posted
Hello members of Allstocks, I am new to this board and stock trading. I'm trying to learn and reading until my eyes are red, however I work crazy long hours which makes it somewhat difficult. I would like to ask you seasoned traders (when you get a chance), if you can share at least one tip of what it takes to be successful in these "penny and sub penny stocks". I've been trading since mid April and am doing ok, but I'm not doing something right. Myself, and I'm sure other newbies would really appreciate anything you may offer. This is the only board that I'm going to make this request to because I feel it has the most honest people of all of them. Thank you all and best of luck to you! Bob
-------------------- I'm not getting any younger, it's time to take a chance! I could use some help though. Posts: 9 | From: Ohio | Registered: Jun 2006
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MrDoor, one thing you must learn is how to read charts.. This will take you years.. not weeks to master. If you wish to trade primarily pennies then you must also learn to control your emotions.. NEVER FALL IN LOVE WITH A STOCK!!! Everyone of these pennystocks are scams.. Yes each and every one. This means you should not hold any of them for very long. Buy them and then SELL THEM Make your money and move on. Check out the question and answer board here at allstocks.. Quite a few decent threads there. Any specific questions as you are learning?.. please ask. Good luck.
Posts: 2965 | Registered: Aug 2005
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Here's something I saw on Allstocks last year:
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.
http://www.pinksheets.com/ {Company Info tab is loaded with information} {SEC Filing Tab - wow} {News Tab - Pr's at your finger tips}
http://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
http://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
http://www.sec.gov/ latest filings, litigations, proceedings, or suspensions
-------------------- "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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And here's something that I printed out and keep on my desk.. it's great advise that's been passed on:
Heres one from another great veteran.
By: realityinc21
PRICE IS 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 ***** 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 ***** 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.
DIANA
-------------------- Invest with your brain not with your heart.
-------------------- "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 can't say I'm seasoned in the aspect that I have become successful, but I will contribute in that I think I have a good idea of what it takes.
First and foremost is to not fall in love with a stock. Do not believe any one of these penny companies has a great business plan and will lead to long term growth.
2. Do not become attached to your money. Once you dedicate that money to trading be willing to lose it. Think of it as a game and understand every once and a while sacrafices must be made. It's not money, it's just numbers in front of your face.
3. Learn the difference between technical analysis and fundamental analysis. Master them both. Know when a stock looks great in terms of techical analysis and through fundamental analysis. Which is more important? IMO, look at QBID for which is more important.
4. After learning TA and FA, only listen to yourself when asking if the stock looks good or not. There are too many cons and crooks out there to bother yourself in distinguishing which people you should listen to. That time could be better spent looking at charts or learning new tools of the trade.
5. Realize that 1000% on one play is not going to make you rich enough to retire. Then realize the goal is not to retire. The goal is to make enough money to live comfortably. Can you live on 10% a day of $10,000? What about just 10% on $10,000 only twice a week? That adds up to about $100,000 a year. You're already earning more than most people with masters degrees right there. Making 10% is not nearly as hard as making 100% on all your plays.
6. You can make money even when a stock is falling. This does not mean to short stocks. The point is that nothing falls, or rises, forever. There is support, resistance, and typical movement of a stock. Where all those support/resistance or movements are, are crucial to playing a stock.
7. Follow the volume. Every day there are stocks that rise 65000% on $200 of volume. How are you supposed to make money there? You also need volume to move price. Microsoft consistently trades millions and billions of dollars each day through its stock but it has no where the percentage gains many of these pennies enjoy. The point is that if Microsoft stock had a large influx of cash flow that it doesnt typically encounter then the demand has increased while the supply will dwindle. This increases the price of Microsoft. The same is true for penny stocks. It's not whether or not stock ABCD has $3 million trading a day its if stock ABCD usually trades at $500,000 a day. I guarantee when stock ABCD traded on the $3 million day it had large price movement. Volume moves price.
8. Refer back to rule 5. Except this time, stick to it. Enter a play with the idea that you're only looking to make a certain amount on this play. If you're looking to make 10% and it runs 10%, take your money and move on. Don't let it ride because you'll most likely watch as the 10% falls to 5%, then 2%, then -5% and so on.
9. Refer back to rule 2 and rule 8. Understand that sometimes things don't work out. Sacrafices need to be made and know when you want/need to make those sacrafices. Enter a stock knowing that you may lose money and at what point youre willing to give up that money just as much as you should know at what point you're willing to give up the opportunity to make millions. Take profits when you can and cut your losses if need be.
10. Refer to rule 6 and rule 9 for reference. Try to enter plays such that support and resistance are clear to you. It is much easier to predict a stock at .10 if support is at .09 with resistance at .12 and know when to call it quits than entering a stock at .10 with support at .06 and resistance at .15. The difference would be if in the second example you entered at .06 or .07. When doing so you're creating the possibility for maximizing your profit from .06 to .15 versus .10 to .15 as well as entering near support. If you've enter the position at .06 and it falls to .04 losing support then you've lost only 33% instead of losing from .10 to .4, or 60% of your investment. Entering a stock at the right moment is huge both mathematically and psychologically.
I have many more, but I'd like others to comment as well as you to give your opinion. Matt
Posts: 1504 | Registered: Sep 2004
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Best advice I can give after 3 years of trading. Learn to sell your losers. Set a mental stop. Don't listen to people that tell you "you don't lose until you sell". That is how you lose EVERYTHING. Protect your capital. If the stock reaches your pre determined stop loss, HIT THE SELL BUTTON. Not doing this could turn a small loss into a HUGE loss. I think this is what separates the average trader from the professional trader. You need to have enough discipline to sell a stock and move on. Not easy to do, but it must be implemented if one is to become successful at this.
Posts: 132 | Registered: May 2004
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started the year with $291 in my scottrade account(up over 7900% now), have held a few, and held many, but prefer around 4-8, and ALWAYS have $$$ on the side line for a HOT PLAYS!!
***different strategies work for different people, but the more you hold IMO from my experiences: A)the more you hold, the more losers you will hold (lets face it folks, tough enough to make a true 25-50% on a solid play on one , let alone many) B)the more you hold , the more time you must research to really make it payoff C) if the market flattens or goes down ,like may and june did,almost everything will go down
also:
*don't be afraid to sell a stock immediately if it goes down when it didn't go the way you thought *try to take profit when you are up a true(after fees)25-50% at least on some shares, it makes it harder to have aloser (free shares are always great of course) *take mine and everyone else's thoughts on these boards for what they are >>OPINIONS>> and NOTHING ELSE>>>>Good or Bad(if you like the stock hold) *don't be afraid to double your shares if your holding a stock you like that goes much lower than your original buy price(s), it can really help lower you position, and make you a nice return if you do get a run(just double check your DD) *you must stay with your stocks daily if you want to maximize your opportunites,and try not to ever jump into a stock without really taking a good look.....biggest newbie mistake, IMO
there are many , many other things i do to maximize my chances, and there are many more savy veterans on this board to help newbies and give advice
posted
I would like to thank all of you for your time and advice! I wish all of you the best of luck. Bob
-------------------- I'm not getting any younger, it's time to take a chance! I could use some help though. Posts: 9 | From: Ohio | Registered: Jun 2006
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too much information overload for the newbies... best advice is cut your losses much like in poker if your starting big hand turns into a dud before the river and the other guy has the Nuts... fold the hand... there will a new hand coming along soon... other then that... your best skill is reading... below is a good book suggestion:
A Beginner's Guide to Short-Term Trading by Toni Turner www.toniturner.com
btw i disagree that bollinger bands are necessary.... indicators/oscillators are a matter of preference... what works for one may not work for another person.. myu preferences in oscillators/indicators etc..
1. Volume (the most important one IMO) 2. RSI 3. Moving Averages 4. Candlesticks 5. MACD
-------------------- Let the world change you... And you can change the world.
Ernesto "Che" Guevara de la Serna Posts: 4669 | Registered: Mar 2004
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