I’m trying to get more serious about understanding penny stocks and microcaps instead of investing based on hype or partial intuition.
So far, my approach has been:
1. Paying attention to what investors are talking about (with skepticism)
2. Using my tech background to see if the company or space is something I actually understand
This has worked *sometimes*, but also failed — for example, I exited UiPath after realizing management incentives didn’t align with shareholders.
I’ve borrowed *Penny Stocks for Dummies* by Peter Leeds and want to go deeper:
1. What books would you recommend to properly learn microcap due diligence (financials, dilution, management incentives, fraud risks)?
2. Which apps or platforms are best for **paper trading penny stocks**, especially low-liquidity names?
I’m not looking for “hot picks,” just frameworks and tools to think better and avoid obvious traps.