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Everyone has their own style of trading and techniques they like to use. Why not share some of these with each other? I have posted one of my favorite below.
Before I write this I would like to say I do not “depend” on any one strategy to make money on pennies. I have techniques that work well at times but as the market changes I change my strategy. This strategy is a short term or swing strategy I will share some of my other later.
Strategy One: Looking for the BIG loser
I love looking for the big loser as often it will reveal a stock moving towards it 52 week low. Key things I look for are –
1. Good volume 1mil or above 2. Very close to 52 week low 3. Super low price in the .00XX range. 4. The MACD indicator crossing upward 5. Check to make sure BAD NEWS isn’t out on it
I don’t like stocks everyone is talking about, I like to find new ones that have yet to be announced or realized by the general public. Typically when I play a Loser Stock I am in it for the very short term looking to make a few sweet points and get out way before the top. The reason I get out before the high end is because these stocks typically do not have the volume other HOT stocks do and you need to take your money and get out, don’t be greedy.
Ill share another strategy I use tomorrow if anyone cares to read it………..
Posts: 307 | From: Elgin SC US | Registered: Mar 2004
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Slim, I used to trade options back in 1982. I left this alone for about 20 years now. I started again in late Jan., and I actually do about the same things you're doing. I have this web page bookmarked, I'm sure you do too. (lol) I don't own QBID, because I was here too late, and didn't develop a stradegy yet. I don't own IBZT or GZFX, which seems to be the popular thing to do. I am glad I discovered you, it confirms I might be onto a style that works. OOPS! Forgot to insert the web page : http://smallcapcenter.com/markets_WinnersAndLosers.asp?losersorwinners=losers&mypage=losers
[This message has been edited by will (edited March 26, 2004).]
Posts: 4893 | From: Burbank IL USA | Registered: Feb 2004
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Great idea. I have been trading for 4 mths and just starting to really make money. I can't tell you a strategy, but I can tell you what NOT to do. 1) NEVER chase a run up. The MM's will sell you the stock right before they take it down. Wait until there is a pullback and buy.2)Never get attached to a stock and hope for news etc. 3) Stay away from stocks with huge numbers of shares unless you just want to hop in and hop out fast. 4) Never try to catch "a falling knife". I made good money on WNMI the last few days, but I lost $800 today trying to buy the bottom. 5)Never stay in a stock unless you have a stop loss point.
Posts: 85 | From: Mashpee MA USA | Registered: Mar 2004
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Hey WILL I use the same page. Only been trading for a few weeks but look at the loser section everyday to see how much stocks have dropped and what the charts looks like. I like looking at these as usually you can expect they will take a jump. I have only paper traded a couple as didn't really realize this was a strategie or people even did it this way...lol.. Guess that is why I am still learning. I also look in the finance section of the newspaper and check out daily losers there also. Thanks for you insight TheRealSlimShady it's people like you that help everyone to learn more. Feel free to post anytime with more info...thanks...Wayne
Posts: 115 | From: Vancouver,B.C. Canada | Registered: Mar 2004
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wayne: Just make sure you choose something with volume. consistant volume. If you buy it, you want to be able to sell it.
Posts: 4893 | From: Burbank IL USA | Registered: Feb 2004
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I thought you cant short a penny/micro penny stocks.. so whats the point of tracking loosers? I thought onlyh MMs have that power to short sell penny stocks. Like in Scottrade, you cant short any stocks below $5 range. Correct me if I'm wrong...
Posts: 82 | Registered: Feb 2004
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posted
I can't speak for Slim, but I think that he is referring to something which I have become interested in as of late. It's not a short sell based on anticipating a stock going lower- it's a short buy based upon the fact that the stock oversells so fast, usually due to stop-losses which are automated, and as such, the human factor is delayed in comparison. It you are vigilant, you can beat the crowd to the market and get a good price, make your profit intraday and move on to something else. Another good page of this type is BigChart's Stock Screeners page: http://c1.zedo.com/jsc/c1/ff2.html?n=162;c=141/1;s=113;d=16;w=720;h=300;t=UndertoneNetworks.com%20-%20CBS%20MarketWatch choose market option and either 'Largest % Price Loss' or '52 Week Lows By % Price Loss'.
Posts: 339 | From: Clearwater, Fl | Registered: Mar 2004
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slim..I found CTKH months ago @.0001 using this method.I check the small cap center daily for loosers,also got into NSDM when it was .03. Good hunting
Regards looking at GFYF @.002 and DDSI @.0016
[This message has been edited by whymejc (edited March 27, 2004).]
[This message has been edited by whymejc (edited March 27, 2004).]
quote:Originally posted by Zeker: I can't speak for Slim, but I think that he is referring to something which I have become interested in as of late. It's not a short sell based on anticipating a stock going lower- it's a short buy based upon the fact that the stock oversells so fast, usually due to stop-losses which are automated, and as such, the human factor is delayed in comparison. It you are vigilant, you can beat the crowd to the market and get a good price, make your profit intraday and move on to something else. Another good page of this type is BigChart's Stock Screeners page: http://c1.zedo.com/jsc/c1/ff2.html?n=162;c=141/1;s=113; d=16;w=720;h=300;t=UndertoneNetworks.com%20-%20CBS%20MarketWatch choose market option and either 'Largest % Price Loss' or '52 Week Lows By % Price Loss'.
You hit the nail on the head! thats what I do. Losers often turn in to winners.Using smart tactics you can see when one has potential. I use Volume- MacD- Stochastic and the 52 week low to help me choose. I post another tip I use later today I am busy making some money right this sec!
Posts: 307 | From: Elgin SC US | Registered: Mar 2004
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Penny stocks are volatile little creatures and they are easily motivated. When I say easily motivated I mean that they can be influenced to move up or down with little effort. Positive news is one influence that can make a penny move. However positive news does not ALWAYS make a stock climb just look at the latest PAVP fiasco. News is however an important part of the penny traders arsenal.
I like to look at the live OTCBB news feed each morning and pick several stocks in my target range (I like stocks in the .00xx range). Once I identify several stocks with positive or meaningful news I look at the volume and make sure it is about 3million shares. I then check the Stochastic and assure the stock is in the oversold range. I also check the MACD chart looking for an upward crossover. If these things all meet ---
1. Positive news 2. Volume 3. Stochastic Oversold 4. MACD on the upward swing
I make my purchase. This is once again just one technique I use to buy my stocks each day. This trading is usually focused in on swing or day trading as news often does not make a meaningful long term price difference. I find a price spike is more often realized and profits should be taken early to assure success.
Posts: 307 | From: Elgin SC US | Registered: Mar 2004
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This is my favorite day trading technique and yes I did invent it myself it is not copied or plagiarized from anyone or anywhere else. I call it Riding The Bull. Every morning I pick my ride carefully using a strategy that pays off 87% of the time. Yes that’s what I said 87% of the time, you play it on paper a few days and then you tell me I am lying.
In all seriousness this isn’t some revolutionary thing it’s really just a formula I made up that seems to really work, will it work next month? I dunno it’s the stock market it is not a FDIC insured bank you know!
The Formula
1. Volume over 9 Million 2. Opening Price at least 2 points higher than close price. 3. Oversold Stochastic Indicator
If each morning you look for a stock that is trading above nine million shares and opened at least two clicks above its previous close with the stochastic showing oversold then you my friend are getting ready to RIDE THE BULL. When I give you the figure 87% success rate that doesn’t mean it makes me a millionaire that means at some point during the trading day that stock became a profitable buy from the opening price. Sometimes it’s a little sometimes it a bunch so you play it how you feel.
One last thing if this condition is ever met with positive news then you have a RAGING BULL on your hands. Tons of money can be made with raging bulls!
Be sure to check the news and do some 50second DD on anything prior to buying it even if it’s a raging bull!
[This message has been edited by TheRealSlimShady (edited March 29, 2004).]
Posts: 307 | From: Elgin SC US | Registered: Mar 2004
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It’s difficult to keep track of everything going on with penny stocks. So many stocks and so many changes make it impossible to track without software that helps. I personally like MEDVED it can be found here - http://www.quotetracker.com
This is some great free software that allows you to set alerts on your stocks. I have every penny stock in existence listed and every one of them has a 52 week low alarm and a new news alarm set to go off. This is a great tool for anyone looking for a way to keep track of price changes on multiple stocks. It also has a great stock ticker and can be configured to work with your current trade account for REAL TIME feeds. I love this tool and I couldn’t live without it. The initial version is free but its limited you will need to buy it but it’s very cheap. This is not a paid advertisement it is just another tip from the real slim shady!
Posts: 307 | From: Elgin SC US | Registered: Mar 2004
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posted
Slim, when Riding the Bull, do you what do you mean by "2 ticks above the previous close"? Do you use this technique with penny stocks?
Posts: 14 | Registered: Mar 2004
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1.What is a "Oversold Stochastic Indicator" and when do you know it "oversold" 2."MACD on the upward swing" was does that mean too. 3. Volume if over 9 million and under how much?
I copied everything Slim wrote and printed it I just learned that the only thing I know for sure is that I dont know JACK Those sites are great!! It will be a long night Thanks so much and please post here again David
[This message has been edited by realperson (edited March 29, 2004).]
Posts: 1068 | From: Utah and Put-In-Bay Ohio | Registered: Jan 2004
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Here are some links to do your own DD nice charts and tools. Allstocks is the ONLY forum I use it is by far the best site, dont forget Allstocks has lots of other tools to use also on thier web site!
posted
Thanks SLIM, not to often you come across a geniune fellow that is willing to share is trading technique to anyone his willing to read the thread, from myself and many others THANK-YOU...I look forward to see this thread continued..
Posts: 47 | From: Bakersfield, Ca, US | Registered: Feb 2004
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quote:Originally posted by realperson: Punkrocks Good questions!
I copied everything Slim wrote and printed it I just learned that the only thing I know for sure is that I dont know JACK Those sites are great!! It will be a long night Thanks so much and please post here again David
[This message has been edited by realperson (edited March 29, 2004).]
Check out this site. http://stockcharts.com/education/ If you're looking to learn the TA it's a great starting point. Print out sections if you can an study them. I agree with slim on using Medved quotetracker. Excellent charts stock tracker. Use the charting and indicators to track stock you're interested in until you learn how to read charts and indicators. Track this on paper and you'll soon get the hang of it. Don't try and use multiple indicators that show the same thing (i.e. overbought/oversold). Study them all and pick one indicator you like in the different categories (i.e volume, OB/OS, Trend strength, etc.)
One little last piece of advice I almost learned the hard, hard way even though I new better. NEVER BUY ON THE DOWNTURN or while it's falling. WAIT for the reversal and confirmation of the reversal.
Hope this helps.
Posts: 134 | From: Memphis, TN, USA | Registered: Feb 2004
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quote:Originally posted by TheRealSlimShady: A Tool I Use
It’s difficult to keep track of everything going on with penny stocks. So many stocks and so many changes make it impossible to track without software that helps. I personally like MEDVED it can be found here - http://www.quotetracker.com
This is some great free software that allows you to set alerts on your stocks. I have every penny stock in existence listed and every one of them has a 52 week low alarm and a new news alarm set to go off. This is a great tool for anyone looking for a way to keep track of price changes on multiple stocks. It also has a great stock ticker and can be configured to work with your current trade account for REAL TIME feeds. I love this tool and I couldn’t live without it. The initial version is free but its limited you will need to buy it but it’s very cheap. This is not a paid advertisement it is just another tip from the real slim shady!
Hey Slim, I downloaded quotetracker, and it is a great tool. I love your idea of having a 52 week low alarm. I would like to do the same with every stock under a buck. But where did you get your list of all these stocks. I have seached and searched but cant find exactly what I am looking for. I saw a list of all otcbb but too many of those are not in my price range. I dont wanna spend days setting this up in quotetracker for it not to be right. Any help is appreciated.
Posts: 15 | From: Lexington Park, Md | Registered: Mar 2004
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hey slim (or anyone else willing to help), would you mind helping an aspiring trader out? if so, jot down your email address
Posts: 189 | Registered: Apr 2004
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i dont think slim or anyone else wants to put up their email addresses for spam, but since you want the help you should put yours up and chance the abuse
or better yet edit your message and ask your direct question
posted
I HAD POSTED SEVERAL MONTHS AGO. MAYBE THIS WILL HELP PEOPLE. DIANA
ESTABLISH A SET OF TRADING RULES THAT WORK FOR YOU. THESE ARE MY RULES. YOU HAVE TO COMPILE YOUR OWN. MAYBE THIS WILL GIVE YOU SOME GUIDELINES TO GO BY.
MY PENNY STOCK RULES:
1. I never buy on impulse or get emotionally attached to a penny stock--think LOGIC--I buy it, I sell it, I make money and I rarely look back. 2. I never buy a stock JUST because I like it or worse someone else likes it. 3. I rarely buy a micro penny stock trading under a volume of 50,000 mil--80 to 100 mil is better (always remember there has to be buyer for every stock you buy).. 4. I rarely hold a micro penny stock over night...My definition of micro penny is under .10 cents ..Rarely over a weekend..NOTICE I SAID RARELY. THERE ARE SOME STOCKS THAT HAVE A BUILD UP AND IF THE VOLUME IS GOOD AND I FEEL CONFIDENT ABOUT MY DD I WILL HOLD IT FOR THE RUN. At $7.00 to $10.00 a trade I can buy and sell it every day on news or hype or earning whatever. .(THAT'S WHY IT'S CALLED DAYTRADING) 5. I never buy a penny stock on the way up. IE CHASING I watch the pre market trading and set a buy price and a sell price and stick to it (missed out on NEOM by sticking to my rules--I noticed it at .11 and refused to buy to high) UPSIDE IS I DO NOT HOLD 500,000 SHARES OF NEOM AT.43 CENTS---DOWNSIDE I DID NOT MAKE 50,000 DOLLARS. I DID MAKE A COUPLE OF GRAND BY PLAYING THE GAP AFTER THE RUN. IF YOU MISS THE RUN PLAY THE GAP. ie THE DEAD CAT BOUNCE. LIKE THE MAN SAID--THERE IS ANOTHER STOCK JUST WAITING TO BE BOUGHT. 6. I never think about GETTING RICH OR RETIRING on penny stocks..My goal is to make $200.00 a day and not lose my original investment. Most often I exceed my goal. (When I lose money it is usually because I have not followed my own rules) 7. I never ride a stock down--I will sell it and re-buy it. EXAMPLE: BOUGHT CTKH AT .002 AND .0022. SOLD HALF AT .0046. SOLD HALF OF THAT HALF AT .0069. IT STARTED GOING DOWN AND I BAILED OUT AT .006. NOW LOOKING A BUYING AGAIN. LOGIC-DO YOU ACTUALLY BELIEVE MUTUAL FUND MANAGERS WOULD HAVE HELD ONTO IBM IF IT DROPPED 50%?????--(WELL SOME WOULD) LOL I THINK NOT..RIDING A STOCK DOWN IS LIKE THROWING 50% OF YOUR MONEY OUT OF A CAR WINDOW AT 75 MILES AN HOUR AND HOPING IT FLIES BACK TO YOU. OR BETTER YET "IF YOU LOVE IT LET IT GO--IF IT LOVES YOU IT WILL COME BACK TO YOU". THATS BULL****--IF IT LOVED YOU IN THE FIRST PLACE IT NEVER WOULD HAVE LEFT.....I have actually bought and sold the same stock 3 times in one day. ATNG WAS A 3 TIME BUY AND SELL. BOUGHT AND SOLD IBZT 3 TIMES ONE DAY. (not usually but it does happen).
8. I never insult or bash another fellow trader..I respect other people's trading methods. I LEARN FROM THEM. What the hell--It's not my money.....( It's not like they are setting on third base at a black jack table and take a hit on 15 and the dealer has a 6 showing and I have $500.00 dollars riding on that hand). Remember it is us against them. I DO LISTEN AND LEARN AND BENEFIT FROM THEM. 9. I never trade with MONEY that I am not willing to lose. 10. I follow the market and market trends (not just the stocks) 11. I never buy a stock without reviewing, analyzing and understanding the charts. I learned how to read charts and believe in them...They do not lie..I MAY NOT KNOW WHAT A COMPANY MAKES OR PRODUCES OR SELLS WHEN I BUY IT BUT I DO REVIEW THE CHARTS ON THE FLY AND PUT IN A BUY ORDER FOR SMALL AMOUNT TO GET IN THE DOOR. MOST TRADERS KNOW WHEN A RUN IS COMING AND HAVE ALREADY DONE THE DUE. 12. I never get gambling and investing confused. I INVEST IN REAL ESTATE...MY BUSINESS...SMALL,MEDIUM AND LARGE CAP STOCKS WITH A HISTORY-MANAGEMENT TEAM-FINANCIALS--ASSETS--CASH--ETC..30YEARS+ GROWTH AND INCOME MUTUAL FUNDS WITH 12% OVERALL GAIN IN GOOD AND BAD TIMES (THEY ARE PROFESSIONALS AND THAT IS THEIR JOB). I GAMBLE WITH PENNIES.. MY DEFINITION OF PENNIES IS ANYTHING UNDER $1.00. 13. I always take 50% of earning from each week and e-transfer into INTEREST BEARING TAX account. THEN I LEARNED HOW TO INVEST THAT MONEY IN REAL ESTATE, IRA, TO ELIMINATE PAYING TAXES. INCORPORATE AND PROTECT. 14. I ALWAYS TAKE MY ORIGINAL INVESTMENT OUT OF THE EQUATION WHEN IT IS FEASIBLE TO MAKE ENOUGH MONEY ON THE TRADE TO MAKE IT WORTHWHILE. IE..WHEN THE STOCK IS ON A RUN UP SELL PORTIONS AT A TIME TO RECOUP ORIGINAL INVESTMENT. IF IT IS A STOCK I PLAN TO KEEP LIKE TFSM--I BOUGHT AT 1.06. AT 2.12 I SOLD HALF AND RECOUP INVESTMENT AND KEEP 5000 SHARES FOR FREE. 15. I ALWAYS HAVE FUN......ACTUALLY I HAVE A BLAST.... 16. I LEARN SOMETHING NEW EVERYDAY... 17. I CAN'T SPELL, TYPE WELL OR USE PROPER GRAMMAR--AND I SWEAR LIKE A SAILOR..BUT IF YOU PUT A DOLLAR SIGN IN FRONT OF IT---I WILL FIGURE IT OUT.......THAT CERTAINLY DOES NOT MAKE ME STUPID..IT MAKES ME SMART BY RECOGNIZING MY LIMITATIONS. LEARN YOURS. 18. I ALWAYS MAKE MY OWN DECISIONS AND TAKE ALL RESPONSIBILITY FOR MY ACTIONS. 19. I LAUGH EVERYDAY..MOSTLY AT MYSELF AND SOMETIMES AT OTHERS... 20. LAST AND MOST IMPORTANT--THE MARKET HAS A RHYTHM--EACH STOCK HAS A RHYTHM--LIKE GREAT SEX--A RHYTHM..FIGURE OUT YOUR OWN RHYTHM WITH THE MARKET. IT IS CALLED DUE DILIGENCE. LEARN THE RHYTHM OF THE CHARTS. THE REST WILL FOLLOW. TAKE THE TIME TO PASS ON YOUR GOOD FORTUNE TO OTHERS. WHAT GOES AROUND COMES AROUND AND YOU CAN TAKE THAT TO THE BANK.
quote:Originally posted by Ryan: Hey Slim, I downloaded quotetracker, and it is a great tool. I love your idea of having a 52 week low alarm. I would like to do the same with every stock under a buck. But where did you get your list of all these stocks. I have seached and searched but cant find exactly what I am looking for. I saw a list of all otcbb but too many of those are not in my price range. I dont wanna spend days setting this up in quotetracker for it not to be right. Any help is appreciated.
quote:Originally posted by ryanc: Slim, when Riding the Bull, do you what do you mean by "2 ticks above the previous close"? Do you use this technique with penny stocks?
Two ticks would be .0001 to .0003 thats what I meant by two ticks. Yes I only play pennies!
Posts: 307 | From: Elgin SC US | Registered: Mar 2004
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quote:Originally posted by punkrocks3401: Questions for Slim from the newb:
1.What is a "Oversold Stochastic Indicator" and when do you know it "oversold" 2."MACD on the upward swing" was does that mean too. 3. Volume if over 9 million and under how much?
Friend I think these questions may be beyond the scope of this forum. Email me at bucky@rbmg.com and I will help you if you like!
Posts: 307 | From: Elgin SC US | Registered: Mar 2004
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