Can’t go down - must go up

A firm misconception in this field is that just because the price is already so low it simply can’t fall much further - the only potential is up type of argument.

Not true - absolutely not true. Any share price can fall to a big fat zero, and that will lose you 100% of your money.

Essentially penny stocks do have a greater likliehood of doing just that, because they are smaller businesses and (some would suggest) tend to be in the riskier sectors.

All other things being equal, it’s the company prospects that will determine whether a stock goes up or not - nothing intrinsic to the price itself.