first rule, is that penny stocks do not go up in the past few years only a few of the thousands went from pennyland to dollarland.
second rule, these things always recycle... look the dog ncdp has big news and will fly on monday..
third rule, 99% percent of these thing operate like a sine wave and move in cycles...
So you become familar with 10 or so penny stocks and you buy on cycles... cnes buy now at .016 and sell next month at .003 ptsc buy now at .09 and sell in a few months at .15
msep buy now at .025 and sell next month at .05
wait for gtel to drop back and buy it...
this is a hard and fast rule and is 95% reliable.. they call it swing trading...
Posted by <golfman> on :
Im the guy that buys a penny stock and hope it hits the $'s
BUT. I cost average down all the time. When it drops, I add more and pay less overall per share for it. If the stock turns out a dud, then I won't loose as much.
Posted by blueranger on :
ya, thats how you lose money... I lost a lot doing that.. what happens is it pops you ride it up then there is no news for 2 months and you ride it down...
watch the rsi and sell when it gets over 70.. and buy back in when its down around 30... or at least below 50...
this is always true 95% of the time..
Posted by blueranger on :
if you sell over 70 and buy when hit 50 you will always make money..RSI
Posted by Machiavelli on :
quote:Originally posted by blueranger: the bottom line trick to penny stocks is this..
first rule, is that penny stocks do not go up in the past few years only a few of the thousands went from pennyland to dollarland.
second rule, these things always recycle... look the dog ncdp has big news and will fly on monday..
third rule, 99% percent of these thing operate like a sine wave and move in cycles...
So you become familar with 10 or so penny stocks and you buy on cycles... cnes buy now at .016 and sell next month at .003 ptsc buy now at .09 and sell in a few months at .15
msep buy now at .025 and sell next month at .05
wait for gtel to drop back and buy it...
this is a hard and fast rule and is 95% reliable.. they call it swing trading...
When your holding a stock for months instead of days its called Position Trading not Swingtrading .... just wanted to let you know... as for the RSI angle.. guess i convinced ya of that one.. hehehe jkkk ... Posted by blueranger on :
I am not advocating holding for months...
months suck...
if you watch the rsi you can get in and out in days...
when the rsi goes over 70 sell...
stay out till it hits 50 or below watching history..
I only hold a stock for months when i get stuck.. i hate it...
Posted by blueranger on :
now most stock will only spend a few days at 70 or over and will languish at 50
so cnes is a good example your rsi history shows it languishing at or below 50 for a month so stay cash or buy someother stock till the month is up.. then hop on...
The goal is to get in and get out at the right time and cut the time your in the stock...
Posted by cruz on :
good points blue.
Posted by blueranger on :
some stocks bottom will be rsi 30 and they will pop to rsi 50 and never go over 70 others will be rsi 50 and pop to rsi 70... look at the history..
it may spend 30 days or 30ish days around rsi 50... jump in... then in the next 5 or 10 days its rsi will probably pop... when it touches 70 start looking for the parachute..
In fact it may be better to trade the rsi and forget about price... might be better for your nerves...
Posted by blueranger on :
if you would have followed this rule a just a few days ago you would have bought pax becasue it was rsi 30... and your 50 cents would be 150 today... and you would be selling right now..
Posted by blueranger on :
go ahead and test this rule on adsx its rsi is 30 now and buy it and hold it to rsi 50
and stop losing money...
Posted by cruz on :
mlxo is a good example to play
Posted by blueranger on :
mlxo will play but sell it when the rsi touches 50.. notice hit it cycles between 30 to 50..
Posted by cruz on :
that's my plan adsx is interesting. but what about stocks like BOOM where it keeps going and going.
Posted by blueranger on :
boom is in a serious decline right now.. just finished the over 70 rsi and its turned down ward... you could by at 50rsi but it looks like the macd has a long way to go to reach zero... so just wait on boom.
Posted by cruz on :
well i can't afford BOOM. i am just thinking of affordable pennies that have the same potential like GTEL or CNES - hold long. could you explain the histogram?
Posted by blueranger on :
this macd and histogram are at the bottom at stock charts dot com
the macd is a large black line and a small blue line... when the black line is above the blue line its running...they cross over one another.. so when the blue line is above the black line it really declining... like boom
now the histo graph is the little graph that runs in the middle of the macd... it is made up of squares... and the squares always form a wave.
so the histogram can act as an indicator of what the macd is going to do...if its on top of the line its running... and it will never just drop below the line it always forms a wave... so it lets you predict the trend.
Posted by blueranger on :
go look up boom at stockcharts dot com its the perfect example....
macd is at the bottom.. the blue line is over the black line so its declining.... and it has a long decline ahead of it...
the histo graph is just below the macd... green and white boxes..
Posted by cruz on :
thanxs blue! thank god for firefox too. this tab browsing is a must to have in stock trading
Posted by cruz on :
yes - people should have sold boom when the black crossed the blue.
Posted by cruz on :
they should have sold the latter part of march
Posted by DayRunner on :
What place have you guys found the best charts?
Also, can you explain the RSI a bit, and help out those that don't know?
Posted by blueranger on :
stock charts dot com
rsi is the top graph on the chart at stock charts dot com..
it ranges between 30 and 70 when it is down around 30 the stock is over sold and the price is at it bottom.. and when its over 70 its over bought... go pull a stock chart
Posted by cruz on :
RSI - Relative Strength Index
Posted by DayRunner on :
Yeah, they have some nice charts there. Thanks!!
I'll read up some more.
I've run into a lot of people that say that the candlestick charts are very useful...but it seems most of them don't actually use them and trade stocks..haha. These charts on stockcharts.com, have much more to offer than just a standard candlestick chart.
One thing I have been noticing lately is that where many people will steer away from the widely traded stocks like GTEL, ICAN, and all those that turn really big volume, these are the ones that offer the most dependable cycles...therefore giving the best security, compared to many penny stocks that will hit one spike in a year time.
Posted by blueranger on :
qbid when its rsi hits 30 it starts back to 50 and then falls back to 30 and then pops...
its like a trend...
Posted by Ktrain420 on :
good post blue.
Posted by bullgod74 on :
RSI - Relative Strength Index.
The RSI ranges from 0 to 100, but a stock is considered overbought if it reaches the 70 level, meaning that you should consider selling. When it is a true bull market, an RSI of 80 might be a better level since stocks often trade at higher valuations. Likewise, if the RSI approaches 30, it is a strong buying indicator (20 in a strong bear market).
Posted by zoltan on :
Agree'd good post!
Posted by devilbutt on :
Good information. I started using charts (macd, rse, slow stochastic) about 8 months ago. VERY interesting. Actually I tried using that info on my 401k. Got out mutual funds the beginning of April and into Stable Value/GIC. Saved me a couple of dollars. Watching the charts now for re-entry into mutual funds. Was going to get back in about a week ago but things just didn't look quite right, plus some market timing rule. Technique may be worth researching for 401k or 457. Any thoughts?
Posted by devilbutt on :
opps, it was the beginning of MARCH when I got out of the mutual funds not April. Time sure flies when your having fun. (Took a trip down to Cancun). Lost track of time!
Posted by gatlin on :
blueranger - excellent post on the charts. i will continue to follow your post since i'm new to the boarde.
gatlin
Posted by Dannzon on :
Very informative post...good stuff..
Posted by Dannzon on :
DO you like this RSI theory for all stocks, or only the pennies due to their repetetive cycle patterns....seems non penny stocks can also be more greatly affected by news/pr and other fundamentals. These could negate what the RSI might be showing... What do you think ..?
For example...take AVAN ...
it is at a 52 week low right now of 1.50 ...the RSI says buy as it is down near 30 ...
but....what if this big recent decline and subsequent 52 week low were caused by some sort of bad PR / didn't meet earnings, loss of big contrat etc.... would these negate what the RSI is showing, or do you feel that the RSI indicator is telling enough that the low RSI still means "buy" ??
Posted by Dustoff101 on :
Dannzon....the way I read RSI is it take's good and bad news equaly. Example; the rsi shows the oversold posistion when sold off on bad news and shows the over bought posistion on good news..All it is ,, is a indicator.
Posted by Dustoff101 on :
I sold the majority of my posistion in ACUP Friday, based primarily on the RSI. It was heading towards 80. The stock closed down quite a bit down from it's high.
Posted by cruz on :
technical analysis and company fundamentals, pr's are two different animals
Posted by glassman on :
putting it all together is no "trick" it's friggin' hard work... Posted by cruz on :
nothing is easy in life. what do you think - my new sig? not original though.
Posted by glassman on :
becoming a parent is pretty EZ ... being a good parent?
Posted by cruz on :
becoming a HUSBAND is pretty EZ being a good HUSBAND?
Posted by Machiavelli on :
this is a mini essay i wrote on RSI earlier this year in someone elses thread on the topic that if i remember correctly was in the General Investment forum.. if you want to find it do a search with the words RSI and my name (Machiavelli)...
Sorry Risky.. i would of answered your question 2 days ago but i had problems signing into the bulletin board.. but it seems to be working now.. anyways RSI stands for Relative Strength Index and it gives you a indication if a stock has been overbought or oversold... if it's either or then it will most likely become a "correction" .. if overbought it will go down in price because its overpriced in traders minds so they will take a profit and sell..so the RSI will begin a downtrend.. if its oversold then the price has gone too low and it could be a bargain .. therefore traders will start buying and the RSI will begin a uptrend.. so the way to use it to analyze stocks is if the RSI hits 75 or above then its overbought and you should take partial or all profits because it will correct itself very soon if not later and begin a downtrend in price... if the RSI goes down to 25 and below.. look for it to hook up into a uptrend and buy it at a bargain.. when its between 25 and 75 look for uptrends to make a entry into the stock or downtrends to exit and enter it later when it recovers.. Anyways i hope this answers your question.. let me know if you understood... in your chart options select RSI as one of your Indicators.. I also use the OBV (on Balance Volume) which "indicates" if money is flowing in or out of a stock.. same concept though .. uptrend means price will go up because money is flowing into the stock and downtrend means price will go down because money is flowing out of the stock.. try to use the RSI and OBV when the price isnt moving but the RSI/OBV is... in that case they are giving you a early signal which way prices might or most likely move...
Posted by glassman on :
i agree mach, i like to see more than just one indicator working..
there are so many chart plays every day that if you are just gonna play charts...you can usually find a play with mutlple BUY indicators.. Posted by cruz on :
blue is using more than one indicator is he or not - the MACD and RSI?
Posted by keithsan on :
quote:Originally posted by glassman: becoming a parent is pretty EZ ... being a good parent?
creating a child is easy
being a PARENT is hard work
Posted by keithsan on :
quote:Originally posted by cruz: blue is using more than one indicator is he or not - the MACD and RSI?
In a chart, you can find anything you WANT, reasons for it to go up or down.
another trick is to learn indicators and why. I prefer CCI over RSI but do use RSI
I love PPO and ADX in conjunction with one another
for bottoms and tops i like stochs slow and fast.
I like macd for divergence but find crossovers late etc...
get comfortable with one or 2,make sure one can confirm or deny the other. not 2 that say the same things.
Posted by glassman on :
we were somewhere around Barstow on the edge of the desert when the drugs began to take hold.
Hunter S Thompson?
Posted by keithsan on :
yep
Posted by yoke yanker on :
Keithsan, What happened to Wang Chung tonight? It warmed my heart and put a smile on my cheeks everytime I read it. (-;
Posted by Bob Frey on :
Think he is having a dif flashback.
Posted by Peaser01 on :
Check this out.
Compare the PPO from February's run on GTEL to the current run. It's kinda scary and exciting to think what will happen in the few days to come. I think the RSI will rise above 90 on this current run. Any suggestions or comments?
quote:Originally posted by yoke yanker: Keithsan, What happened to Wang Chung tonight? It warmed my heart and put a smile on my cheeks everytime I read it. (-;
Try and ignore posts and changes made after midnight on a saturday, (any day for that matter)
Posted by glassman on :
after midnight? "we gonna let it all hang out"?you are a slow starter man..
i was gonna start quoting from Kerosene Hat, but i decided to do an expose on the diamond "blinded" instead...
"the sun drags locomotives to the ocean, no-one knows this like i do you see"
or "all these cats with holey jeans, dirty hair and titty rings, Say what's your scene man, we got these questions. is it true that you have sold your soul? and I say hey man, I don’t know Lend me a quarter won’t you, I’ll call my ac-c-countant."
Posted by charger on :
What is the deal with MRKL with a RSI of 24. Homeland security... Will this dog have his day?
Posted by glassman on :
some of them come off this with a bang, and others just limp along after the MM's are done with them...
BCON came off the list early in the last week and it's still struggling, but might be one to get in this week...
Posted by Peaser01 on :
MSEP did the same as well. It went up briefly about a week after coming off the SHO, then kept on falling like it was still on the list. It looks like it bagan it's rebound Friday though finally.
Posted by keithsan on :
quote:Originally posted by glassman: after midnight? "we gonna let it all hang out"?you are a slow starter man..
Early starter, i don't quit and i become an obnoxious typer by midnight (sometimes earlier)
...its almost like drunk dialing.....
Posted by glassman on :
i used to party till the sun came up and then curse the glare and close the curtains, then i got "tamed" Posted by keithsan on :
I'm tame my injun on whiskey days are over about the only liquids i take in are coffee and beer though. Posted by cruz on :
looks like you found some 'puter time today keithsan Posted by keithsan on :
yep, in and out, getting mind set for week and what to expect...
Posted by stocktrader22 on :
can someone explain about the histogram for the macd, the bigger the bars the better or worse, when the bar seems to be at its height before the wave downwards is this a good time to buy if RSI is right?
Posted by keithsan on :
i have no idea what u r speaking of
Posted by glassman on :
the bigger bars just show more divergence between the different moving averages relaitve to the EMA...
i don't find the histogram that useful to find runners, just as an indicator to support other indicators...
i prefer cmf....
Posted by Dustoff101 on :
Dealing with a overgrown 180x240 lot on a side hill when you should be fishing ain't easy.
Posted by glassman on :
goats....
Posted by accesscard18 on :
Can someone briefly explain me how stochs slow and fast works and give me an example... I am having a hard time understanding...
thanks
Posted by Topcat on :
Thanks for the posts, lots to learn.
I've been watching one stock in particular for over 18 months now HIV.OB.
Now trading at .23 RSI at 30.
Rode the waves a few times on this one before, they also have a excellent product!
Back in today, should be worth 30%......
Posted by Wallace#1 on :
Glass,
"goats...." LMAO
Also noted the "blinded" dig. They just do not know any better.
Posted by zoltan on :
quote:Originally posted by keithsan: I'm tame my injun on whiskey days are over about the only liquids i take in are coffee and beer though.
Its only my 21st birthday today! Last night i had 9 rum and cokes..a case of beer and 22 shots at the bar... Now im at work... Looking at MLXO and the only thing thats stopping me from puking is the price
Posted by glassman on :
quote:Originally posted by Wallace#1: Glass,
"goats...." LMAO
Also noted the "blinded" dig. They just do not know any better.
goats are cool once you get past their "evil" looking pupils.....
i heard some guy is getting a contract to clear brush for fire control in SoCali...he's bringing them from Greece or something like that... yo-delady yo-deleady yoo-hooo ooo ooooo Posted by Wallace#1 on :
Are you drinking kool-aide now?
Posted by G_Ho on :
quote:Originally posted by zoltan:
quote:Originally posted by keithsan: I'm tame my injun on whiskey days are over about the only liquids i take in are coffee and beer though.
Its only my 21st birthday today! Last night i had 9 rum and cokes..a case of beer and 22 shots at the bar... Now im at work... Looking at MLXO and the only thing thats stopping me from puking is the price
I'm going to have to call bull**** on that.
a case of beer and 22 shots and 9 run and cokes?
Posted by zoltan on :
No sir ree bob.. UP HERE in CANADA we do things a little different...Eh my girlfriend can almost polish off a flat in a whole day. Thats like 2 beer an hour Woopty doo.
Posted by blueranger on :
i would like to try some of that yukon beer..
Posted by <stock fool> on :
Question...when your stuck in a stock that's in a rut, what do you do? Do you keep it for months hoping it turns around or do you cut your losses and get out? I've been in PTSN for 3 or 4 months now. I bought in too high and then took the rest of my investment money and bought more to bring my cost down to .0008 (I know...not too smart to put all my money in one stock, huh?)
I'm currently flip/flopping on what to do...hold until May when news is suppose to come out or do I sell knowing that I'd be selling at it's low (can't seem to get above.0007 anymore). My patience is really running thin on this dud.
Thanks for you comments!
Posted by Machiavelli on :
Either get out or put a stop/loss (in this case a mental stop/loss) and when it hits that price get out.. protect your profits and cut your losses when it comes to any stock.. put your money in a better stock.. #1 rule in trading.. never fall in love with the stock... that news in May is a could/would/should be news.. it might come out or it might not but either way you will be holding the bag.. as for putting all your money in one stock.. yes that was not wise.. you should never commit no more then 1/3 (33.33%) of your bankroll in any one stock.. even 1/3 is high but 1/3 is a good all around number and rule to go by...
Posted by zoltan on :
Never try to catch the falling knife if its starts falling... but if i were you.. and id wait until may if i was stuck BUT if its still falling cut your loses short invest in something else...make your money back.
Posted by slim on :
You will probably get many replies to this, everyone's situation is different. If I was in a situation I would cut my losses now be very careful on my next investment and try to recoup. I find it is not a good idea to try to dollar average on penny stocks, I have done it and won, but it is risky business. Never put all your money in one stock.
Posted by Ziptar on :
I am new to stocks, I have read this thread and am learning the charts i have a decent watch list going.
I had planned on "playing" my watch list without actually buying any for a month just to see how I did.
However, I think I am going to buy MLXO. Chart seems like it is just about to swing. RSI is just about 50.
How did I do as A n00b?? good pick?
Posted by cruz on :
be sure you can afford to lose the money you invest.
Posted by Ziptar on :
I am, starting small.. few hundred bucks. just want to see what I can do in the $0.00 to $0.0000 world. I'll get bolder as I see if I can do it.
Posted by Dustoff101 on :
Hmmmmmm.....Stuck in a stock, thats stuck in a rut, started ta putt, but decided to dither, now that damn stock is stuck up my bxxx.
stockfools stock problem.
Posted by Machiavelli on :
quote:Originally posted by Ziptar: I am, starting small.. few hundred bucks. just want to see what I can do in the $0.00 to $0.0000 world. I'll get bolder as I see if I can do it.
Very bad world to enter if you only have a few hundred bucks.. I would recommend stocks from $1 to $4.99 per share because at least with those you can put a stop/loss through your broker... with stocks $5 and over you can put a trailing stop/loss.. today i was stopped out of ASTM ... bought it at 2.22... went up to 2.45 yesterday and it went back down to 2.22 today.. i got stopped out at 2.32.. so i made a profit.. maybe not as much as i had wanted to but i protected my profits and limited my losses.. now i can enter the stock again when it looks ready to be ripe..and i have more money to enter it with then i had before.. it probably went down today because of the overall market.. the Dow Jones was down like what? 104 points and it became a domino effect..
![[Big Grin]](biggrin.gif)
...![[Roll Eyes]](rolleyes.gif)
just wanted to let you know... as for the RSI angle.. guess i convinced ya of that one.. hehehe jkkk ... ![[Smile]](smile.gif)
adsx is interesting. but what about stocks like BOOM where it keeps going and going.
![[Wink]](wink.gif)
my girlfriend can almost polish off a flat in a whole day. Thats like 2 beer an hour Woopty doo.