posted
I am new to penny stocks, and i am finding my self in a fix. Three years ago i opened up a Td Waterhouse account and used my tax refund in hopes to make some quick money. I bought on advice some penny stock companies, Namely LBTN, and PCCl , But through the years and many reverse spilts i have basicaly lost all of my money.I am under the inpression that in order for me to make my money back i need to hold on for the long term and that eventually i'll make my money back , Or should i forget it. I recently borrowed a cash advance on my mastercard and bought some ECUI and CMKX. Do i hold on these long term also or sell as soon as i get any kind of profit . Plus does anybody know of a better broker than TD waterhouse for penny stocks . There commisions are way to high , for E.G. on 10,000 shares of ECUI at .014 i paid $93.00 in commision . Thats abit high for only $140 order. How can i even make my money back at that rate. Any body have any thoughts on ECUI or CMKX . I only have $30 invested in Cmkx so if its revoked its not that bad a deal.
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posted
Oh my goodness....Don't fall in love with any penny stock.....In and out.....I just posted some advise on another board.....Just my 2 cents. Good luck.....I use Scottrade....I like the live help.....7 dollar trades.....small percent.
Now look at the stock I bought and sold this morning.
BLYC.
The first think I looked at was the Previous days candle....and the trend...Seemed to be going down right? But, it caused an inverted umbrella, indicating to me a change in trend. Guess what? IT WENT UP....See todays nice buying candle?
Next the RSI....the squiggly line with the numbers 70. 50. 30 on the right....below 30 indicates the stock is oversold (time to buy). Over 70 means the stock is overbought...(Time to sell) Now I saw this where the RSI was at 50 BUT, Headed north...TIME TO BUY! NOW the Bollinger Bands are the red lines on the chart...see how they are coming together on the down trend...PRESSURE MY FRIEND PRESSURE!!!!BUY....As they widen SELL! on the uptrend...
THE MACD....the Black and blue lines at the bottom of the chart....with the blue hill and valley....they stock has been below the .000 line for sometime but the MACD lines are coming together and Kissing beginning to go up...TIME TO BUY.....when they are coming together and up top beginning to come down....TIME TO SELL.
These are just the basic indicators that I use.....I also could not trade without L2.....where I can see how many MM's are where and at what price....DEFINATELY A MUST......Now good luck and a few more learning Links.
posted
Just a little advice there polarbear, if someone like lilpennypincher gives you advice, I can't strongly reccomend enough to follow it to a "T". There are investors here at allstocks that genuinely do care and want you to succeed. I am lucky, my guardian angels have saved my butt. Just listen when people try and help you.I would have a lot more money if I wasn't so damned bullheaded about things. Good luck in your trading
Hilander
-------------------- If it wasn't for bad luck I'd have no luck at all.
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Wow, i cant believe took a cash advance, thats not a good idea. Its etched in stone that u should play with money that u CAN afford to lose. That being said, i dont know u personally, but cash advance is not a good idea to take for pennys, imo, anyway.
Secondly, like lilpenny said, dont fall in love, theres no point, they come a dime a dozen, lol. I feel like mr. love or something.
Third, like hilander said, there are some great people here. They throw stocks out at ya that u normally wouldnt have caught, give their opinion, and really want others to succeed, cause its us vs. THEM
Lastly, set rules for yourself, emotions can make or break you. Its hard, i sometimes finding myself breaking these rules, therefore; paying for it.
At any rate, good luck, and welcome to a whole new world
-------------------- "I sell ice in the winter, i sell fire in hell, I AM A HUSTLA, BABY, i sell water to a well!"
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Most that hold penny's long term just lose their money. Really pennies are best played short term. Either as daytrading or swing trading. They are here for a reason. There are a lot of small businesses that look great as a company but their stocks are bad. This is the main place they get their financing unfortunately. So dilution is real common. Also this is where the not so honest like to play. But the good part of pennies are their volatility. This has a good and bad side to it. If you can learn how to follow trends in the penny market then you will be ahead of the game.
Lil is great, her advice is something worth following. Don't let anyone try and tell you that a penny stock is worth holding. Never listen to a pumper. Always look for cheerleaders to leave the game. But most important is after a run LEAVE. Don't hold a falling stock. If it is going to bounce then you can always buy back.
Learn Technical Analysis. This will help you find the bottom plays. Level II are great but if you don't have them you can survive but level II's help find the optimal enter and exit points. Never buy a stock that has more then 5 pages on the board. Well maybe not never but it is a clue of which stocks have people that got caught by the last run. Some say charts don't mean much in pennies but that is not true. Charts give you key information that can help find the bottom plays and when to sell. If nothing else learn 3 things on a chart. Bollinger bands, MACD, and RSI. Of course volume and candlesticks can help but the 3 above is a must to learn in detail.
Below is a DD collection that I have put together. I hope it helps.
DD for otcbb and pinksheets
Here is some of my favorite places to research for the best due diligence.
Try these two DD tools to be quick and good with your facts. At pinksheets in a matter of seconds under Company Info I can give you o/s, any r/s, company name changes, or planned changes and more. Quotetracker is a program you install on your computer. I wouldn't survive without it in a quick paced market. Tons of TA and FA with dd. Shoot pinksheets is my homepage on Firefox browser for quick reference. This is the first two places I go for fast due diligence.
www.pinksheets.com {Company Info tab is loaded with information} {SEC Filing Tab - wow} {News Tab - Pr's at your finger tips}
www.quotetracker.com - after you set it up add a symbol quickly then charts, news, research, and raw data at your finger tips. Great charts.
DD is mainly knowing where to go.
FA Fundamental Analysis
www.pinksheets.com - first place to look!!!! Go to Company info for o/s. r/s, name changes, and many other facts. Go to SEC tab to look for filings. News tabs for latest news that may not show up through normal wire service.
www.sec.gov latest filings, litigations, proceedings, or suspensions
Recovering a Loss
Loss - Gain Needed to Recover Loss
10% -- 11.1%
20% -- 25.0%
30% -- 42.9%
40% -- 66.7%
50% - 100.0%
60% - 150.0%
75% - 300.0%
90% - 1000.0%
Timing your entry and exit from the market is critical to making money and controlling losses.
These are MM signals. 100 > I need shares 200 > I need shares badly but dont take it down to get them. 300 > Take the price down to get shares.... 400 > Trade it sideways based on Supply and Demand 500 > Gap one way or the other, usually to the direction of the 500 trade. Sometimes -if in the middle -keep the price right where it is.
-------------------- Invest with your brain not with your heart.
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Very Good advice Ric and Lil. PB it's Hard to even follow up on such a wealth of info. My only advice is be careful of the boards! DO NOT believe everything you see here or everyone that posts on the boards about their latest and greatest stock picks. I really think only a handful of members are on the up and up and know what they are talking about. Look at the members profile and see how long they have been a member. The longer they have been here, the more posts they have (300+ posts is a good start) and the higher their star rating is the better. Just watch and read and believe half of everything. NOW put your trading program on Virtual Trading for 6 months! It's trading with Monoply Money untill you get the hang of playing picks, swing trading day trading or whatever style you may choose to use for yourself. Last thing... NEVER BORROW MONEY TO TRADE THAT HOT STOCK TIP! You will loose your shirt your home your marrige and anything sacred in your life. Sounds like my Dad before I went on a date " No sex, No drugs, No Drinking and have a Great time" LOL. That's all I have PB Good Luck in your trading, Chopper Out.
-------------------- It will run when you least expect it. :)
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Thank you all very much. I have been paper tradeing for over a year now , the only differance is i started with $100,000 dollars and have been playing with big compaines on the NYSE and Nasdq, yet i mangaed to be up $150,000 purly using Fundamentals. Yet in reall life i lose money on pinks by looking at the compianies Fundamentals and what i think are there prospects andmarket potentical.Lets use ECUI as an example ,i saw a report a while back saying that they expect to see ECUI at $5.00 a share within two years,because of growth in the VOIP area,I bought in at .015 it would be a shame to miss out on that $5.00 a share .Decsions are though ....
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IMO, fundamentals dont seem to mean much in pennies, simply because of the amount of scams, level of violatility, etc. U gotta learn techs to get ahead in pennies.
-------------------- "I sell ice in the winter, i sell fire in hell, I AM A HUSTLA, BABY, i sell water to a well!"
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