wild punt and are prepared to lose all your money - you might just get lucky. Personally, I'd play the lottery.
Of the two, most members would probably counsel forex in favour of penny stocks. I'd say go here and consider if there are other options which might suit your trading objectives and personality better:
Which Should I trade - Stocks, Futures or Forex etc.?
Tim.
