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Please tell me the truth on this poll ? I like to check it out how many percent !
Please answer ? Thank you for your help !
I don't make any money on this penny stock ! I lost more than $ 5000 in two months ( included $ 1,345 which I paid for broker fee )
I just want to make few bucks . Please show me how if you make money on this gamble.
Posts: 209 | From: Santa Ana, California | Registered: Nov 2005
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Some thing i have learned through the years of investing in penny stock (and any stocks in general) is that you have to learn your spot in the stock market. I am a penny stock trader, some ppl r microcap, $1, $5+ traders. The person that tought me everything in trading told me that you have to find your place in the stock market, something that fits your personality. Everyone has lost money in the stock market before at one time or another but obviously u want to have more ups than downs. So maybe penny stocks might not b the thing for u but u shouldnt let that discourage u. Try experimenting on other things, different stock, different price ranges. Just remember, patience and wisdom is the key to sucessful stock trading.
-------------------- Greed has turned me to the Dark Side... Posts: 157 | From: OC | Registered: May 2005
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YA i made $$ but do I Know when to sell it. NOOOO . I hold on thinking the run will keep on going. Then they usually drop back down again , so then you can say I did't make any $$. Just need to know when to sell. Thats my problem. sometimes greed takes over and then bam, the price drops......
-------------------- "We're just all victims of soicumstance." The 3 Stooges Posts: 346 | From: Indiana | Registered: Nov 2004
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I usually break even. But over all No. Its just fun to play around with, I could have made money on MLON, bought at .0001 it went to .005 but I did't sell because of greed. So I lost it all. Its the excitment, the wait of a run that keeps it interesting...
-------------------- "We're just all victims of soicumstance." The 3 Stooges Posts: 346 | From: Indiana | Registered: Nov 2004
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I have a plus on WEGI, qbid, gzfx, RNVO, and currently hold PBLS as a result of the profits. Am I ahead? Not yet. Will I be ahead? Well, I won,t be behind. Only time will tell. Also long in SUWN.
Posts: 45 | From: Cincinnati | Registered: Sep 2005
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This is going to be very long but the best read you'll find on this board!
These are Post's on how to make money in this market by three of the greatest people I have had the pleasure of trading with!
Learn ALL(LOL) of their tips and you'll do fine. And.........Yes, I do make money. My biggest tip?... DON'T HOLD ANY OF THESE PENNYS! Make money and sell....If it goes up more, Good for the other guy holding it, You've made money. MOVE ON!
First great info from Ric...(((HUGS)))
I updated my dd for all so here it is. I am writing a more detailed things you need to know section and will post when I finish.
Things you need to know
Best two pieces of advice for pennies. 1) Don't let people convince you that a penny is a long hold. You will get burnt. Buy low, sell high, and never look back. 2) Due Diligence.
Two things that you must learn about charts immediately is RSI and Bollinger Bands. They are so important. Now there is so much you can learn in charts that will help you make choices but I consider the above the most important things to learn for any investors. RSI will let you know if there is buying pressure or selling pressure. It will also confirm a run. Bollinger Bands also show price pressures and are used to support other indicators. There are links below under TA for education on understanding charts.
Relative Strength Index
Definition:
Relative Strength Index (RSI), an oscillator introduced by J. Welles Wilder, Jr., could be more appropriately called the internal strength index, for it compares the price of a security relative to itself. The RSI is based upon the difference between the average of the closing price on up days vs. the average closing price on the down days over a given period, and is plotted on a vertical scale of 0 to 100. An oscillator refers to a momentum or rate-of-change indicator that is usually valued from -1 to +1 or 0% to %100.
Wilder advocated a 14-day RSI, although shorter and longer periods have gained popularity when the market exhibits certain characteristics. Generally, RSI is measured in a period between 5 and 25.
Interpretation:
There are several possible interpretations for the Relative Strength Index, any of which can be very powerful depending on the market conditions and trading/investment approach: One interpretation is that buy signals are triggered when RSI is in oversold (20-30) area, potentially meaning that the stock is about to reach its low for this trend, and sell signals are triggered when RSI is in overbought (70-80) area, potentially signaling a market top.
A second mode of interpretation is to look for support and resistance lines or common chart formations such as head and shoulders in the RSI itself, indicating potential reversals that the stock chart may not.
A third mode of interpretation is to recognize divergences in the RSI, such as when the price is moving up when the RSI is moving down or vice versa. This can mean that the price is going to "correct" and move in the direction of the RSI.
A fourth mode of interpretation for the RSI is to view it as a bullish or bearish signal when it crosses 50. When the RSI crosses above 50 it can be considered bullish, and when it crosses below 50 it can be considered bearish.
Bollinger Bands
Definition:
Investors use trading bands, lines drawn above and below the moving average, to isolate a range of prices for a given security, based on the concept that a stock generally trades within a predictable range on either side of the moving average. When a stock is near the upper or lower limits of the trading bands is when an investor should pay closest attention, according to conventional wisdom.
Bollinger Bands are considered some of the most useful bands in technical analysis, for they vary in distance from the moving average of a security's price based on the security's volatility. During periods of increased fluctuation, the bands widen to take this into account, and when the fluctuation decreases, the bands are tapered for a narrower focus to the price range. The upper band is the standard deviation multiplied by a given factor above the simple moving average, and the lower band is the standard deviation multiplied by the same given factor below the simple moving average.
Interpretation:
The standard interpretation is that Bollinger Bands do not give absolute buy and sell signals, but instead indicate whether the price is relatively high or low, allowing for more informed confirmation with other technical indicators.
Bollinger Bands are typically drawn two standard deviations from a twenty day simple moving average for intermediate-term analysis, ten day for short term with 1.5 standard deviations, and fifty for long-term studies with 2.5 standard deviations. According to John Bollinger, for the most accurate average "choose one that provides support to the correction of the first move up off a bottom. If the average is penetrated by the correction, then the average is too short. If, in turn, the correction falls short of the average, then the average is too long. An average that is correctly chosen will provide support far more often than it is broken."
Mr. Bollinger also contends that:
Sharp moves tend to occur after the bands tighten to the average, when a stock is less volatile. The greater the period of less volatility, the higher the propensity for a price breakout.
When the price hits the upper or lower bands, it is suggested to confirm with other indicators whether that price movement shows strength or weakness, respectively, which could indicate a continuation. If indicators do not confirm this movement, it can suggest a reversal.
Tops or bottoms made outside the bands, followed by the same inside the bands, indicate a trend reversal.
A move originating at one band tends to go to the other band.
"Resource from IQCharts"
DD for otcbb and pinksheets
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.
www2.barchart.com - after you enter stock symbol select opinion to see trend spotter
www.otcbbtrader.com otcbb loser/winner by volume, price, shares, transaction, and more
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.
Pennies are all about volatility and trends. The only reason to look at a 6 month chart or longer is to see the overall trend of the stock. Is it going up, down, or staying the same with little bumps in the road. Look for peaks and valleys and do they happen on a regular basis. If so then look for a bottom and buy then sell at the top and wait for the next valley.
Never let people tell you after a run that it will run again. That rarely happens. Usually after a run it slowly drops back down. Never average down. Sell and buy back at bottom. Holding until bottom never makes you money, it only makes your loses harder to bare.
Longs in a penny stock want you in so they give you the pretty picture. They hope they can get enough new investors to make their stock move and it won't until the stock is ready. Learn to follow trends and how to find the bottom plays. Usually if a stock has more then a couple pages then the stocks has already done something and hope is what keeps the thread going of it moving again.
Be smart, think, learn, and research.
Next our wonderful and lovely Queen of daytrading...Diana! I miss you girl!!!!!and Hello Sunny, If you are still reading!
Realityinc21.
IT'S CONTROLED BY THE PSYCHOLOGICAL TRAPPINGS OF THE MARKET.
Stage 1 - Accumulation. Stock is quiet, trading sideways and without a lot of volatility. Most everyone ignores the stock because it has no sizzle. Insiders hold large blocks of stock and quietly gear up for the distribution. Stage 2 - Breakout. Volume jumps up, psychological barriers are broken. Insiders begin to tell their friends of upcoming significant fundamental change. Pros take notice and buy the stock on the coat tails of the well informed. The public ignores it because they have not read about the company in the paper yet. It must be a scam. Stage 3 - Uptrend. As a larger audience learns of the company and its promise, more buying comes in to the stock and it begins to climb. Pros begin to sell, but slowly. Average investor begins to buy. Stage 4 - Pullback. The stock has gone up too fast, and some profit taking arrives. The jumpy investor who got the entry timing right but lacks confidence in his or her decision sells the stock with a small profit, and smiles in the mirror. The Pro holds on, Average Investor looks through the newspaper to find justification for ownership of the shares. Stage 5 - Resumption of the Uptrend. The pull back is short lived, and the stock bounces and continues higher. The wannabe regrets the sell, but provides self counsel on the merit of making a profit, albeit a small one. The Pro might sell a little bit more, but still holds the majority of the original position. The Average Investor is getting excited now, and thinks about what could have been if only he had bought when he first noticed the stock. Stage 6 - Exhaustion of the Uptrend. The media takes notice, and communicates the company's merits to the masses. The masses buy the stock, and it goes up sharply with strong volume. The Pros sell with enthusiasm. The Average Investor owns it now, and is telling everyone who will listen. The wannabe Pro jumps back on, after all, he was smart enough to buy it when the trend started, so he knows the stock well. Will hope make it go higher? Stage 7 - Gravity Works. Pro selling begins to weigh on the uptrend, and the stock fails to go higher despite high volumes. The stock starts to go down instead of up, and the Pro is almost sold out. The Average Investor continues to cheer lead, hoping to rally support. The wannabe ignores what the market is telling him, taking a loss is too painful to consider. The company is featured on the cover of a magazine. Stage 8 - The Second Guess. The stock bounces and starts to go back up. The wannabe Pro averages down while the Average Investor gets back to advising friends of his stock picking acumen. Pros sell their remaining holdings and begin to look for another deal to play, or perhaps start short selling the stock. Stage 9 - Out of Gas. The bounce is a fake out, and the stock moves lower again. The public own this stock, and they have no more power to buy. The Pro are making money on the short sales now, but are despised by the masses. Calls for short selling to be made illegal are made by the Average Investor, after all, the short sellers are the demons causing the sell off. Stage 10 - Dead Cat Bounce. The Average Investor and the wannabe Pro have no pain tolerance left, and finally sell for a big loss. The short selling Pros are the only buyers to take the share off their hands, and provide the needed liquidity. The stock bounces, and some short term traders make a quick profit. The Average Investor either swears to never buy a stock again, or tells lively stories over drinks about the one that could have been. Stage 11 - Post Mortem. Pros have forgot about the stock and are considering carpet samples for their new home in Florida. Average Investor continues to follow the company and buys loads of cheap stock to try and overcome the regrettable loss.
The stock market is mean. You can be a good analyst, but if you can't overcome the psychological traps of trading, you will do what the crowd does. To be successful, you have be one step ahead of the crowd, and trade with unemotional discipline. There are strategies to take advantage of each stage of the market cycle that can be applied just by looking at a stock chart. They just require a bit of knowledge.
EVERYDAY FOR THE 30 DAYS READ THIS 10 TIMES A DAY. ASK YOURSELF 10 TIMES A DAY "WHAT KIND OF TRADER AM I GOING TO BE??" AM I GOING TO BE A CRYING WHINNING LITTLE BITCH OR AM I GOING TO SHAKE IT OFF?? AM I GOING TO BUY TO HIGH BECAUSE I DO NOT KNOW HOW TO READ A CHART OR AM I GOING TO F-ING LEARN HOW TO READ A CHART?? AM I GOING TO BE THE ENTERTAINMENT FOR THIS BOARD OR AM I GOING TO GO THE LIBRARY AND CHECK OUT ALL THE BOOKS THAT I CAN READ ON DAY TRADING AND INVESTING AND STOCK CHARTING. AM I GOING TO LEARN HOW TO DO MY OWN DUE DILLIGENCE OR AM I GOING TO BUY ON THE RECOMENDATION OF PEOPLE FROM THIS BOARD??(IT IS PRETTY OBVIOUS THAT IS WHAT HAPPENED )THEY WERE GREAT RECOMENDATIONS BUT YOU WERE ABOUT 5 STEPS BEHIND. IT LOOKS LIKE BY THE TIME YOU WERE BUYING EVERYONE ELSE WAS SELLING. AM I GOING TO TAKE THIS LAYING DOWN OR AM I GOING TO GET MY G--D D--M MONEY BACK. NO ONE HERE CAN MAKE THOSE CHOICES FOR YOU!! MAY SEEM LIKE I AM BEING A COLD HEARTED BITCH BUT THIS THE REAL WORLD BABY. THE QUESTION YOU HAVE TO ADDRESS RIGHT THIS MINUTE IS..AM I GOING LEARN ON THE FLY OR AM I GOING TO BACK IT UP AND LEARN ABOUT WHAT THE F--K I AM DOING?? YOU DOVE IN HEAD FIRST NOW YOU HAVE TO LEARN HOW TO SWIM. IF YOU ARE NOT WILLING TO LEARN HOW TO SWIM--BAIL AND TAKE YOUR LOSS. DAY TRADING IS TIME CONSUMING. I WOULD VENTURE TO SAY THAT MOST OF THE PEOPLE ON THIS BOARD SPEND 5 TO 10 HOURS A DAY RESEARCHING-CHARTING-READING SEC FILINGS-GOING OVER FINANCIALS--READING NEWS RELEASES--COMMUNICATING WITH OTHER TRADERS ON STRATAGIES--THEN FINALLY BUYING--THEN THE SAME PROCESS BEGINS FOR THE EXIT. IT MAY NOT SEEM LIKE IT RIGHT NOW BUT I AM TRYING TO HELP YOU. AS WILL OTHERS ON THE BOARD. SUGAR COATING THE FACTS WILL NOT HELP YOU. YOU NEED A GOOD DOSE OF REALITY AND I JUST GAVE IT TO YOU!! IE REALITY INCORPORATED.... THE ONLY CONSOLATION THAT I CAN GIVE YOU IS: I HAVE BEEN IN YOUR SHOES. AFTER OVER 20 YEARS OF DEALING WITH THE MARKET I STILL WAS NOT PREPARED FOR THE DEPTH OF DAY TRADING. I LEARN NEW THINGS EVERYDAY AND MAKE MISTAKES EVERYDAY. AFTER 4 YEARS OF MAKING AT LEAST 5 TRADES A DAY I AM A NEWBIE JUST LIKE YOU. IT IS A PROCESS. WELCOME TO DAY TRADING AND GOOD LUCK WITH YOUR CHOICES.
REALITY INCORPORATED
ESTABLISH A SET OF TRADING RULES THAT WORK FOR YOU. THESE ARE MY RULES. YOU HAVE A ADAPT 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. 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. BOUGHT AGAIN TODAY AT .0032. 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 RECENT 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). I DO LISTEN AND LEARN AND BENIFIT 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 THEY MAKE OR PRODUCE OR SELL 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 $5.00. 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 TO MINIMIZE TAXES. INCORPORATE, PROTECT AND SHELTER. 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 AT 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 WILL SELL HALF AND RECOUP INVESTMENT AND KEEP 5000 SHARES FOR FREE. HOPEFULLY THAT WILL BE THIS WEEK. 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 AND DUE YOUR OWN D.D.. LEARN THE RYTHEM OF THE CHARTS. IT IS CALLED "HARD WORK". 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.
And From dardadog! The master of getting it done FAST! WOOF dog!
There seems to be a large amount of "newer" inexperienced traders here on Allstocks these days. Glad to see so many new, and what appears to be, younger traders out there. I wish I had been smart enough in my late teens and early twenties to invest in my future. I don't consider myself "old" at 43, but when I was that age I considered my future to be next week rather than next decade. On to the point here. Many of the investors here follow my "flyin fast" leads and do in deed make good quick returns on their investments. But I want to bring attention to a very important rule that I'm afraid many may be overlooking. Particularly in the case of "QBID". The rule I am refering to is "Cover Thy Ass". It's fun (and profitable) to latch onto a microcap that takes off like a rocket. But gains on "paper" don't impress the finance officer, and they don't pay off or save for college tuitions. Microcaps are just that for a reason. Something in the companies past has dictated that they are worthless. When they stir, everyone aware becomes excited and begins accumulating shares with the "Beverly Hillbilly's" theme song stuck in their head. Dreamin' and making extravagant shopping lists, walking around with a stupid grin on their face, thinkin' EZ street is the next block up from here. "Danger Will Robinson - Danger"!!!!! Guys.....if it were really this easy, nobody on the planet would work!!! I make this point, and hope many take to heart, because paper gains are just that..."paper". You see how fast the portfolio can increase on one of these wild rides, but believe me, it can shrink faster. The smart investor always, and I mean ALWAYS, keeps this first and foremost in mind. Front And Center. While these microcaps are great to play, a smart investor will always "Play Free". Pick a price at which the stock reaches where you can sell partial holdings and keep a block of shares for free. You then have your initial capital back to re-invest in "new" up and comers, and if the free gem you are riding tanks, you can still get some use out of the shares you own for free. .0001 Certs can be used in place of Charmin next time you are at the grocery store. Chafes a bit, but not as much as it does if your ass is raw from the ol' back door screwin' you just took by having your whole wallet tied up on the dream. I want all to really think about this. More people in the penny game have had this experience become a realization, than have had the "Beverly Hillbilly's" dream come true, I assure you. Just remember, although this seems like a game, the only real game in life belongs to Milton Bradley. Good Luck out there. ------------------ DaDog
-------------------- Lil,
Dont LOSE more than you can afford to invest....LOL
I'm buying low and selling into the run... Posts: 8024 | From: Joisey....see attitude above | Registered: Jan 2004
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Broker fee : $7 per trade Plus .05% of principal. If you trade $600 , the broker fee would be $7 plus .5% of $600, total is $9.
Posts: 209 | From: Santa Ana, California | Registered: Nov 2005
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Sorry ! Total is $10 for $600 trade.(buy or sell) I used Scottrade as broker.
Posts: 209 | From: Santa Ana, California | Registered: Nov 2005
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There is two ways to lose money in the penny market that a lot refuse to listen to.
1) Never hold a penny stock after a run. Sell it and if it does run again you can still buy it back but 90% of the time it will fall back to where it was and sometimes lower. Penny's are manipulated on too many levels and holding long will only lose you money and give you a ulcer. Take profits and walk away. If anyone tells you to hold a penny long they are holding that stock at a lose.
2) Don't play group plays and if you can't help yourself take profit as quickly as possible. When the group leaves the stock will drop faster then you can leave.
Worry about a stock that people refuse to hear negative comment on. They are hiding valuable information from you. You can't make a honest choice without all the facts. And all penny's have bad news or they wouldn't be here. If a stock is being pumped to hard then there is a reason for that. Its losing them money.
There is some excitement in runs too that may conflict with what I just said but it's still risky. Because of the manipulation in this market either through groups, boards, MM's or the company a uptrend can turn on you quickly. Find your risk level and move on when it is met. Never look back on profit and wonder if I stayed longer that I could have made more because the next one will burn you if you don't obey your own rules. If you really think it can move further, sell enough to get your money back and ride the rest. A whole lot less risk.
-------------------- Invest with your brain not with your heart. Posts: 4405 | From: Bristol, Tn, USA | Registered: Aug 2004
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quote:Originally posted by Ric: There is two ways to lose money in the penny market that a lot refuse to listen to.
1) Never hold a penny stock after a run. Sell it and if it does run again you can still buy it back but 90% of the time it will fall back to where it was and sometimes lower. Penny's are manipulated on too many levels and holding long will only lose you money and give you a ulcer. Take profits and walk away. If anyone tells you to hold a penny long they are holding that stock at a lose.
2) Don't play group plays and if you can't help yourself take profit as quickly as possible. When the group leaves the stock will drop faster then you can leave.
Worry about a stock that people refuse to hear negative comment on. They are hiding valuable information from you. You can't make a honest choice without all the facts. And all penny's have bad news or they wouldn't be here. If a stock is being pumped to hard then there is a reason for that. Its losing them money.
There is some excitement in runs too that may conflict with what I just said but it's still risky. Because of the manipulation in this market either through groups, boards, MM's or the company a uptrend can turn on you quickly. Find your risk level and move on when it is met. Never look back on profit and wonder if I stayed longer that I could have made more because the next one will burn you if you don't obey your own rules. If you really think it can move further, sell enough to get your money back and ride the rest. A whole lot less risk.
posted
Lil ... can u explain this for me pls ..or if anybody can i'd be very grateful ....
is this in level II or where?
"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. "
Posts: 204 | Registered: Apr 2005
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I've only been playing the penny stocks for about six months, during which time I've made and lost a ton of money (relatively speaking, since I don't have a literally ton of money to play with).
Before I was only playing bigger stocks -- usually $15-$40 a share plus, and a few $3-$15 per share stocks. But I was lured into playing some pennies that fell on my radar (while I was researching bigger stocks), and they all turned out great at least 30%-50% gains within a few quick hours, days, or weeks, as opposed to the 5%-20% I was waiting for many weeks or months to make with the bigger stocks.
And those first pennies all ran much higher, sometimes reaching 500% of where Id bought in. I suppose I actually sold them much too early because I was sticking to my own rule of not getting greedy. So after that initial good taste of pennies, I ended up putting all of my money into pennies. Heck, since I only have a very limited amount of money to invest, it was a lot more fun and potentially profitable to spend $1,000 on a million shares of a sub-penny stock instead of spending $1,000 on 30 shares of a big stock. But instead of using my careful, time-consuming methods of finding stocks to play -- which worked well with big stocks, were a lot of financial information is always available, but isn't so great for pennies, where a lot of info isn't available as regularly -- I ended up basing almost all of my purchases on info I found from discussion boards like AllStocks and some tip-sheet websites, because, after a few Google searches, I'd found that all the pennies I'd made money on had discussion threads on AllStocks dating back from way before I'd played the stocks, meaning that some people here really know what theyre talking about. Within a few months, though, I'd lost thousands. Every dollar I'd made over the past year of making continual gains in the big stocks was wiped out by these pennies, and then some.
Most of the losses were because of the following:
(1) I got greedy and didn't sell at a reasonable price, instead always hoping to make 50%, 100%, or more when, if I'd really thought about it logically, I should have set my sell price much lower. As others have pointed out here, you should figure out the best, most conservative sell price at the time you buy, and don't go back on that because of greed or excitement. You might adjust your price upwards if it looks like the run up is sure to go high, but never set it at what you think will be the peak price, because very few sales actually go through at the day's high. And make sure you get out before the run is over, because with a penny the stock will likely dip again dramatically within a few hours or days and very likely won't go back up again for months, if at all. With pennies, buying and selling fast is almost always the key.
(2) I bought in too late, while the stock was at a high, because there was a lot of excitement on the discussion boards about how the stock was going to keep going up and up and up -- when, really, if I'd looked at the stock's historical charts and the company's financial state, it would have been clear that the run wouldn't last much longer and a dip was imminent. I can't tell you how many times I fell for this -- buying high, seeing a minor bump up, and then watching the stock crash or slowly slide down down down. The stock might go up again later, but it'd never go much higher than the high price I bought at, meaning my money was tied up (and in some cases is still tied up) while I waited to make my money back. With a big stock -- like GE, for instance -- you might experience losses, but rarely will you see a 50% loss happen in a day, and if you wait a year you'll almost always make your money back, even if there's no profit. But with a penny it's common to see a rapid 50%+ loss, and holding for a year might just lead to more loss if the company is crap. Some people say that you should play pennies based on the excitement and manipulation, jumping in on the run and not worrying about financials, and it's true that great money can be made that way -- but it undoubtedly raises the risk factor, because finding a financially stable penny means finding possible gold, even if a run isn't going to happen immediately, but playing without any regard to financials means that if you miss the run despite your best attempt to sell, you'll be stuck holding a piece of garbage. Don't get stuck holding that bag of garbage -- and, really, to be safe, don't buy the garbage stocks in the first place, even if you think (or have been told) that a run is a "sure thing," because, once again, that's just greed, not smarts and research, telling you to try and make a quick buck, and greed always gets you in the end. What I'm trying to say is, do your due diligence. Do the research. Check the charts and candlesticks. There may not be much time to do a lot of this since pennies rise and fall so quickly and the charts and candles aren't as accurate with these low numbers and volatile stocks, but do the best you can, or else the odds of getting screwed are much higher.
(3) I gave up too soon. After waiting weeks or months for a stocks to go back up, I've found myself selling at significant losses, again something I wouldn't ordinarily do with the big stocks, where I would have done enough research on the company to feel confident that it'd go back up eventually. Sometimes this is absolutely necessary -- don't let pride get in the way of selling at a loss when you've realized that a stock is going nowhere, because you'll just lose more money or tie your money up when you should be investing it elsewhere -- but a few times, in retrospect, I've realized that it was just panic or frustration, and the stock shoots right back up a couple of days or weeks after I've sold. So, let me emphasize, don't let emotions come into play when you're trading, be it pride, greed, excitement, or panic.
(4) Only paying attention to the people on the discussion boards and the writers of the newsletters and stock-tip websites that love, love, LOVE the stock and not paying attention to the "bashers" and realists that hate the stock or offer caution. At least, not paying attention until it's too late. You need to listen to everybody and weigh their opinions and info, and then make your decision. And try and learn which people on this board tend to make the best calls -- just because someone made a good call one week doesn't mean they're a genius. And just because someone else picked a big loser another week doesn't make him or her and idiot. It takes time, but you need to slowly figure out which people most CONSISTENTLY make the good calls, even if they're not always right. And which people will honestly tell you when to sell? That's important too, because you'll see that a lot of people will just keep telling you to hold, while the more profitable traders are probably quietly exiting, taking their money and investing elsewhere after the run.
(5) Over and under investing. Quite a few times Ive bought only a little of multiple stocks that looked good, then found it hard to make any profit off them because just to cover the commissions for each stock I have to wait for big percentage gains. Other times Ive bought a lot of what I think is a great company, only to see the stock fall, but then not have any more money left over to buy more of the stock at the new low, even though I know the stock will at least go back up to my purchase price. So lets say you only have $1,000 to play with. If you put all of that money into a single stock, then youre risking too much on one horse, because its all of your money and if the stock tanks, youve just shot your horse. But if you decide to be careful and diversify across 10 stocks, then youve only got $100 in every stock, which means youll have to make about a 20% gain on every one of them just to cover your buy and sell fees. So, based on the amount of money you have available and the risk involved for any given stock, you need to carefully decide how much you should spend. Investing $500 into one great-looking stock (your primary investment) and $300 into one good-looking penny stock (your back-up investment) might be better for you than investing in $100 in ten different companies where eight of those companies look like theyll probably run but theyre not the greatest. If the great companys stock then dips instead of rising, you might decide to hold on while it keeps going lower. When youre sure its reached its lowest point, if you still feel good about the company, then you might spend your last $200 buying more of the stock at this new low, which will lower your average PPS and give you even greater gains if the stock does go back up as youre expecting. On the other hand, you dont want to chase a stock while it falls, so if your fairly certain that a stock you own is going to keep going lower before it goes higher, youve gotta bite the bullet and sell it (even if it means selling at a big loss), then buy lots of the stock back when it hits its valley. (Again, however, when youre working with small amounts of money like this, you have to keep your buy and sell fees in mind, because those commissions are a big percentage of your funds, and selling and buying too much while you chase a stock around the charts can eat away all your cash.)
Staying true to the rules you set out for yourself can be surprisingly hard, but when Ive followed the above and minimized my risk, Ive almost always made money, but when I deviate from the plan I almost always lose. Over the past six weeks, still betting on pennies despite my better judgment, but being far more careful about it now, Ive managed to recoup some of my losses, and Ive gone from being deep in the red to being back to just above a breakeven point. From the looks of things, and with a little luck, and if I keep investing carefully, I stand a good chance of ending the year in the green, probably up 10% or even 30% from where I started at the beginning of the year. It wont be as high as where I was at my peak this year, and its still risky, and its certainly not the millions Id envisioned after my first few successful penny plays, but green is green. And green is good.
That, actually, is probably the most important thing to remember when investing in any stock, big or small: profit is profit. If you can clear 5% on a stock, if you can make just $10 after the fees, well, thats money, and thats what were after. Going for huge gains is where many traders trip up. Instead, think about trying to make 5% every week instead, and selling your stocks as soon as you can get that 5%, and then starting again, and again. The cumulative effect will be much greater overall, compared to playing for higher stakes where you might find one stock that garners a 1,000% increase but you end up with a dozen other stocks that peak and then crash and take away all your money.
(Note: many the people you see posting on this thread are probably some of the most trustworthy and helpful people around on the AllStocks micro-penny boards. Posters like lilpennypincher, Ric, Dustoff101, BuyTex, etc. will not steer you wrong, although they may not make many picks. Look for their posts, because they're always full of good advice, IMO. I also like a lot of QuestSolver's picks and there are some other great people here, but remember that not every pick is going to be a winner, so be careful even when following the greats, and be extremely careful when following picks from people that you haven't already been following, regardless of the message board or website.)
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I know that I list the MM signals in my fact pages that Lil posted above but many think the codes are obsolete now with instant messager and cell phones MM's probably have alternative ways to signal each other now. But some think it still is a active code especially is fast moving stocks.
Yes it is in Level II's
-------------------- Invest with your brain not with your heart. Posts: 4405 | From: Bristol, Tn, USA | Registered: Aug 2004
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Ric, good idea. Thanks. I just saved it. I've saved a few of YOUR posts to my hard drive and my blog, too, over the past couple of months, for easy access when I need to remind myself what I'm doing. You're always on point. Posts: 249 | From: NYC | Registered: Sep 2005
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No - I have lost almost all because i am too greedy thinking when these run a little higher that maybe it will continue to run (I think i am chasing the taser dream that won't happen.Well i still have a few stocks left until another R/S hits me again.I think i might have the record for Reverse splits.Oh well I will still chase my dream and hopefully just hopefully one of my few stocks left will actually rise and stay up so i can make some money but if not "Does anyone have any spare change".GLTA
Posts: 1086 | Registered: Oct 2005
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Fantastic answers from you guys. I've printed out the rules from the 'old-timers', and HOPE to get them memorized! :-) thanks!
-------------------- "As long as there are dreamers, there are dreams that will come true." Posts: 862 | From: CT Yankee..... in FLA | Registered: Aug 2005
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I just want to make few bucks . Please show me how if you make money on this gamble. [/QB]
I've been trading pennies for about 6 years, I've made a ton of money. I no longer have to work, Unless I want to. The way I did it is jumping in on runs taking my average of 20% and getting out. Then a couple of times a year you'll find that diamond in the dung pile. The one that will make you rich. I got in HISC at an average of .003 bought 2.5M shares. sold 1.5M on the ride up to 14 cents. still holding 1M "free" shares. But the number 1 rule is to get your capitol OUT! after you reclaim your investment then you can play with the rest. Everybody get caught with their pants down at some point. IGTN is a great example of that. But if your not risking your capitol it dosen't really matter what happens to the stock. I average about 125K yearly before taxes. And many other people here are doing the same thing. Good Luck to Ya!
-------------------- "There is only one good, knowledge, and one evil, ignorance" (Socrates, 470-399 BC) Posts: 406 | From: Michigan | Registered: Jul 2005
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The following is a quote from a thread I started that you may find usefull!
I posted that I had a 900% gain this month and was asked "How did you do that. I'm playing the same stocks you are" Well let me start by saying It wasn't easy!
I'm not going to list all the stocks. Many of them I posted threads on and some I played were posts from others, but I will say that out of 20 or so stocks that I played there were only 2 that I got out of with a small lose! All of the rest returned some sort of gain!
Now let me add that 900% is an exceptional month, but not undueable over again!
Heres the principal I used and I hope it helps some!
I took a beat up account I had with $740.00 left in it, and its now over $6600.00 this month!
I read every news release that came out in the AM and afterhours. Here http://www.stockhouse.com/news/ and I read every new post to Allstocks and a few other boards. I had decided that all I wanted was a gain of some kind on every stock I played. Be it 5% or 100% but that I was certainly not going to risk losing gains of any kind!
When it comes to News some things run a stock and others don't, I have learned this over time. Getting in early is the best way to take profits from a run. I sell while its running not at the top. Even though some stocks keep going once they peek for the day, many more retrace and settle, making it harder to take a good gain out.
I stick to acquisition, spin offs, very large contracts, buybacks, and news of a large caliber.
I can scan a stock in less than 5 minutes to see if the chart is down and how badly, what the O/S A/S is if its available, what past news is out, and how much volume does it trade to make it move!
because of the low amount I was starting with I decided that all in was the best means of bring up the value.
the numbers!
$740. x 10% is a $74. gain less $22. in/out commitions or $52.
add $52. to the next play!
$792.00 + 10% is a $79. gain -$22 for brocker. Add $57. to the next play.
$871 x 10% is $65. added after brocker!
These are only examples and as we all know 10% could be 30% or even 100% in a day on the right news, and at least three of my plays this month returned 100% or better, but the point is to take some kind of gain at the end of the day, be it 2% or 100% and find another breaking news story to invest in!
There is no long in penny world and if there is, what is the benefit? Holding for a month or 2 for what a 100%-1000% gain and hoping? There are stocks running every single day while you wait for gains and sometimes even just to get your original investment back. Is it worth it?
Lets say your gonna hold $500. in xyz company for 2 months! Verses playing the momentum of news worthy of a run!
$500. X 500% after 2 months is $2500. if it runs after your long hold!
$500 + 10% every trading day for 2 months compounded! Thats about 45 trading days
Day 1 $500 Day 10 you have $895 after $22. brocker fees on every round trip in/out! just under 80% gain! Day 20 you have $1874. after brocker fees or a 375% gain! I'll let you do the math beyond here!
This is all based on 10% a day compounded daily and after brocker fees of $22. per round trip! As you can see it adds up pretty dam fast! Add in one or 2 30% or higher gains and see just how fast it adds up! Even throw in a 10-20% lose a couple of times a month. It still comes out green!
My point is that only making 10% on every play every day, adds up faster than any 500% gain after a 2 month hold! With only minimal risk due to the fact that I'm not staying in beyond the momentum, and playing only the best news stocks every day.
This is not a guaranteed win/win situation, but its working for me. I have herd it over and over again how high risk should bring high reward. I say "At what cost and how many have lost"
Lets face it the penny market is a day traders market, and when we realize this it is easier to take profits and play the game.
I like trading alot more than sitting and watching!
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Starting to make money now because I am not being too greedy. The first 6 months of trading I lost because I thought runs were the sign of a good company...wrong. Generally what goes up fast comes down twice as fast. My biggest mistake was falling in love with 2 stocks. I am still holding those hoping for some kind of bounce. Have an exit point on the + and - side of things. Good luck.
Posts: 68 | Registered: Nov 2005
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A bit THANK YOU to all who posted what I've saved and labeled Trading Rules. Also being new to trading these words of wisdom are priceless! THANK YOU 5 stars to lil, ric, and lucas.
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I'll tell you everything you need to know about pennies.....
I took $2,000 and ran it up to $125,000 in 2000. By the end of 2001 I had $4,000 left. My best day was that I made $25,000 on PRAV. My worst stretch was going from $125,000 to $60,000 in three days. Never knew what hit me. Moral of the story, yes, huge money CAN me made, and huge money CAN be lost. Like they saw, Bulls and Bears win, but Pigs get slaughtered. Take the game as a marathon and not a race and cut the dogs and let the winners ride.
-------------------- I may be wrong, but I don't think so.... Posts: 837 | From: Madison, WI | Registered: Sep 2005
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Rickpic, how did you daytrade with a $740 cash account? Takes 3 days to settle, so how did you do it?
Posts: 725 | From: litte rock AR | Registered: Oct 2005
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I started out losing money on my trades, then my first good trade netted me $34 something after $10 in buy/sell fees.
Then after some further research I looked at the charts for my former losing stocks, and it was all too obvious why I lost money!!
My mistake? Lack of education before going in. Some sites will give you free TA and fundamentals to help encourage your own decision making, and really its your choice as to you looking at fundamentals more or less than TA, but I think TA is the predominant ruler of pennyland coupled with enough fundamentals to make it at least common sense and not idiocy because of pump and dumpers.
Go to www.barchart.com and enter your symbol, from there click OPINION and you can get an idea of it being a buy/sell/bubonic plague opportunity.
Buy yourself two books that get good reviews on short term trading.
Posts: 718 | From: Bay Area, CA | Registered: Aug 2005
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priceless!
