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!
Good Luck Rick
Posted by Rules on :
Nice post!
Posted by Akira_Lapin on :
On behalf of ... well, no one ... because I only speak for myself as a newbie.
Thanks for the info and advice, Rick!
Posted by jack85 on :
rick this is one of the best posts i ever read! I'm going to print it and hang it next to my computer and read it every day before trading begins.
Posted by Chas35 on :
great post rick...the hard part is figuring out which ones will run on news..I see a lot of stocks on this board drop on good news...like the company puts out a great PR and dumps a few million shares into the market at the same time
Posted by Thorn on :
Lol. If I had all day (or even an hour) to do that, I suppose that would be a great strategy. Thanks for the info tho.
Posted by J3 on :
Ric,
Isn't there a required $25,000 account minimum for pattern day traders?
Posted by vinnie filoia on :
RIC WHATS THE NEXT ONE TO GET INTO THANKS VINMAN
Posted by futurama08 on :
J3: I think if you use "Settled Cash" only to make these trades it doesn't matter. It's if you are using the proceeds from one stock sale immediately to buy another stock and sell that second stock without the first one clearing that you need the $25,000/day trader minimum.
Posted by rickpic on :
J3 yes there is which makes the gains I have for this month even better because they are based on only 2 trades per week all in all out! You can however get around this by trading day over day! Buy today sell tomorrow!
Vinnie I don't see much today! CALI was running hot but the momentum is down so I passed on it. I did however just get back into BTSI which I traded earier this week buying at .032 and selling at .038 and now I'm in at .032 again with more capitol!
Don't however buy anything without doing your own DD first please! I would hate for people to follow me and lose. That would suck for you and for me!
Posted by Thorn on :
One of these days I'll gain the insight to sell high and "know" that it will go down. Nice call, on BTSI, rickpic.
Posted by binnocent on :
Excellent Post Rick!
I have to agree with your strategy 100%. I got back into trading about 2 & 1/2 years ago with $20,000 and thought I'd try pinks and OTCBB stocks. Well I learned the hard way dropping my portfolio down to $4,500 about 6 months ago. I then decided there are no long holds in these companies. Just way to many crooks. So I decided no more holds long. I have been doing 1,2 or 3 days, which I am also leaning towards going max 1 day or next morning gappers only. I am happy to say I've increased my portfolio back to $9,700. Still a long way to get back to my starting point, but I'm having fun again and pretty sure I'll get back and beyond.
Good Luck to All!!!!
Bob
Posted by rickpic on :
binnocent
Nice turn around! This is the info that the MMs, hedge funds, and theves don't want us to know! Its a fast market and only the fast survive!
rick
Posted by Big Red 1 on :
WOW - thanks RICKPIC - this is awesome info!!
Posted by J3 on :
Ric, I've been trying to follow your advice and watch the news looking for the next runner. I've noticed that one of the problems I've found is that when really good news hits and I check into the stock, either the pps is too high, or the volume is too low, or both. Have you ran into this? Any suggestions?
Posted by Jerm on :
Ric,
Great post... much thanks! I have been doing something similar to you the past couple of weeks with some success... I'm still learning when it comes to picking the right news that will move a stock. I've always thought it would be cool to have a live chat room running with mature individuals (i.e. ban pumper/dumpers, jerks, etc) discussing the day's stocks, etc.
Posted by Superbee383 on :
I'm curious about something too. Ric, you say you only pick 2 (on average) stocks per week to buy/sell? This question is for all of you though. Approximately how many different stocks do you hold on average? And/or buy-sell per week? And what do most of you put into a purchase? $200? $500? $1000 or more? I'm still a newbie, and still don't put alot into one stock except for a couple. But I'm curious how you all play it. Thanks in advance!
Posted by rickpic on :
As I said at the begining of this thread I've been going all in with this particular account and taking profits ASAP to make sure that I stays green! Typicaly 2 trades a week with this account.
Posted by Jerm on :
Superbee,
FWIW, I have been playing with $500-$1000 trades depending on how much I have free and how I feel about the stock... just remember though... the commission fees can really eat up a profit especially if you are buying with small chunks.
Posted by Leardron on :
Ric? What chart or charts do you look at and what site do you go to?
Posted by Superbee383 on :
Jerm, you are so right about the commissions! I once read on here, someone 'SAID'he was able to talk Ameritrade into lower commissions since he did so many trades. He said he was paying 7.00 instead of the 10.99. Has anyone else ever tried calling any of the brokerage firms and negotiated lower commissions?
Posted by rickpic on :
just banked another $1700 from EEGC now at $8300 up 1100% this month! All it takes is the right news and the bank to play it! Oh yes and the smarts to take a profit!
Posted by Andreas on :
Rickpic:
Great postings!!
How do you determine the right time to get out and is there some kind of rule, which news (content) is favorable for a higher price?
Posted by rickpic on :
well EEGC coming out with a 1.1b announcment is my kinda news and I take profit when the momentum turns. As long as volume is coming in strong I feel its ok to ride a dip but when that volume slows way down its time for me to move on!
Posted by bmarley5780 on :
best damn post I have seen in awhile...
stars for ya brotha!
Posted by Andreas on :
quote:Originally posted by rickpic: well EEGC coming out with a 1.1b announcment is my kinda news and I take profit when the momentum turns. As long as volume is coming in strong I feel its ok to ride a dip but when that volume slows way down its time for me to move on!
That makes a lot of sense!!
I bought exactly 1 minute after news came through and riding it right now
Just have to keep an eye on it and sell at the right time....
Thanks Ric!!
Posted by Polarbear17 on :
Nice stragety Rick , Put as my aviable cash is lower than what you started with , and i have some stocks that i have held long term tying up cash , i wonder if i have left my self to spread out .
I did manage to pick up some Amhd last week at .004 and sold for a $13.00 profit in 3 days.
An ideas Rick?
Posted by rickpic on :
Polarbear thats a mess! Looks like you are the last man out! My idea would be to switch to being the first man out! Little bites add up!
Posted by rickpic on :
Leardron I'm just using the chart provided with Ameritrade. I'm not to much of a tech guy but I can hold my own when reading a chart! LFWD was a chart play and payed off big time this week! Most of the time its news that I'm running with though. The bigger the better!
Posted by Polarbear17 on :
And how do you suppose i do that , Rick. I understand that little bites add up but i've held some of these stocks for over two years waiting for the big pop. With nothing to show but r/s and dilultion. My best bet is to hope that i could flip PCCR at .0002 and hope CWMF isn,t a scam and i see a little pps rise with the next PR. I need to get some more cash so i can buy enough so my $5.00 commsion at choice trade is of little effect on my selling price.
Posted by JoeMillion on :
Great Job rickpic!!
You the man!!!!!!
Joe
Posted by DQ. on :
Good post Rickpic. I wish I had the luxury of being able to sit at the computer every day and trade like that but I don't. I do think there are long term pinks though. I have held PLNI for a long time and am up about 13 grand on it and it is going to move way above that in the next few weeks. JPHC is another example. I have a blast trading and really do wish I could trade daily like that. Maybe after a couple of these longs make me rich I'll be able to trade more often. Thanks for the post and keep up the good work!!!
Posted by podcaster on :
rickpic i gotta hand it to ya-- brilliant post!! i have been thinking exactly the same thing last couple of weeks but couldn't quite convince myself it wasn't fantasy... thanks for posting. one important difference- you added a whole new dimension to my thinking on this: news and pr. my approach was strictly TA
Posted by rickpic on :
DQ
Great job on PLNI, but you are playing one in a sea of red! My point is for every OTCBB or Pink stock that goes up and stays there, there are 99 that go up and come back down! By playing news I reduce the odds to the here and now! Meaning that by playing huge breaking news I'm swinging the odds in my favor that the stock will go up in the first place and by being on top of breaking news I am able to be one of the first one in! By selling as the stock rises I am also swinging the odds n my favor to get back out with a gain. I understand that many can not play stocks all day, but many more could if they figured out that even a small gain adds up, instead of going for the gold on each play. Just the length of some of the threads here at Alstocks tells me that many hold for months and months after letting a gain pass them by! I have gotten to the point where I don't even want to hold stocks over night, because while the stock I hold over night may go up tomorrow, at the same time another stock may present itself pre market and be a better choice for that day!
Posted by rickpic on :
Polarbear
If all your stock was cash, instead of the waiting game for them to save you, you would be playing the waiting game for the next really big PR to start you in the right direction! Its not about rushing into the first fairly good PR, its about waiting with cash for something big! While waiting with cash there is no risk!
Point of fact: If you held CWMF below .0004 prior to the run it had 2 weeks ago and you still hold it today then you let an opportunity to take a profit pass you by. I on the other hand was holding CWMF at .0002 and got out at .0004 missing the major fun, but taking a 100% gain and moving it to another gainer for more profit!
IF is a very key word here! You said if they put out news and it runs up! This is the position you are in because you are holding. I on the other hand being on the outside looking in say. It they put out news I will buy back in and gain on the run!
Your broker fee is low so you should be able to make 10-20% gains on even $200-$400 and not have to worry about them. Go back to the top to see what 10% compounded for 20 days is!
Posted by DQ. on :
rickpic...you are certainly right. I have several stocks that I have been holding a long time and am still waiting for them to do something again.
As I said, if I could sit here every day I would darn sure be doing it your way and if others reading this thread can be at their computer all day I would strongly advise them to trade like you. Best of luck to all.
Posted by JHAWK01 on :
THANKS RIC FOR THE MINDSET AND STRATEGY. BEING NEW TO TRADING, I'VE DONE OK, LOST A LITTLE ON SOME, GAINED MORE THAN I'VE LOST, BUT I SEE YOUR APPROACH IS MORE ABOUT CONSISTANCY AND NOT GETTING CAUGHT UP IN THE EMOTION OR DESIRE FOR HIGH PROFITS. GOOD IDEA. MY QUESTION IS WHERE ARE YOU GETTING A JUMP ON NEWS? I'M SURE THERE IS A WEBSITE THAT IS DEDICATED TO THIS INFO AND CAN YOU OR SOMEONE ELSE LEAD ME TO IT OR THEM? THANKS A TON!
Posted by rickpic on :
my news source is listed right in the first post at the start of the thread!
Posted by Rex on :
Is there a news source with all of the Penny PRs? I only see OTC on Stockhouse.
Posted by rickpic on :
otc covers penny stocks!
Posted by rickpic on :
Its gonna be hard to top last months 1100% gain, but I'm sure ready to start trying today!
Good luck this month all! Rick
Posted by BuyTex on :
excellent: mirrors my idea for a new "game" I'd like to propose...will post more when I have the details worked out...
Posted by Slippery Wing on :
OK, rick, after a few days, how are you doing?
Posted by rickpic on :
Well after taking a $500. hit on CALI to start the month! I placed investments in TWOG,BDWH, and GWGO and today moved nicely into the green for the month, and with news coming on TWOG it could be a very very good week! Good Luck All!
Posted by Polarbear17 on :
Ok Rick, What was your intial working capital, you started with last month. So far this month i'm up $45 in the green. I placed investments in CWFG,ICMH,and am in the green for the month,hopefully with news comeing on my two big picks. Remmber i started with 0nly $300 on the 15th of sept and am up 50%.
Posted by rickpic on :
$740 or $780 I think! Its over $8700 now anyhow!
Posted by bmaxingout on :
quote:Originally posted by Rex: Is there a news source with all of the Penny PRs? I only see OTC on Stockhouse.
on the news home page you need to select the correct tab
Posted by bmaxingout on :
quote:Originally posted by rickpic: $740 or $780 I think! Its over $8700 now anyhow!
compounding is a wonderfull thing good luck, bmax,
Posted by Polarbear17 on :
Isn't it, i just wish i could find the trick to make mine compound faster. I'm hopeing for a very good month , go CWFG Heres looking to contracts.
Posted by Prdponce on :
quote:Originally posted by bmaxingout:
quote:Originally posted by Rex: Is there a news source with all of the Penny PRs? I only see OTC on Stockhouse.
on the news home page you need to select the correct tab
[ October 12, 2005, 19:29: Message edited by: Prdponce ]
Posted by crockett on :
rickpic nice post, one of the best posts I've read here. I haven't activly started trading yet, but I was looking at penny stocks and I felt like this was a fast game and I didn't understand why so many guys held them for so long.
I think I'm going to spend the next week using your method to make fake picks and see how I do.
Posted by dragonsmoke on :
That was an amazing gain. Do you think you could be consistent. You might just start a fan club
Posted by Lucas Brachish on :
Rickpic,
Very inspiration post. With pennies I've been trying to do the quick trades -- 10% here and there -- but lately the darn things things won't sell when they're up and then they bttom out and stay there for weeks, turnign me into a long by default.
But seriously, if you keep even half of these sorts of gains up and post everything in a designated Rickpic Thread or on a blog of your own, you will have a fan base ... and probably a book deal in a year. Congrats on the great month you've had! Keep it up. I'll be looking for your next short-term picks...
Posted by Lucas Brachish on :
Speaking of news affecting stocks, has anyone tried any of the related stock market software aps available out there? One that caught my eye is "StockSpy", which tracks how news affects stock prices, but I don't know if it updates fast enough show when it's a good time to get in -- or if it's only analyzing data afterwards, EOD.
From Download.com .... If anyone has any thoughts on this sort of thing, I'd be interested....
"Stock Spy is a one-of-a-kind software application that allows you to instantly understand the effect of the news on the price and volume for any stock. It provides you with an easy visualization and pinpoint important stock events to make better investment decisions. You will learn where a stock came from, where it's going and why, all in a crystal clear manner. It gives you the edge, whether you are an individual investor or professional trader."
Posted by 100prcent on :
Nice to see people making money and sharing there ideas. I also made a killing in the last month. The right place at the right time I suppose. Heres where I made a killing.
And to think... I only have one star lol
Posted by Zygore on :
Great post Rick,
I think I am catching on to your method. Couple questions though. Looks like you are currently in the energy and gold sector which is pretty much the buzz these days. Do you tend to stay within a specific sector or does it really matter? Given that what type of news really grabs your attention? Finanials,contracts,growth,etc.. Lastly, it's been my experience that on great news a stock usually takes off first thing in the morning, then experiences a pullback. Do you put in a pre market bid at or above the ask, wait for the stock to take off in the am and try to get in, or wait for the pullback?
Posted by rickpic on :
Zygore
Yes I do somewhat follow sectors without really thinging of it that way, but the buzz in any given month or quarter usualy is within a sector. I tend to go with stocks that I have come to understand. Such as mining, gold, silver, oil, no diamonds (Damb CMKX tought me that) Real estate is another sector that I understand pretty well, but when it comes to large PR's I really don't care what sector there in. For instance I was on the BOCX run with there medical breakthrough very early and road it for a very nice gain, and there are many others, but that one just comes to mind.
As to when I get in. I get up early and read every pre market news of any significance within the OTCBB market and if I find a gem then I am usualy looking to place a bid 1 minute before the open at the ask. How long I hold it depends on how fast it runs. I sell into the run. Before the momentum slows down so that I can safely exit and not get stuck it the stock, when it retreats. Then I either wait for it to drop and re-enter or move on to the next one.
As for consistancy my gains chart shows just that and with few dips, but when it comes to loses along the way i just take them in stride and find another gainer. I certainly don't dwell on loses or missed major gains. I just don't have time for that.
Good Luck Today Guys and Girls!
Rick
PS: Please don't follow anyone blindly! Do some DD and play safe!
Posted by Zygore on :
Thanks for the reply Rick,
I will take all that into consideration. I plan to give your method a try and I will report back later on this thread about all the green I make hopefully.
The only thing that confuses me though and I need to get clear on it before I start this method, is the amount of day trades I can do before I get myself in trouble with Etrade which is what I am currently using.
I say this because if you use all your funds into one stock, buy at open, sell during the run which doesn't take long leaving plenty more time during the day to play others, it seems clearing the transactions could get quite messy.
I do have a margin account and I usually have no problems selling one stock and using those funds to buy another right away but I have never been an active day trader before.
Just worry about having Etrade freeze my account on over trading.
Posted by rickpic on :
there is a three trade rule on day trading in any 5 market days if you have less than $25k in a margin account, that covers day trading. As long as you don't do 4 day trades in 5 market days your ok! If you have over $25k in a margin account there is no limit to the number of day trades you may place, as long as you stay above $25k. A trick I have learned is that a buy in the afternoon and sold in the AM is not a day trade even if you buy back that same stock on the same day you sold it. Day trading only works one way its defined as buy and sell in the same day and not sell and buy in the same day! Good to know if you have used up what your allowed!
Posted by Zygore on :
Ok now I am understanding Rick,
I did a practice run this morning and picked 4 otc stocks with pre-market news and they are all in the green! NGNM FEEC TERX and LGCP I think you are really onto something here Rick!
Thank you for sharing...
Posted by jagman925 on :
Ric,
Take everyone through your process of actully picking an individual stock and how you find one at the right price. Are you reading every news post at http://www.stockhouse.com/news/ or skipping around?
What mechanism makes you pull the trigger? And how are you monitoring changes in volume?
Posted by rickpic on :
Jag the post pretty much spells out the process but if you would like to pay me $1000.00 per hour I will do as you tell me! Posted by Lucas Brachish on :
100prcent,
'Tis funny: Your list of winners is like the mirror image of my losers this month -- I had most of exact same stocks but bought a while ago at prices that turned out to be too high... so I probably sold all of these stocks at similiar prices to you but at a loss. Actually, I'm still holding CWMF, but it's in the red for me...
I'll keep an eye out for your posts. Share the winners and I'm sure your star rating will rise... I'll try bumping you up a bit right now....
quote:Originally posted by 100prcent: CWMF 400% MMIC 300% LFWK 850% 9 trades (upset some people:) NNOS 450% WDAM 900%
Posted by MoneyHolic on :
just listen to Pens!!!
Rgds. MoneyHolic
Posted by rickpic on :
Closed up again! $9300+ Posted by jagman925 on :
Ric,
I've been playing the market the same way but picking stocks through stock scans like at stockcharts.com, or watching top % gainers and taking the profit off the momentum.
VIVI was one of my 1st picks and went from .10 to .71 in a couple of days last year. I left some money on the table on the way up and moved on (also gaining 37,000 shares of a spin off company due to go public near the end of this year).
I jumped on MSEP on the way up and jumped of at the turn. Got into PLNI * .005 and rode it to .002 and back up to .015.
I grabbed CNES (a little late)on the way up to .01 and also sold early the 1st time. Then got in and out on some of the dips, making $5500 one day. I bought a car for my son and a transmission for my car, leaving about $500 in the acount.
Big runners have cooled off this year, with a couple of exceptions, and I've just been toying around waiting for CNES to pop again on news of their Multi-channel H-net product due out any day. Then diversify and play momentum again.
I like your strategy and concept but seems like a hell of a lot of reading. I was just wondering specifically about your search process and how you think. I wasn't asking for you to do the work for me. If you want an easier way to find winners I'll tell you. But you'll have to give me my $1000 back. Ha!
Posted by Polarbear17 on :
hey rick , i like your strategy put i seem to have one big problem with it , It seems that for your system to work you need money something i don't have. With my limted resources i find myself holding he bag again ,waiting for news so that at least one of my picks will put me in the green. Currently holding . AMHD CWFG ICMH ECUI CMKX LBTN PCCR
Posted by rickpic on :
First of all I only read headlines, till I find hot news, so its not that much reading! Second its a very fast paced way to trade and sometimes I'm in at the open and out at 9:45 taking the gain with me and moving on! Third is that the whole point to this thread was to start with very short capitol and build on it by compounding gains day over day or even trade over trade! Good job with your gain though! You have 49 minutes left! LOL Posted by rickpic on :
Polarbear you need to go back to page one here and re-read it! If I had what you have I would cash out of the crap and use it to buy gainers.
Posted by Polarbear17 on :
I agree but i dont want to miss out either, i have a good feeling about AMHD which i am showing green 24% gain. I hear CWFG should pop once news comes out before the end of the month, sitting on 500k at .0002,Same as ICMH and PCCR. Can't lose on PCCR bought in a .0001 . Saving my long term dogs LBTN and CMKX so i could sell them at a lost for tax purpose's once i make some gains.
Posted by rickpic on :
another great day went from $9,300 yesterday to $11,500+ today!
Posted by prefect on :
that's great rick...wish I could do what you have done.
Posted by rickpic on :
1557% in 6 weeks! it works if you work it! Posted by prefect on :
heh, well I wish I had your luck and intuition.
I am going to try again starting on monday, if I lose that I think me and the OTC were not meant to be.
Posted by Polarbear17 on :
Hey ric. Have you had any problems selling , i find that since i have been with choicetrade for a month now i have no problem filling a buy order put have only manged to have one sell order filled. It dosnt matter what the price is i've even chaseed the price down from what the ticker shows still remaining in the green thought.Seems that my sell orders just sit there,either Choicetrade just laughs and sets it a side cause my orders are to small, or what i dont know there seems to be plenty of volume .
Posted by corndo on :
Ric, How do you estimate your liquidity since your investment appears to be so large? (9000 can buy alot here in pennyland) Aren't you afraid of having so many shares you can't get out?
Posted by thebluedog on :
Rick,
I know you've made some huge gains on TWOG. Today, alone the stock was up almost 65%. And you're still holding about $12,000 worth. Using your trading philosophy, shouldn't you have sold by now? I believe in the stock. I've taken some gains, but am still holding free shares. Do you ever sell your investment and hold free shares? Just curious Rick. I appreciate your posts and respect your trading style.
Le Bleu Dogge
Posted by buying on :
good strategy in writing getting out while someone is getting in. Pump and dump is only good if enough buyers get a peice of the action and think they make it unfortunately most don't. Most lose, and we know this from experience ,it takes too much pushing for a diluted stock and I'm happy to hear someone is banking but the % is low for the ones making. Pink companies are the makers and they dilute their stock to oblivious proportions before RS. Most cry but hope will never die just your $$$.
Posted by buying on :
in and out fast is the name of the game I guess ric, I learned the hard way to wait till its over and my $$ would die with my hope. Skillful trader like you learned this the hard way also for thats why your still here. You sell I buy i lose you win . News traders know the trick and play same stocks over and over again because its addicting to losers just as the winners. We all want the same thing just how we get it is the skill that is aquired only by fast pacers and movers ,sellers and buyers. Optimists hope and lose Pesimists know therefore win. I'm glad i got it Posted by rickpic on :
bluedog
You ask a very good question about my TWOG investment! I am finding this stock to be a small exception to my rule of, in and out with the bank, and as a matter of fact I'm still buying it, or I was yesterday anyhow.
Most OB and PK stocks have small assets $.00 to $50m or so. They run due to news primarily, but also run on what is called momo or group buying. The latter (group buying) I want no part of as way to many people get hurt as these players play them. News is what I play, because its fast paced and even though I get out as the PPS is rising, those who are buying as I get out still have an opportunity to make a profit, or hold as they choose.
TWOG has huge assets about to be released. I'm in at a low level with 85% of my investment having been at .007 and .0075 however I am adding at .011 and .012 My reason why is there is still more news coming. The primary news is that of the name of the major player who is holding the 50% stake in the oil and gas field. This 175 million barrel proven reserve is the largest there is in the OB or PK market and TWOG has 20% or 35m barrels and 36m cm of gas out of the deal. This deal is bigger than BTSI's deal with NORD and look at the PPS and the run they had! Then look at the O/S of both companies BTSI/TWOG TWOG is 80 million and BTSI is 200 million+. I like the investment in BTSI so why would I not like an investment in a company with more oil/gas and less O/S.
The investment I have in TWOG in this account totals $5786.00 and is valued at $10.300.00 leaving me cash on hand also that equals more than I started with at the begining of last month here. I have more shares of TWOG, but they are elsewhere and have also almost doubled in value.
Its very risky playing OB and PK stocks for even a few days, but this one has not stopped gaining since I started buying it, and that is why I'm still in it, I guess! That and the huge value I see that has gone unrecognized by the greater market so far! Ahead of the crowd I was on this one and ahead of them I believe I still am!
Cheers Rick
[ October 15, 2005, 07:55: Message edited by: rickpic ]
Posted by thebluedog on :
Rick,
Thanks for your response. Go TWOG!
Posted by trailster on :
Feeling smug as a bug with 100k at .007
Posted by Andreas on :
I did a calculation with Ric's scenario.
Start capital: $500 Trading fees for the day: $20 Daily average gain: 10% 100 Trading Days
Is is an incredible big amount that could be reached.
But again, it is just a spreadsheet and simple maths.
Sounds too good to be true? Well, good question. Looking at it, it seems to be a process that makes sense. And we all know, with the right DD before spending the daily amount, 10% should be a very realistic gain.
The posting system messes up the column width a bit, but you get the idea. If anyone is interested in the actual Excel Spreadsheet, I will be happy to email it.
[ October 16, 2005, 12:18: Message edited by: Andreas ]
Posted by Slippery Wing on :
The key to this system is minimizing your losers. Get out quick if it starts to go down.
And get out early, too. Remember, sell when it's on it's way up, as there are still buyers at that time. If you wait for it to peak, there might not be anyone to buy your shares!
-Slip
Posted by rickpic on :
By day 60 you have pretty much eft the penny market and are headed for the big board to get the ten % daily!
5 stocks with 2% gains also equals the daily goal!
Posted by Andreas on :
Correct, Ric.
The 'problem' with my calculation is that when you invest the daily amount in only 1 stock - especially penny stock - there will be too many shares in the portfolio to get them all sold.
Therefore your remark "5 stocks with 2% gains...." is absolutely a good strategy.
Posted by Elia on :
Rick,
Still wondering about liquidity, do you throw in your whole total into the mix or do you cap yourself? By that I mean - are you putting 10k into a news runner, or looking for 5 runners at 2k each?
Posted by cbrf2 on :
are u seeing any type of problems with buying, i mean 10k purchase really spikes the charts if its a penny, so/have u seen any problems with the mms pushing down when it does? Obv. not, but what is ur input on that? Btw, good job!
Posted by rickpic on :
sometimes all in one stock, sometimes in several and sometimes not all in at all. Many PR will push a stock 20-30-50% pretty fast and some even higher, so while the principal is based on 10% that is not always the case. The whole idea here was to show to all of you just what 10% daily compound increases inyour investment could be. The reason I started the topic in the first place was, because many go for the gold on every stock they play and get stuck waiting for the gold that may or may not ever come. Taking short money at a lower percentage and moving your money to the next hot stock pays better in the long run, as has been shown here in this topic!
Posted by jbill on :
ric---wouldn't you have to start with more than $500,to compensate for the settled funds rule, to trade every day?
Posted by texvet4 on :
jbill, you don't have to trade everyday. In an earlier post, ric said he was making about 2 trades a week with that account.
Posted by bmaxingout on :
quote:Originally posted by jbill: ric---wouldn't you have to start with more than $500,to compensate for the settled funds rule, to trade every day?
if youre approved for margin your money is settled as soon as the trade is compleat
Posted by johnny14511 on :
hey ric have you ever tried scottrade?
if so wich one yout think has a better execution basis that might sell faster?
Posted by glenngsxr on :
my scottrade is very quick at both buys and sells. I have NEVER waited more than about ten minutes for a trade ot be executed. Also, they are forgiving on the daytrading rules.
Posted by Aleks on :
I have freaking TD Waterhouse, I live in Canada Thanks for all of the info Ric
Posted by WarpedMind on :
rickpic,
as a newbie, I THANK YOU for the awesome advice you're giving here... please continue to add tips as you come up with them. Us newbs really appreciate it!!! (Plus it gives us motivation to keep learning.)
Posted by Aleks on :
RickPic,
ok, I have been doing some research. I go to the otc news on stockhouse....
I read for example:
ABC company releases record profits for third quarter.... and yet, i check for the day and their stock went down 3 cents....
or,,,
XYZ company approved for NASA venture... and their stock down 5 pennies????
Can you explain some of my worries?
hehehe
Thanks rick.
Posted by treemoney on :
Im not rickpick but I can answer your question. Because those headlines were already likely known weeks before they were released. For example, companies usually give some inclination of what they expect there earnings to be months before. So months ago that stock probably went up and then when the earnings actually did what was expected people sold. The approved for nasa venture could have had prior press releases saying the planning of whatever was going on so people sold when it actually was approved. Or they could be expecting 100 percent better earnings and only do 80. Even though they still did a record 3rd quarter earnings that would be negative since it didnt live up to expectations. Basically if it isnt new news it may not be good. If the headline said 3rd quarter earnings were 100 percent better than expected that would probably make the stock go up.
Posted by rickpic on :
Good explanation treemoney! I seldom buy on earning reports, due to the built in factor. I buy on the addition of assets ie: XYZ buys ABC. This week has been very flat, and there has been no real big news in the penny market to speak of at all. The big one is coming though and I'll be waiting! Good Luck All!
Posted by Aleks on :
Thanks for the great explanation guys.
So... Stay away from Earnings, run after the big contracts.
Posted by WarpedMind on :
What about bids, etc? For example, XYZ bids on 50 million dollar contract. I'd assume this is a waste of PR since a bid doesn't mean it's going to be a bid that is won. Am I right or wrong in my thinking?
Posted by Thorn on :
quote:Originally posted by Andreas: I did a calculation with Ric's scenario.
Start capital: $500 Trading fees for the day: $20 Daily average gain: 10% 100 Trading Days
Is is an incredible big amount that could be reached.
But again, it is just a spreadsheet and simple maths.
Sounds too good to be true? Well, good question. Looking at it, it seems to be a process that makes sense. And we all know, with the right DD before spending the daily amount, 10% should be a very realistic gain.
The posting system messes up the column width a bit, but you get the idea. If anyone is interested in the actual Excel Spreadsheet, I will be happy to email it.
---------------------------------------- Day Start $ End $ Gain $ Fee $ Net Profit $ Accumulated net profit $ 1 500 550 50 20 30 30 ... 100 3,758,549 4,134,404 375,855 20 375,835 4,133,884
Realistically, you aren't going to be able to invest that kind of money to get those results, just because it's too large a sum to play on a penny. Still, a small portion of that would be great. Posted by Aleks on :
yeah, thats true, you would not be able to play that much in the pennies, but when you think about it, you can still play a lot of money compared to 500 to 3,000 dollars as most of us do..
Posted by BuyTex on :
Odd coincidence: rickpic posted the "20% rollover" gambit about the same time I was mulling possibilities for different trading styles--I decided a friendly "game" or "contest" might be fun...
My idea was for everyone who wanted to allot $300 to the "contest," then see who could drive it the highest by aiming for 20% return, then re-playing the entire gain, then repeating...
Anybody think that would be fun? We'd have to start a thread for contestants, obviously...
also (re-reading the thread) I ran a table something like Andrea's, but I ran it on 20% return--but left out "days"--in other words, whatever your frequency is...it *could* be days, it *could* be weeks--could be months...
I'm thinking weeks is more realistic than days, but prolly still fun for an on-board game...
Posted by Livinonklendathu on :
I'm in Tex - fire it up
Posted by johnny14511 on :
ok tex
Posted by BuyTex on :
lol--thas cool, y'all.
Waddya think we should call it?
"The $300 play" or the "20% Club" ?
could be fun...
one caveat: I can only post after/before hours right now...covered up with work at the moment...
Posted by Livinonklendathu on :
"The 300" Posted by johnny14511 on :
lets really get this started
make a thread explainnig how it works
so others can get interested
after we have enough well star it
Posted by johnny14511 on :
or the 300 to 3000
Posted by BuyTex on :
started, lol...
check the "club" thread--feel free to suggest ideas...this could be big fun
Posted by Goldbar on :
ric
can you advise a trader to go with that is faster or more efficient? or are they all the same with the exception of the trade fees? they all tell you that they will pass the orders in the order they come with no descrimination. but it seems aside from the simple math and good advice and DD that the most difficult part is getting your order to pass.
Posted by rickpic on :
Goldbar
There all pretty much the same with the excepition of fee and features that any brocker my offer with you trading account!
By the way all! That $740 dollar start is now! $12,750,00 and headed for a 2000% gain Posted by permanentjaun on :
rickpic you have a pm - Matt
Posted by blueranger on :
good post lets keep it going...
Posted by jmichael7 on :
..got an idea! let's not talk about it..Let's Do It! here's my 'PM' for all the world to see...
tied of play'n..'Show Me Da $$$Mooonney$$$' hhaha
[ October 25, 2005, 21:13: Message edited by: jmichael7 ]
Posted by tic_toc on :
Only my input, and I'm not saying no short term gains, but for me FCDH is itching for a R/S...
Estimated Market Cap: Not Available Authorized Shares: 500,000,000,000 as of 2005-03-21 Float: 560,000 as of 2005-03-21 Number of Shareholders of Record: 2,600 as of 2005-03-21
Current Capital Change: shs decreased by 1 for 10000 split Ex-Date: Record Date: Pay Date: 2005-03-21
Traded today 73,704,742....
Posted by tic_toc on :
but chart does look good if thats any consolation
Posted by usasail on :
Hey RickPic do you think ADOT will make a come back....and have you heard from ChicagoJoe at all? Thanks for this thread!! Posted by imakmony2005 on :
rick, My dog is sick can you help??? No ,but man thats a great post and i know the system works, but you do have to get up early its never perfect. May your picks all turn green. thanks money.
Posted by trader_adam on :
Rick- So you read the news after hours and before open, make your picks for that day... and then are you in at open with your choices? When do you usually bail?
Posted by rickpic on :
I bail when its green, I'm not a Vetranarian! and no I don't like ADOT at this time!
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