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Micro Penny Stocks, Penny Stocks Under $0.10 The Next ".0001" Diamond In The Rough"
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Author | Topic: The Next ".0001" Diamond In The Rough" |
dardadog unregistered |
posted February 07, 2004 17:39
There seems to be a large amount of "newer" inexperienced traders here on Allstocks these days. Glad to see so many new, and what appears to be, younger traders out there. I wish I had been smart enough in my late teens and early twenties to invest in my future. I don't consider myself "old" at 43, but when I was that age I considered my future to be next week rather than next decade. On to the point here. Many of the investors here follow my "flyin fast" leads and do in deed make good quick returns on their investments. But I want to bring attention to a very important rule that I'm afraid many may be overlooking. Particularly in the case of "QBID". The rule I am refering to is "Cover Thy Ass". It's fun (and profitable) to latch onto a microcap that takes off like a rocket. But gains on "paper" don't impress the finance officer, and they don't pay off or save for college tuitions. Microcaps are just that for a reason. Something in the companies past has dictated that they are worthless. When they stir, everyone aware becomes excited and begins accumulating shares with the "Beverly Hillbilly's" theme song stuck in their head. Dreamin' and making extravagant shopping lists, walking around with a stupid grin on their face, thinkin' EZ street is the next block up from here. "Danger Will Robinson - Danger"!!!!! Guys.....if it were really this easy, nobody on the planet would work!!! I make this point, and hope many take to heart, because paper gains are just that..."paper". You see how fast the portfolio can increase on one of these wild rides, but believe me, it can shrink faster. The smart investor always, and I mean ALWAYS, keeps this first and foremost in mind. Front And Center. While these microcaps are great to play, a smart investor will always "Play Free". Pick a price at which the stock reaches where you can sell partial holdings and keep a block of shares for free. You then have your initial capital back to re-invest in "new" up and comers, and if the free gem you are riding tanks, you can still get some use out of the shares you own for free. .0001 Certs can be used in place of Charmin next time you are at the grocery store. Chafes a bit, but not as much as it does if your ass is raw from the ol' back door screwin' you just took by having your whole wallet tied up on the dream. I want all to really think about this. More people in the penny game have had this experience become a realization, than have had the "Beverly Hillbilly's" dream come true, I assure you. Just remember, although this seems like a game, the only real game in life belongs to Milton Bradley. Good Luck out there. ------------------ IP: Logged |
robbob Member |
posted February 07, 2004 17:46
DaDog is right, Multiplication is the key ingredient in any successful, profit-making venture. The classic example of the power and principle of multiplication is the stroy of a child asking his father to change his allowance system to the "pennies-a-day" method. "What's that?" asks the father. "Oh, it's simple," his son explains. "You just give me a penny today, two pennies tomorrow, four the next day, and so on. Then we'll start all over again next month." This sounded harmless enough, and the father thought he might even save some allowance money on this deal, so he agreed. Here's what the son would have receive using this principle - $5,368,709.12. An if there were 31 days in the month that the father and son entered into this agreement, the son would have been owed - $10,373,418.24 Something as small and as insignificant as a penny has, by applying the pwer and principle of multiplication, exploded into millions of dollars in one month's time. Ray kroc bought the McDonald Brothers' hamburger stand in San Bernardion, California when they were selling hamburgers for fifteen cents apiece. People drove from all over for a hamburger. They would come from everywhere. Mr. Kroc had to make a decision: He either had to expand the existing business by adding to the building, installing more stoves, hiring new employees, etc., etc., or he said, "I can be smart and build deplicates of what I've got here all over the world. LOOK at McDonald's today. If you gamble with $500 dollars in Vegas and you win $1000, put $500 back in your pocket and never touch it, then you have no worries and only HOPE!!!! IP: Logged |
rajarammx Member |
posted February 07, 2004 17:47
Very good tip...very hard to do...since greed almost always take over....Congrats that you can do it...I am trying... I think QBID has potential...so I divided it in two buy, one which I will daytrade & other which I will keep if news still look positive....I think I have 1m & 900k... As always...thanks for the tip...Dadog GLTA
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Marcidius Member |
posted February 07, 2004 17:55
Great post Dog! Everything you said in there is some awesome advice for us rookies, I will follow that to a 'T' everytime. It will save me bundles of money, and not only that...but also bundles of headaches. GREAT POST! IP: Logged |
Love the Market Member |
posted February 07, 2004 18:13
Good post Da Dog! I believe Uncle Milty ONLY holds free share for the long-er term..... Steve IP: Logged |
power9 Member |
posted February 07, 2004 18:20
Great words of advice Dardog .It is very easy to get swept up in the excitement of the posts and TA done by others but when it is all said and done it is your money on the table. I personally had been sitting on qbid for months anticipating this type of movement and being still new to this I am sure there r others who held even larger positions because they also understand the trend.Until this network is on the air all pr's and contracts are speculative. No doubt this is an entertainment venue who's time appears to have come but it can still get placed on the back burner due to politics.Play it as such and you will stay safe. Thank you Dog for being a head of calm amidst all the hysteria and thank you again for all your posts. Ty IP: Logged |
robbob Member |
posted February 07, 2004 18:20
Always, are woulda, coulda, shoulda's in life, but if I would've have used this principle last year and gotten into TASR at 1000@$3 then my free shares would be worth $150,000. Lessons hard learned, I love FREE Shares, keeps my hair from getting grayer IP: Logged |
VNGNTN1 Member |
posted February 07, 2004 18:29
DA DOG You and I have the same philosophy, but I"m a bit older. Not sure what split you have with pennys and larger stocks. Personally Iv'e done much better with the larger stuff, but the concept is still the same 1-Put the research in, 2-Put the money on the line, 3-Follow the comittment thru. 4-Don't be greedy, 5-Don"t make the same mistake twice. VAN IP: Logged |
Neo Member |
posted February 07, 2004 18:46
Good advice dog I guess the problem becomes when do you sell to recover initial investment. I have to come up with that number before monday for ibzt... any ideas what it might hit IP: Logged |
glassman Member |
posted February 07, 2004 19:32
Neo I looked in my tea leaves and guess what--I had a bag--LOL Sorry Neo--i'm being rude again -- 5 minute chart says sell 14:50 EST fri-- 1 minute chart says-hold and see if up-trend continues--sell immediately if not 10 minute chart says sell now 60 minute chart useles cuz it has a .55$ price on it last week --this happens a lot in pennies they do this- I THINK- to screw up my charts remeber you are only paranoid if they are not really out to get you(r money) [This message has been edited by glassman (edited February 07, 2004).] IP: Logged |
robbob Member |
posted February 07, 2004 19:33
Ok, now that was funny! IP: Logged |
Neo Member |
posted February 07, 2004 20:00
glass no prob... I dont expect to get a real good answer but none the less want to put in a limit in and am trying decide on a number (thats stocks) anyway glass I saw you tell some one recently the name a good book tfor this type of trading but I dont know where it is on the board, I am on my way to barnes and nobles now, what do you recomend. IP: Logged |
glassman Member |
posted February 07, 2004 20:12
quote: OK -a beginner's guide to day trading online by toni turner----good starter All About Technical Analysis by Constance Brown McGraw -Hill Investors Desk referance --must have it IP: Logged |
Neo Member |
posted February 07, 2004 20:15
Its kewl.. I dont wig out so easly... If I didnt think you and the others new a thing or two I wouldnt ask... We all have decisions to make the smart ones use every resorce they have to do so! IP: Logged |
dardadog unregistered |
posted February 07, 2004 20:16
"How To Master The Art Of Bingo". It's much safer. Odds are better too. Don't mean to be a smartass....ok, I do....... but my thoughts on how the Higher Powers That Be, and they do be mind you, is quipped from the late great P.T. BARNUM. Internet has given us a line to the information needed to play in this game. Without it, this game would be very dangerous. You don't have to be smarter than the so-called "Powers That Be". Just smarter than the guy that P.T. BARNUM was aware of. Last one out catches the lights........and holds the bag. Play smart people. ------------------ IP: Logged |
PSU90 Member |
posted February 07, 2004 20:21
Also look for "The Market Makers Edge" by Josh Lukeman. Another goodie IMHO.
quote: IP: Logged |
Neo Member |
posted February 07, 2004 20:24
Art of bingo it is...got it IP: Logged |
Billy Member |
posted February 07, 2004 23:37
Thanks DOG i needed that post Billy IP: Logged |
Bam Bam 17 Member |
posted February 07, 2004 23:53
Ha dog that is a very good post. I am picking up as I go. May God Bless All. quote: IP: Logged |
U4TSAF2 Member |
posted February 08, 2004 00:23
I ABSOLUTELY POSITIVELY DISAGREE WITH YOU 100%. PINKS ARE MONEY (KEYWORD MONEY) STOCKS AND YOUR OPINION IS THAT OF A SEASONED INVESTMENT BROKER WHO IS TRADING NYSE AND MUTUAL FUNDS. THE ABSOLUTE ONLY REASON FOR THE PEOPLE BUYING PINKS IS BECAUSE OF 30%-400% OR MORE GAINS WITHIN MINUTES AND SOMETIMES SECONDS. THE ABSOLUTE ONLY REASON FOR A PINKSHEET STOCK IS REPORTING AND SOME (NOT ALL) COMPANIES WISH NOT TO REPORT AND FOR VERY GOOD REASON. "FLYIN FAST" IS THE WHOLE PINK SHEET MOTO. YOU MENTION QBID WHICH IS A GAY/LESBIAN TELEVISION CHANNEL ABOUT TO HIT THE AIRWAVES THROUGHOUT THE COUNTRY, ALASKA/HAWAII AND PUERTO RICO. QBID IS A HUGE VALUE IN RELATION TO THE GAY/LESBIAN COMMUNITY AND THE UPCOMING STATUS. I BELIEVE SAME-SEX CIVIL MARRIAGES IS NOW LEGAL OR GOING TO BE LEGAL IN ONE STATE. I'M IN NO WAY SUPPORTING THE WHOLE ISSUE BUT I'LL BE THE FIRST TO STEP UP TO THE PLATE AND SEE AN OPPORTUNITY LIKE QBID AND BUY/SELL. QBID HAS $1,500,000 (ONE MILLION FIVE HUNDRED THOUSAND DOLLARS) TRADED IN CASH IN ONE DAY WHILE MOST OF THE PINKS YOU CAN'T BUY BECAUSE YOU WONT BE ABLE TO SELL THEM EVEN IF THEY GO UP 20%. ALL PEOPLE HERE INCLUDING YOURSELF USE THE TERM "DO YOUR OWN DD". WELL IF THIS IS THE CASE WITH PINKIES, THEN YOU CAN'T DO ANY DD BECAUSE THE STOCK IS BASICALLY WORTHLESS SINCE THERE IS NO FINANCIAL REPORTING AND STOCK VALUE IS BASED SOLEY AND ENTIRELY ON FINANCIALS WHICH PINKS REPORT NOTTA! THE ONLY PERSON I SEE PLAYING PINKIES FOR LONG TERM IS ME. I USE THE APPLICABLE PRINCIPALS OF STOCK VALUE AND POTENTIAL WITH REALISTIC EARNING POTENTIAL AND RIDE IT OUT. TO DATE: I'M 100% ACCURATE. FOR THE NEWBIE READING THIS POST: YOU ALREADY KNOW OR HAVE HEARD TO STAY COMPLETELY AWAY FROM PINK SHEET STOCKS. EVERY "TRAINED" BROKER WILL TELL YOU THAT YOU WILL ONLY LOSE YOUR MONEY. IF ALL YOU DO IS THINK INSIDE THE BOX, THEN YOU WILL LOSE ALL YOUR MONEY! IF YOU CAN THINK OUTSIDE THE BOX AND SEE WHAT "COULD-BE" AND BE REALISTIC ABOUT THAT "COULD-BE" THEN THE PINKS ARE FOR YOU. THAT IS THE TRUE BOTTOM LINE. CAN YOU TAKE 10,000 AND FINANCIALLY RETIRE JUST BY 10-30% MOVES ON PINKIES? ABSOLUTELY IT CAN BE DONE. CAN YOU BUILD A NICE WEALTH POSITION, ABSOLUTELY IT CAN BE DONE. CAN YOU FINANCIALLY RETIRE? ABSOLUTELY. THE ANSWERS ARE YES YES AND YES! CAN YOU LOSE ALL YOUR MONEY? YES BUT I'VE YET TO SEE ANYONE LOSE EVERYTHING. NOW THERE IS GOING TO BE REPLIES ABOUT SOMEONE WHO LOST IT ALL, MAYBE JUMPED OFF A BRIDGE BECAUSE OF IT AND YES, THERE ARE SOME OF THOSE IN EVERY CATAGORY. PROBABLY SOME KID SOMEWHERE WHO DIDN'T SELL AS MANY COOKIES AND SHOT HIMSELF. THERE ARE NUMEROUS KNOWLEDGABLE PEOPLE ON THIS BOARD WHO RESEARCH PINKIES VERY WELL; DADOG BEING ONE OF THEM. PEOPLE WHO HAVE BEEN HERE AWHILE KNOW THEIR STUFF AND FEW OF THEM ARE SELLING CRACK TO MAKE ENDS MEET BECAUSE THEY LOST ALL THEIR MONEY. IP: Logged |
DiQuiRiesco Member |
posted February 08, 2004 00:52
U4TSAF2 and Dardadog...I agree with you both....What needs to be adressed is the lack of correct terminology. We are all trading... not investing. The longest among us will hold this company's stock for no more than a year....this is not investing...it is infact trading. Many more, like me, will hold this stock only untill it peaks (or untill I "feel" it has peaked). I have preoblems with this company (QBID) simply because the vast right wing conspiracist inside of me is yelling about things like society and the future of it...however the capitalist pig inside me is quite content with the thousands made this week alone off of this company. My point?....Trade...don't Invest in pinkies. Play the pops and skip the dips. IP: Logged |
ignorantbliss Member |
posted February 08, 2004 02:16
ALL, Here's a great article written by Bill Panetta (Aka Omnitrader) from Investor Hub. Read and heed... I have a profit what should I do now? PROFIT MANAGEMENT: boy this is a rough subject When you have a profit there are so many things running through your head. Your nervous your sweating bullets. You can talk to 10 successful traders and you might get 10 different answers on this subject. And BTW if any TRADERS want share there profit management strategies with us please feel free to do so. This is what this weekend is all about. For me Profit Management is real simple, alot of it depends where I buy the stock. If I am buying near the 5 & 10 moving averages or a stock like PLKC a break of the 200-day moving average those are my favorite and easy to manage.
I can sell everything because I feel it has reach a resistance level that I thought it would not break. HRCT was great example went right to my target of .79-.80 area and slammed right back down. A starbucks play for me. You always hear this one: sell 1/2 when you double your money: Again I am trying to take the emotions out trading and this has done it for me personally. Sell 1/2 when you have profit: what is the theory behind it. Examples: PFCE: bought @ .40 sold 1/2 @.60 What does it accomplish? 1- I locked in a profit Then on the rest of my postion all I have to do is follow my momo guidlines: 5 & 10 day moving averages and 50% rule. The main point of this concept is you always put yourself in a position to have a winning trade. It’s a win win situation for me. I am not an AL DAVIS fan (raiders) but as Al always say's Just win Baby IP: Logged |
ignorantbliss Member |
posted February 08, 2004 02:24
You might be asking from my previous post of Omni's profit management lesson, what is the 50% rule? Here it is..
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shadow Member |
posted February 08, 2004 09:12
Dog - One of the better threads I have seen in a while. Solid Advice... IP: Logged |
dudley Member |
posted February 08, 2004 09:14
I guess I look at it more like Dardadog. My whole trading mindset centers around limiting losses or "covering my ass". Let's say I buy a $1000 position. Since I can't accurately predict the future or kid myself that I can, I have no idea which direction that stock is really going to go. I think it may go up (based on news or chart pattern) but I certainly don't "know". The only thing that I can know, the only certainty that I can bring to this unpredictable chaos of price and volume or supply and demand is that I'm only willing to lose $200 of that $1000. If it drops to $800 I'm out. I was wrong. That's all. Even the best traders are wrong alot. It's part of doing business. It's just the cost of finding stocks that go up. The thing is, if I don't limit my losses when a stock I own goes down and lose my capital, I can't play anymore. Winning stocks take care of themselves---I may play woulda, coulda, shoulda, sold sooner or later in my mind but a winning trade is, by definition, a success and while my mind may be greedy for imagined gains, my bank account is increasing. I like that. IP: Logged |
dardadog unregistered |
posted February 09, 2004 05:58
Just wanted to bring this back up to the forefront in case anyone actually took the weekend off and didn't get a chance to read my ramblings...... ------------------ IP: Logged |
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