posted
Hello, I don't want to give my life story but we all have our reasons for investing do we not? I am an artist sick of dead end jobs so through various avenues I am trying to change my life, starting to invest in penny stocks being one of them. I will probably have about $500 canadian money to invest, the commision is 29.95 per trade plus something on top depending on how much invested and how much the stock is. I have no intention of dedicating my life to researching companies and such, that in mind does anyone have any basic advice for me?
First advice is never believe anything you read on any chat board. Are you looking to get into 1 penny stock or a couple, do you want to day trade or buy a penny stock that has long term potential and just sit on the stock for a year and then sell for a nice profit.
The first thing when picking a penny stock is, HOW DOES THIS COMPANY MAKE ITS MONEY. You would be surprised at how many penny stocks don’t have any income. There is much more to it then just that, but I don’t want to post 10 pages of stuff. Good luck to you and any other newbie’s.
IP: Logged |
posted
oops, just thought I was gone. Before someone tells you to buy art supplies and sell a piece for $10K, here's some fol: Top traders, eg, several on this board, make split-second decisions sometimes/often w/o any of the research you want to avoid. But they've also got a _minimum_ of prolly $25k not to "play with" so much as to use as a tool to pry funds from a moving stock. That's why it's called capital instead of money. They might have a couple of machines and, say, 3-4 monitors and subscribe to various feeds, run through specialized software filters. They use precision timing coupled with honed experience at reading liquidity, volume, momentum and L2 structure. They're gutsy, quick on the trigger, disciplined...and won't whine if a thousand-dollar trade goes south. Trying to play along with them as a newbie, your $500 likely would vaporize in front of your eyes before your brain could recognize what just happened. Kinda like watching a guy walk away after he just slit your throat...What you *could* do is re-evaluate your distaste at research and paper trade for a while until you can find a sub-penny stock that "someday" will turn into a real investment. Start by reading the newbie info on this site...and get a new broker. Yours is too high...jmho
ok, now *really* out--->>>rock n roll hoochie koo!
-------------------- Nashoba Holba Chepulechi Adventures in microcapitalism...
IP: Logged |
posted
I would use my $500 to invest in more than one stock for sure, I would like to use it for 10 stocks at the most.
The $30 commision would not allow me to day trade, so stocks that have long term potential is where I would want to start out.
I understand that my disinterest in serious research is not a good angle to come at it. The stock market seems like something where the more you know, the less you know, and I feel I would get overwhelmed. But maybe that is naive in itself.
My broker is a company through a bank, I don't think with the amount of cash I have now I could put down the money for a broker.
I wrote down some of the ticker symbols on this forum as a starting point, would you say that is advisable from where I am coming from? Of course I would look into the particular stock a bit before I actually put money down.
posted
oh yeah, forgot to mention, there is nothing worth reading at Xechem's website except its press releases, because, besides its lawsuit with BMS, the only thing this company has going for it is its sickle cell anemia drug. and the only mention of that is in its press releases. which u can get from a quote service.
IP: Logged |
posted
Soothsayer, I did what you want to do when I started. I took $1000 and bought 7 penny stocks, all random with little DD done. All those stocks went down and I learned that the more DD you do, the better off you are.
Now I spend many hours trying to find a solid penny stock that will have the potential to move to a higher exchange, increase profits over time, has solid management, good share structure, and not overvalued.
When I find a solid penny stock, I watch it and read all the chat boards, PR’s, filings, and contact the company and any companies that do business with them. If I like what I see and think in 1-2 years the stock could be on a higher exchange or posting higher profits and maybe a stock buyback or dividend, I then buy and hold. But you must watch your stock weekly if not daily; sometimes a great stock can have something random happen that could crush it.
We are not playing roulette here, if you put down 10 bets, but the ball does not hit any of them, you are done. But if you are playing Texas Holdem and you have a flush (perfect penny stock), and you go all in, jackpot.
posted
soothsayer, the following by Northernlights is top notch advice:
"When I find a solid penny stock, I watch it and read all the chat boards, PR’s, filings, and contact the company and any companies that do business with them. If I like what I see and think in 1-2 years the stock could be on a higher exchange or posting higher profits and maybe a stock buyback or dividend, I then buy and hold. But you must watch your stock weekly if not daily"
Look into ChoiceTrade as a broker. You seem to be paying far too much per trade. Their trades are only $5...check them out, you'll save money there.
IP: Logged |
posted
Not bashing you but if you don't want to do research you are wasteing your time and also ours. Just buying penny's is chancy enough but buying them without looking very hard at the company is just silly. Buy lottery tickets with your 500.00 you will have as good or better chances of making money.
Also with the comission base you are paying buying 10 stocks would cost you 300.00 to get in and 300.00 to get out. Leaving 200.00 to invest If your stocks went up 200% you would have 300.00 left of your 500.00 And thats before taxes.
IP: Logged |
posted
poorman is right, you have a better chance going to the casino or playing the lottery if you chose not to do any research. I have spent probably +100 hours researching the penny stock that I have most of my funds into right now.
I found it back in December and followed it for awhile. I bought a small amount of shares and still kept doing DD. Then the stock was slapped with a lawsuit by a huge billion dollar company (GSK). The price fell 50% within 2 weeks of the lawsuit news. I was about to sell when I put in some extra DD and found out that the lawsuit was frivolous and 2 of the 4 counts have already been dropped. I addend more shares to my position at the new low price of only 1 cent.
I still put in DD on the stock and feel more confident about it even though it is a pinksheets. They were planning on filing with the SEC by summer, but the GSK lawsuit has diverted funds from filing to be used for the lawsuit. So now they plan on filing by first quarter 2006, which is fine with me because I am a long.
The GSK lawsuit would have crushed most pinksheets, but this one has kept on making progress even though it has the biggest company it its field breathing down its back. They have set up a nation wide distribution agreement with Walgreens and are now selling there product right next to GSK product for 1/3 the price.
I have spent months looking through penny stocks and have come across only a couple that I would trust putting my hard earned money into for the long term. People have already posted stocks on this board for you to buy like QBID, I am not saying QBID is a bad investment, but don’t listen to anyone that post stock picks in a newbie thread, that is why I did not name the company I was talking about, because I think it is wrong and deceiving to tell newbie’s what to buy, unless they ask first.
IP: Logged |
I have also noticed that sooth has only chimed back once; I think sooth does not want to put in much time with this penny stock thing. Which I can understand, my first month I did not want to put to much time in, but I learn quick DD is your only friend in pennyland.
Regarding Northerlights 1 – 4, they just didn’t make the cut.
IP: Logged |
posted
Soothsayer; Everything said here about DD is true, trust me I am in a stock that I didn't DD on and right now it's sitting way lower than I bought in at. The one thing I can say is I didn't realize how much I would enjoy researching companies until I started doing it. It is for me a lot of fun. Good Luck.
IP: Logged |
posted
Norther, I know you're not pumping. I just thought it was amusing about not naming the stock you were discussing. re Sooth: I started to ask him the reverse question--tired of stocks, so I think I'll get into art. But don't want fool around with learning all that boring technique, color theory, etc.. So, should I start with pastoral oils, realistic acrylics or maybe take a fling at abstract watercolors? lol Have a great week in the market, Norther...
-------------------- Nashoba Holba Chepulechi Adventures in microcapitalism...
IP: Logged |
I have made the decision to enlighten and entertain researching, for my money's sake. I just wonder what sorts of things I should be looking for, and what questions should I be asking of the business and it's partners.
I have looked into a stock, ticker symbol PFCE. It is the Pacific fule cell corporation. It looks as if they are having some progress.
IP: Logged |
COMPANY NAME : PFCE -- Pacific Fuel Cell Corp. ADDRESS : 131 N. Tustin Ave. Suite 100 Tustin, CA 92780 USA PHONE : 714-564-1693 COMPANY OFFICERS : Michael Levine, Pres. & Sec't. COMPANY WEBSITE : NA COMPANY TRANSFER AGENTS : Computershare Trust Company Inc., Golden, CO 80401 BUSINESS DESCRIPTION : Not Available
MAJOR HOLDERS : --------------------------------------------------------------------------------
BREAKDOWN : % of Shares Held by All Insider and 5% Owners : NA % of Shares Held by Institutional & Mutual Fund Owners : NA % of Float Held by Institutional & Mutual Fund Owners : NA Number of Institutions Holding Shares : NA
CURRENT BUSINESS NOTES : Formerly=Magnum Ventures, Inc. until 5-99 Formerly=RadioTower.com, Inc. until 11-01 ABRIDGED BUSINESS SUMMARY : NA ABRIDGED FINANCIAL SUMMARY : NA CURRENT CAPITAL CHANGE : shs increased by 3 for 2 split Ex-Date: 2000-06-21 Record Date: 2000-06-20 Pay Date: 2000-06-21 STATE INCORPORATION : NV ESTIMATED MARKET CAP : Not Available COMPANY DIVIDENDS : NA COMPANY FLOAT INFO : NA COMPANY CLASS NOTES : NA COMPANY OUT SHARES : 61,940,000 as of 2002-11-13 AUTHORIZED SHARES : NA
IP: Logged |
posted
In my opinion you have to figure out what style of trading works for you. I would also like to suggest choicetrade at $5 per trade. Since I got them 2 weeks ago my account is up 200% since I am keeping more profit on smaller trades. I would suggest trying to learn how to read charts at http://stockcharts.com/education/ or if someone suggests a better site try there. Then you could go here http://stockcharts.com/def/servlet/SC.scan and read the daily scans for free and maybe pick a few that have charts that interest you. Then you can maybe try some of the sites listed above to do the DD on them. Then you can start to make your own picks and observe others posts DD them and decide if they are right for you or not. If you make any money with your first $500 you will most likely get excited and be more willing to do the DD because you will see it is producing results. So do it now not when you are down to your last $50 like tons of other people did.
IP: Logged |
When I first started trading Pennies I thought I had found a GOLD MINE here at ALLSTOCKS. I figured if I picked several Stocks from the list of these STOCK threads in the Micro-Penny section that I would surely retire a RICH Man very Early. After All many of the stocks were Pumped so extreme that some would actually STATE that we would ALL be RICH VERY SOON.
I found out the hard way that these Investors were PUMPING there stocks to help Push the Stock Price upward SO That they could Profit Quickly THEN BAIL OUT. Leaving people like NEWBIES holding shares that would eventually lose all of there original value.
Every once in a GREAT WHILE (perhaps once In a year) YOU MAY STUMBLE UPON a MONSTER GAINER. Thats what happened to me last Appril 2004. I Had been reading the QBID thread and decided to invest just a few hundred dollars into QBID. After all Everyone on that board had Exclaimed that the price would REACH at least $4.00 from .0020 WOW. HOW COULD I LOSE. The next morning those few hundres dollars became THOUSANDS and my Account had turned BRIGHT GREEN.
QBID was the exception to the GAME. This does not always happen with PENNIES. In fact like I said you would be very lucky If you happened upon just ONE MONSTER PENNY PICK in a YEAR.
Always do your OWN DD on top of others DD. Check there stories out to make sure its LEGIT. Then Pick a stock that is near its 52 week LOW. That way IT can ONLY GO UP from there. Never chase a stock that has already begun to FLY. I used to do this in the early days when I first started. I always lost BIG BUCKS DOING THIS.
AND most imortantly "GOOD LUCK" ITs a CRAP SHOOT but Very ADDICTING !!!
Earth_Man
-------------------- "When you have got an elephant by the hind legs and he is trying to run away, it's best to let him run." ...... Abe Lincoln ...... 1.5 million Strong :)
IP: Logged |
posted
I am canadian so I am not sure if choicetrade will accept me, I will soon find out.
There is an insane amount of information at stockcharts.com, I am going to start to read the overview today and hope that it isn't over my head. Is all the information at that site relevant to me at this point? I am going to look for some companies that hopefully have some decent turnaround after a few months or something.
IP: Logged |
posted
Well it is your money. Here is a link that explains the scan link I provided above. It will break down what kind of stocks you maybe looking for.
Also try going to http://www.barcharts.com and entering your symbols and try the opinion option it can tell you what they recommend for each stock.
IP: Logged |
UBBFriend: Email this page to someone!
Printer-friendly view of this topic
![[Big Grin]](biggrin.gif)
glass - don't kill me for using your graemlins ![[Smile]](smile.gif)
