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Hello. I have been reading a lot of the posts you guys write, and I must say that you all seem to know what you're doing. I am new to the investment game, and am looking for some help. I am 20, and have $1,000 in my online investment account. These penny stocks are what I want to deal with, and am wondering who the best person in this forum is to follow. I visit sports gambling sites, and there is always a guru. So i am wondering who the guru here is. Thanks
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check out Frogster he hit a good pick for a lot of players, but dont jump into any one stock completely and set a target sell price and sell when it hits then move on good luck
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quote:Originally posted by golferman: Hello. I have been reading a lot of the posts you guys write, and I must say that you all seem to know what you're doing. I am new to the investment game, and am looking for some help. I am 20, and have $1,000 in my online investment account. These penny stocks are what I want to deal with, and am wondering who the best person in this forum is to follow. I visit sports gambling sites, and there is always a guru. So i am wondering who the guru here is. Thanks
Purl Gurl
-------------------- Nashoba Holba Chepulechi Adventures in microcapitalism...
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Golferman, I'm much like you, I'm 21 started with $1500. I've been watching the forums for a few months, It all started when I was doing my own DD "due diligence" on a stock "Cybl" the stock was trading at .025-.02. I decided to put a limit order in a .0155. As I watched the orders get filled going lower and lower with 30 mins left on the day, I saw the last sale of the day at .016. Needless to say, I was bumed. In the morning the price had gaped back up to .023 and I figured naw I dont want it. Well later on that day CYBL was a featured stock on a hombuilderstockpicks website. Within 4 days the tiny .016 stock went to .20 (thats a %1200 increase)(that would have made me 8k with the $900 I wanted to invest) then came back down and rested at .13. The lesson I learned was a good one, one that has made me a profit ever since. My suggestions to you are
#1 get a good broker - I use Ameritrade (1K minumin), quite easy to use with enough features to make it all you need, and only $11 trades(no matter what the share price - ...do not use scottrade). Choicetrade (no minimum) is a great broker at only $5 trades, however they lack up to date quotes (20min delay) you have to pay an extra $20 a month to get streaming quotes.
#2 Susbcribe to level II quotes($10 a month with ameritrade). They will tell you what the next so many bid and ask prices are, and how many orders of each.. this will give you a much better outlook on the momentum of the stock. Also giving you a much better idea of where to place your limit at.
#4 I trade mainly on the OTCBB (Over The Counter Bulliten Board) Stocks on the OTC are stocks that dont meet the requirments to trade on one of the exchanges(nyse,amex,nasqaq). They have the greatest risk, but also the greatest rewards.
#5 If you want to make money be a penny trader. You can find a nice $3 stock with ok movement say 4 cents a day and rest your money on that if you just want to make a profit. But if you want to make huge profits and double, triple, or gatrazipple (lol) your money you want to find hot penny stocks (.10 and under) The biggest gainers are the ones they don't have to far to go to double. I wouldn't rule out any other type of trading, right now Im vested in NWPO (bought today($600) at 1.41 own 435 shares, and DHYK bought at .06 own 10,000 shares. I made $50 today on NWPO (not to bad so far but this stock is looking like it's going to go to at least $3).
#6 Buy low. Learn to read MACD charts at www.stockcharts.com they tell you when a stocks momentum has bottomed out and is about to start heading up. Check the top losers for the day here http://www.investcom.com/us/mplbulletin.htm If you can find a stock that dropped lower than it should have for the day.. buy it and watch it bounce right back up the next day. Make sure the fall in price isn't because the company just found out they put the decimal place in the wrong spot on there last quarterly earning report. in other words check that companies news. Alot of times a slight drop in price will trigger stop loss orders to become market orders and execute at a super low price. One example that I just made a nice profit on was CGXP.OB http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=cgxp&sid=0&o_symb=cgxp&freq=1&time=6I bought at $1.25, and like a happy but scared idiot I sold at $1.70
#7 Low PPS (price per share) + High volume usually means the stock should rally slightly or greatly. Rally = enough confidence to make the stock PPS increase giving you a chance to unload(sell) for profit.
#8 High PPS + low volume = Risky (approach with caution)
#9 High PPS + High volume = look for news, watch for pump and dump. "BEST STOCK IN THE WORLD TO OWN RIGHT NOW!!!!" If there is news to explain the high volume, then use common sence and do DD into the stock.
The reason I said to not use scottrade is because I originally invested with them $1500. I did a little bit of trading(I didn't know what I was doing) I bought stocks that were "doing good" and right after I bought them they were doing bad, I lost ½ of my investment $750 in the first 2 weeks. I discovered penny stocks and when I went to buy some I realized that scottrade charge the cost of what you wanted say $500 + ½ of the principle which would have made it $750. Once I realized that I transfered accounts to ameritrade, and have been happy since. I have brought my account up from $750 to $1300 this month. I've learned so much more this week, I've consistantly made gains on every trade I've made this month. $550 isn't a whole lot.. but considering I technically started with $750, its not bad. As concerning the best in the forums to follow.. thats really hard to say, I would say learn to read the signs and the news on your own.. and listen to people suggestions and test them against your own due diligence. Once and a while someone will come out of no where with a tremendous stock (like NWPO, I saw it hit the forums by "Frogster" at .54.. I put it on my watch list until today. I've watched it triple, with more to come.
posted
Prophet, you seem like a genius. First, are you really only 21 years old? Next, what time of day is best to buy? Night, or before opening? I would love to see all your posts, and stock picks. Thanks for your help. You overwhelmed me with your reply to my post. Thanks
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quote:Originally posted by FatherOfTwo: Prophet.... You have my vote of someone to listen to. Your post is very well written and any new people should take note.
the one exception to it however is that Scottrade is not as bad as what you say.
they charge $7 per trade + 1/2% of the principal.
So, buying $1000 of stock is a $12 commission!
caught that, also, Fot--otherwise, an excellent post...
-------------------- Nashoba Holba Chepulechi Adventures in microcapitalism...
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One more correction, Choicetrade does offer real time quotes for free. You can only get one real time quote at a time but it works AND level II's are free. I signed up for Ameritrade but luckily I was told about Choicetrade before I funded the account. $5 commissions vs. $11 commisions, I'll take $5 commissions every time (more profit for me)
;-)
-------------------- All of my posts are based on my opinion. My opinions are based on the info available to me at any given point in time. Do your own DD and see if you concur.
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Oh no buddy.. far from a genius.. if it wern't for everyone else in this forum I would only know 1/4 of what i just told you. I have heard something somewhere from someone about east cost lunch time being a "dead" time.. but havn't really found it to be true yet. I've done absolutly nothing but watch all 1000+ of my my list symbols for the last month straight.. I just summed my month up in a few paragraphs for ya. Yes Im 21.. and I "Need" to make trading my job.. so im working at it.
Generally stocks will rally a little bit in the morning. From open6:30am(est) to about to about 10-11am(est) then pull back.. sometimes pulling back more than they opened at then the price will correct between 12:30-2pm.. and at the end of the day pay close attention.. a strong close(high volume) will usually mean a rally the next morning. A High PPS+weak volume at the end of the day may gap down in the morning so don't place your limit at the last ask price in the am. Most importantly.. compare 1year, 6 month, 3 month, 1,month 10 day, 5 day, 2,1day charts and volume.. with the latest news and you should be ok.. Once and a while you have the incredible haulk stock and it doesn't pull back at all.. and that usually comes from a juicy PR.
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Oh no buddy.. far from a genius.. if it wern't for everyone else in this forum I would only know 1/4 of what I just told you. I have heard something somewhere from someone about east cost lunch time being a "dead" time.. but havn't really found it to be true yet. I've done absolutly nothing but watch all 1000+ of my watch list symbols for the last month straight.. I just summed up my month in a few paragraphs for ya. Yes Im 21.. and I "need" to make trading my job.. so im working at it.
Generally stocks will rally a little bit in the morning. From open6:30am(est) to about 10-11am(est) then pull back.. sometimes pulling back more than they opened at then the price will correct between 12:30-2pm.. and at the end of the day pay close attention.. a strong close(high volume) will usually mean a rally the next morning. A High PPS+weak volume at the end of the day may gap down in the morning so don't place your limit at the last ask price in the am. Most importantly.. compare 1year, 6 month, 3 month, 1,month 10 day, 5 day, 2,1day charts and volume.. with the latest news and you should be ok.. Once and a while you have the incredible hulk stock and it doesn't pull back at all, all day.. and that usually comes from a juicy PR so ride that wave, and dive off once the volume dries up.
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You can write a book with that. I certainly know what you are talking about, but I know I would never be able to explain it as well as you have Prophet.
Another super important factor you have to remember is there is a period of time that you must wait for your funds to settle after a trade. If you want to be a day trader right out of the gate.. think again.. Something I hadn't realized when I bought and sold my first stock was there is a 3 day waiting period for funds to settle. So lets say theres like 3 or 4 stocks that keep you up at night.. we all have acouple but with only 1k to play with your going to have to think real hard to make the most profit out of all 4. Splitting 1k up 4 ways would cost you $80 round trip on comissions (with ameritrade..) Diversifying is ok.. but when you diversify too much you shoot your self in the foot. Now back to the story... You see 3 oprotunities to make profits with the 3 stocks your watching... invest in the one you see the as the fastest growing.. and sell when you have a comfortable profit. Ok so you just made $700 in one day. Your a big man with $1700 now, well all $1700 will be availible for trading immediatly after the sale of that stock. Next thing you know you see another huge oppurtunity in another stock the same day, so you throw all $1700 at it. Now if you sell that stock that you just bought the same day.. you will not be able to buy another stock for 2 days. The funds from the first sale must settle. The moral of the story is that if your using all the funds in your account to trade with, keep in mind that the funds from the secound stock you sell within a 3 day period of a stock that you bought and sold will need the 3 days to clear so it may be worth holding on to that second stock for 3 days or longer if it takes a dive. Wow.. that sounds confusing but think about it this way. If your using all the funds in your account to buy and sell 1 stock at a time you can only make 2 sells every 3 days. Think thats right... correct me if im wrong.. or if that just plain confusing.
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Well, most of the good tips have already been put out there. One of the good lessons I found out the hard way is don't chase a stock when it's runnin, cause if you think you missed the train, don't worry, there's another one right behind it.
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