posted
There are some successful people here based on what I have read... there are also some very helpful people here who try to help out the new investor.
There are also some who are not so helpful who have as their goal getting you to buy stocks while they are pumping up the price then they sell leaving you holding the bag.
Pennies are very volatile and can be outright scams... they are also very prone to pump and dumps, as I describe above, so please do thorough research before buying anything.
In fact it has been recommended more than once on this board to invest on paper for a while until you get a feel for how to determine what is really a good buy and, possibly even more important, when to sell and take profits.
On another note, pun intended, let me know if you don't already have a regular buyer for your seller financed notes... I am a buyer.
I will not mention it again so as to pressure you so feel free to respond about stocks and if you don't mention notes I will not either Posts: 36 | Registered: Jul 2005
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no such thing as "penny-stock investing" unless it's a mistake...this is a traders' board. Sure, lightning strikes occassionally: would you "invest" in a proposition based on the next place lightning strikes your neighborhood?
posted
I'm a newbie too, but a few others have passed these along to me to help me get a basic understanding of what to look for, Remember one thing - NEVER buy just based on anyones recommendations, unless you trust them. There a some good honest people on this board, but there are some who as mentioned above, will pump and dump, leaving you holding the bag. I fell for some of it when I first started. GOOD LUCK!!
-------------------- I'm not going to comment further, as I refuse to get into a battle of wits with an unarmed person.... Posts: 546 | From: Columbus | Registered: Aug 2005
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no such thing as "penny-stock investing" unless it's a mistake...this is a traders' board. Sure, lightning strikes occassionally: would you "invest" in a proposition based on the next place lightning strikes your neighborhood?
--Tex
Please excuse my wording. Everyone here is investing in any stock that they put thier money into. Weather it be a short-term trade or not.
I am here to trade just like everyone else.
Again, excuse my noob termanoligies
-------------------- Don E Posts: 3 | From: NC | Registered: Oct 2005
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posted
OK Don - you're 4given - just don't let it happen again!!!
LOL - J/K!!!
-------------------- I'm not going to comment further, as I refuse to get into a battle of wits with an unarmed person.... Posts: 546 | From: Columbus | Registered: Aug 2005
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posted
I'm a newbie as well. I've lost money, so I may not be the best person to tell you how to get rich. However, I may be able to tell you some of my mistakes so that you wont make them. Here's two big ones:
1) Be careful not to buy after the run. Say big news comes out about ABC stock at 9 am. Someone posts a message about it at 9:30. You read the message at 10:30 and notice that the stock is up 150% so you decide to buy. Meanwhile everyone else is taking their profets and moving on to another stock. The stock dips and your stuck holding the bag. I've made this mistake a number of times. It's easy to get excited when a stock is going up and to think it will keep going up.
2) Decide what your going to do with your losers. Are you going to cut your losses or wait for the next run? I've made the mistake of holding on to lossers and then after a few days to a week when I'm down 50% or more to get scared and sell. Then I found out that the stock went up a few weeks later. I would have done much better if I cut my losses early or to forget about them until they came back up. Instead I waited until they hit bottom and sold. I think a lot of people on this board would say it's better to cut your losses early. I think it probably depends on the reason for the drop. Is it because of bad news like a reverse split or is it some profit taking?
Posts: 117 | From: Indiana | Registered: Sep 2005
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posted
J3, looks like you've learned your lessons well. I made the same mistakes starting out and still have to watch myself from chasing a stock in the heat of the moment. NEVER NEVER CHASE A STOCK! It will always come back down. Also never tie up all your money, KEEP CASH ON HAND for opportunistic times... And yes if you bought to high and see the PPS start reversing CUT YOUR LOSSES EARLY. One last thing to remember is to not get to greedy, if your are well into the green it is better to MAKE SOME KIND OF PROFIT than to kick yourself in the rear for not selling when you could have.
-------------------- Pennies...Get in, Get out, Get a profit! Posts: 352 | From: Killeen, Texas | Registered: Nov 2004
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the advantage of watching these stocks for years is I KNOW THE SCAM STOCKS
best of luck
-------------------- THE DEVIL HIDES IN THE DETAILS (DD) DO YOUR DD BOOOYAH :) Posts: 345 | From: central florida | Registered: Oct 2005
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"Learned" is a strong word. I still make the mistake of buying after the run. I'm starting to think that I shouldn't be playing runs. I rarely cetch them early enough. I think I want to learn how to swing trade pennys.
Posts: 117 | From: Indiana | Registered: Sep 2005
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posted
DON.... OBVIOUSLY DEALING IN PENNIES CAN BE VERY VOLITILE AND DANGEROUS... HOWEVER KEEP THIS IN MIND..... THE DIFFERENCE BETWEEN THOSE OF US WHO ARE UNBELIEVABLY SUCCESSFUL AND THOSE WHO ARE NOT... IS THE RISK FACTOR.... SUCCESSFUL MEN ARE GENERALLY THOSE WHO ARE WILLING TO HANG THEIR BALLS OUT THEIR TO GET KICKED... THE KEY IS TO CONTROL OR LIMIT THE AMOUNT OF TIME YOU GET KICKED..... IM FAIRLY NEW AT THIS AS WELL AND I HAVE LOST MONEY.... OFTEN BY BUYING TO LATE IN THE GAME... HERE IS THE SINGLE LARGEST HELP I HAVE RECIEVED TO DATE.... PAY THE $100 TO SUBSCRIBE TO THIS BI MONTHLY NEWSLETTER AND STICK WITH IT..... UNLESS YOU SEE ANYTHING REALLY GOOD OTHERWISE ON ONE OF THESE BOARDS.... WWW.PENNYINVESTOR.COM ITS WORKING GREAT FOR ME!!!!! DAN
Posts: 181 | From: Alberta, Canada | Registered: Oct 2005
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Dilution news is a good one to cut losses early. I still think there are some cases where it may be worth waiting it out. But dilution is pretty bad news and it may not ever recover. I've had cases where it was better to wait out the dip. For example, I bought CALI after the last run at .0005 it went down to .0002. I put a GTC sell order in for .0006 and sold it this week for a small profit. I also think it partaily depends on your trading stragity. If your a daytrader, then you always want to protect your capital. But to daytrade well, I think you need to have a lot of time to watch stocks on your computer.
Posts: 117 | From: Indiana | Registered: Sep 2005
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quote:Originally posted by J3: 1) Be careful not to buy after the run.....
2) Decide what your going to do with your losers...
Yep. That describes my mistakes with pennies exactly. Also, getting too greedy and not selling before the run ends, because I want the run to keep going up and up ("want" clouding my mind and making me forget to check the trends and candle sticks, etc.)
That and, as someone mentioned above, taking the wrong people on this board (and elsewhere) at their word -- buying into the hype and all that. There are a lot of extremely smart and talented people here, and I can't be enthusiastic enough about how helpful most people here are ... some amazing traders willing to share advice and tips and do top-notch DD on the threads ... but there are also a number of pumpers...
Most of them aren't malicious, though, IMHO, they just get a little overly enthusiastic about stocks that are on a momentary run pre-plunge. Heck, we've all gotten overly excited about the wrong stock before, so that's understandable. But you've gotta be careful not to get too caught up in the excitement of a thread jsut because a bunch of people are screaming about an oncoming run -- especially until you have a good idea about who here is actually level-headed and right more often than they're wrong.
With regular stocks (over $5) you can usually get in on a run or follow the trends/charts with greater ease, but with pennies it's much harder to predict and the trends/charts are more often wrong than with bigger stocks.
If you buy into GE, for instance, and the stock tanks, the down-trend usually takes place over a series of days, weeks, or even MONTHS, so you have plenty of time to get out if you want. And the same goes for a normal GE run -- the uptrend takes place over a decent chunk of time. And even if you end up holding something like GE or TWX well after it's tanked, you can still be farily confident that it will follow the charts -- that eventually it'll go back to it's 200-day or two-year moving average at the least, and if the company does well they'll run even higher. Of course, you might be waiting years, but the risk of big, unrecoverable losses is low. (There are plenty exceptions with both big stocks and pennies, of course.)
With pennies, however, although you'll likely follow the trends and averages, you can also bottom out in a few hours on one bad day. And the runs come and go just as quickly, so you have to be always alert so you can hop on and off in time. And you have to get ready to expereince HUGE losses.
But so long as your wins are steady and/or big, they'll make up for all the losses and then some. By following this board and doing your research, you'll make money -- In theory, at least. I had a great year but a few bad months brought me back to break-even. I'm now crawling back to profit, but it's amazing what just a few bad trades can do to ya in the penny market...
And I've tied up a lot of my money in badly-timed trades that I'm failry confident will go back up in value and make me $$ eventually, but it keeps me from day-trading since all my funds are invested.
I defintely agree with everyone here that it's a million times better to day trade and swing trade pennies and not "invest" by holding for more than a few days. But I'm also loath to cash out stocks that have gone down by 40%+ when I think they should be turning around before the end of the year. Plus, it takes a lot more work to trade daily than it does to just invest and then leave the investment alone for a while. But you only get what you work for, eh?
So I'm still learning as well....
Posts: 249 | From: NYC | Registered: Sep 2005
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blazingnines - easy on 'hanging balls getting kicked' references; that's not exactly how I pictured my investment strategy!
-------------------- I have taken a vow of poverty, so if you want to irritate me, send money. Posts: 1032 | From: DFW | Registered: Oct 2005
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posted
Yeah - that comment brought back painful memories of when I worked security for a major retail chain. Gal kicked me, and I wound up in surgery. Woke up 3 days later in the hospital...She got hers though, when I went to court, I had charges pressed against me for excessive force. To this day, I don't remember hitting her, but she swallowed 4 teeth.... Judge dismissed the charges against me though...
-------------------- I'm not going to comment further, as I refuse to get into a battle of wits with an unarmed person.... Posts: 546 | From: Columbus | Registered: Aug 2005
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