RE:Who should,and who should not play penny stocks.Good Evening Mrs Goldminer. That is a great post and I will also give you 5 stars for it. However, In my opinion, I think some of your reasoning is flawed. First, I never average down. EVER. If I own something and it drops 10 to 15 per cent I sell it. I am not willing to watch my money evaporate. It doesn't necessarily mean I picked a bad company, it just means I picked the wrong entry point. You give great advice concerning penny stocks but the major flaw in your reasoning is that you always expect them to recover. Most of the time they don't recover or if they do it takes years to happen. Does not matter if it's a penny stock or blue chip, limit your loss to whatever is acceptable to you. I have friends that rode Nortel from $135 all the way down to zero and they were doubling up all the way down. I retired at 53, they are still working. The next point I have a hard time with is how you limit your exposure to around 25 stocks. It's good to have an intimate knowledge of that few stocks if you are day trading them, and I admit to doing that with some of my favorites, however, on a broader basis I have around 500 north American stocks on watchlists and I have alerts set on all of them notifying me when there is news or something out of the ordinary that requires a follow up. I think that you need to expand your horizons a little. Good luck to you