system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: Why are people scared to invest in penny stocks?

Even more specifically, the Pump n Dump scheme. People are scared they'd lose a lot of money. Say I bought 100 shares of a stock worth $.02, I only put in $2. Even if the value of the stock raises to $3 due to somebody artificially raising the price and then sells their shares, I still only stand to lose $2 of my own money...??? 

Also why not just buy 100 shares of as many penny stocks as you can? One of them is bound to go up, right? 

Edit: Cool thanks guys, love learning new things!
gpt
There are a few reasons.

1) Volatility.  A $0.50/share stock can gain or lose 50% in a day.

2) Long term viability.  There's a reason the market thinks the shares are worthless.  The company is either new and untested, or tested and failed horribly.

3) Volume.  These stocks are usually lightly traded.  You may not be able to actually find someone willing to buy your stocks should you choose to sell.