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SCinFL
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That I wished someone would have told me when I was a "newbie". Course I still am a newbie...lol...but have learned a few things.
There are ALOT of P&D schemes and stock groups out to "pump" you into buying on their sell. I would like to pass along a few things I have been taught that should help to hedge your risk of being stuck in a penny death spiral.
Never chase a stock...there are 10 for every 1 you are chasing.
Set your buy and forget about it, most of the time it will come to you.
Watch the stock to make sure it is not being "run" by a momo group(unless you got in before the momo) for a few days, if not buy at the lowest possible point....if it is coming off of a "run" it may settle lower than the start...so try to buy at bottom.
Never buy a stock that is known for dilution, reverse splits, or is shady in general.
The lower the oustanding shares, the better. I love finding stocks with 30mil or less o/s....because when they run, it goes fast.
I never buy any stock over 200mil o/s...and prefer to stay below 100mil o/s.
Look for decent volume, over 500k....or more is preferable. You want to see low volume=low price, high volume=higher price.
If you feel that the stock is a long term hold, when it doubles free out...for instance sell 75%, keep 25% for free.
I do not recommend holding ANY pennystock for a longish period unless they are free shares....never know in pennyland.
Finally patience, buy it for the right price...set your sell...and be a little patient...it will pay off.

These are mainly for people who are interested in more long term holds....for daytrading or "scalping" these may not apply.


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ChrisNC
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Nice post Sara how are you? Is everyone gone these days thought I was the only one to take the long vaction. I quit my job and declined the offer on the other so Im just lurking around looking at investments now. We need another ONEV type run dont think this one below will do it that fast but would be something to get a few frees on. I found the solution to landlording rent to own and contract the repairs and everything to tenent plus you get about 5x the return just have to wait 20 to 30 years lol.

Have you glanced at HLNR lately I support it alot maybe a mistake but check out the finances and news coming end of october a new club in NY. Has a history of spiking and dropping the old 2.00 target is gone by a .50 target due to purchasing that resturant chain with shares. Umm check it out and see what you think.

------------------
Einsteins 8th wonder of the world was the power of multiplication


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SCinFL
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Hey Chris,
Good to see you back again. I think everybody on this thread was feeling deserted here ....lol
Maybe people will start posting again.
I am heavy into UGHO right now, but will look at that stock later tonight. Glad to see things are going good for you.
I am not working right now either, I figure give this a year and if it doesn't work I will just go back to the old grind..lol

Sarah


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SCinFL
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Check out UGHO Chris, it exploded last week and is not done IMO.
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Lutalo
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All my money is tied up right now so I"m kinda out of the game at the moment. Anyways Nice seeing you again.
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SCinFL
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Hi Lutalo,
Good to see you again too. Hope you've been doing great.

Sarah


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Lutalo
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Been doing so so... going to file for divorce on some no movers if they dont do anything soon though. Not FRCP though, I'm happily married to that one
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SCinFL
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LOL...I know what you mean...but FRCP time may just be coming. BTW, whoever gets elected the home security stocks should still do good. I am waitiing for BSIO to finish some dilution(will still be around 100mil o/s) and then am watching to get in near .05 if possible. I think there may be a few good things coming to them. Also rumour is MRKL will have more contract news next week....may put it permanently over 1.00.

Sarah


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SCinFL
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Lutelo,
FRCP has been confirmed a buy this week by American Bulls....let's hope we see some upside from this one FINALLY!!

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SCinFL
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Some of the most IMPORTANT rules follow...forgot these earlier.
ALWAYS do your own DD...
If you're a newbie, READ everything you can about your type of trading. If you want to daytrade read every book you can find. If you want invest, read related books. There is a WORLD of difference between investing and trading.

LEARN to read charts, they are right. http://stockcharts.com/def/servlet/SC.web ?c=ipi%2cuu%5bh%2ca%5ddaclyyay%5bdb%5d%5bpb50%21b200%21f%5d%5bvc60%5d%5biUc20%21Lg%5d&pref=G

Bookmark above, you only need to change symbol to use.


Learn to check for reverse splits daily on any stock you own, do not rely on a message board FOR anything other than the initial tip. http:www.nasdaq.com/asp/quotes_sec.asp?

It is up to you to follow through and decide to invest.

If you do your DD and are still not positive about what you are seeing, you can go to....
www.stockscores.com
www.investorguide.com

type in symbol and it will give you buy and sell indicators.

Hope this helps...Laziness WILL cost you...

To stay on top of news, you can go to smallcapcenter.com and put in for email alerts, they will ask for the symbols you want news on. I usually have news about everyday in my email box on stocks that I own.

[This message has been edited by SCinFL (edited October 03, 2004).]

[This message has been edited by SCinFL (edited October 05, 2004).]


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lostadventurer
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Hi Sarah et al,

I have been reading your posts for a while (yourself, Bob Frey, bingo, Jeremy, offshoretrader, and ChrisNC are my personal favorites)...saved some funds...read lots of your suggested books...traded for months on paper..and am finally ready to take the plunge into the real world of trading.

First though - thanks so much for making me feel like I don't have to be a corporate slave. I'm a scientist by day and a hired sailor on the weekends - so between my degrees that taught me nothing about real life and your knowledge of the market - we might have the beginnings of some critical mass here!

I'm curious where to open an account - lots of confusing traffic out there - what do you guys use? I especially need trailing stops - I'm sent all over at a moment's notice and sometimes go days without internet or phone access.

Thanks again - and you'll be hearing from me a lot more once I get spooled up (just registered today)

Lee


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SCinFL
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HI Lost Adventurer,
Glad to have you join us. As for a broker, I don't recommend Scottrade (who I had til today actually), they are too expensive with otcbb stocks. I tried out Choicetrade, and was impressed with the array of extras there. 5.00 for all trades, and they have trailing stops. They have free bill pay and also have check writing...which you may not need now...but here's hoping
If you have a min of 5k you could use Freetrade, a no frills broker who gives you 20 free trades per month. The website says you should be comfortable with trading online to use them. I don't remember seeing trailing stops there, but not sure.
Choicetrade offers a demo so you can get a good idea before opening the account.

Hope this helps,
Sarah

[This message has been edited by SCinFL (edited October 04, 2004).]


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SCinFL
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A write up I found on another board, about the Canadian exchange and OTCBB....a must read for anyone investing in otcbb or Canadian co's listed on otcbb.
http://www.canadianbusiness.com/features/article.jsp?content=20040913_61763_61763

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lostadventurer
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Thanks Sarah!

I really appreciate your insight on this. I was really looking hard at scottrade and called ameritrade to talk with a live broker before they had my account - and frankly just wasn't impressed with either. I checked out choicetrade and freetrade - I'll be opening an account with choicetrade for the time being. Many thanks.

The article about otcbb was quite hectic - was unfamiliar with it - now I simply plan on distancing myself from it.

It all helps - thank you very much for your time and kindness.

Lee


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SCinFL
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Hi Lee,
Don't let the otcbb article scare you away, but do always invest with caution. That is why I posted it, so that others can see what could be going on behind the scenes.
One poster on the other threads, Glassman, is pretty good at picking long term type pennies. Check out his posts, and if you find one you like, research and buy as low as you can....but only if it has less than 200 mil o/s
Pennies can be very exciting when they are flying, but you want to play them right or you may be stuck with them for awhile....I know...lol
Just start slow, patience is another important aspect of the stock market.

Sarah


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Marva18
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Sarah,
Great article on the OTCBB, hopefully we have not invested in scams but who knows.
Look at Enron, Tyco, NT, Quest, etc. on the big boards so you never know.

I have been a passive investor for years but 6 months ago I decided to take the plunge and be more active. Its fun creating your own mutual fund and waiting for the day's PR's to make you rich (still waiting).

I like small, unique, useful idea companies that I can get in on before the big runup.
Its amazing after watching the last few months how a company will have a huge runup on hype and euphoria (also volume building before the news) before they actually have a product - like QBID, IOTN, LENF, IPIX, etc. - and I wish I knew that then to make play and to get out.
I like your ideas about freeing out shares.
It seems when a company becomes a real company with a product and reports sales it will still go up but not percentage-wise as the initial hype.


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SCinFL
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True Marv,
I saw on another board earlier that a guy had bought LENF when it was a shell for .01, 50,000 shares. He freed out all but 10,000 cause his friend said keep it, will be 20.00 stock one day. If he's smart he'll keep cause it could be 40.00 stock one day...lol
I like that idea, don't you?

Sarah


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jimbo
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Sarah,

You forgot one rule...
One I think is most important.

NEVER FALL IN LOVE WITH A STOCK.

Do as I say, not as I do... ;o)

Missed this board.

------------------

Jimbo...


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SCinFL
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True Jimbo...and if you "must" marry it cause you think it's the next best thing since sliced bread, free some shares and then you won't be losing your own money on it if it turns out to be not so great.

Sarah


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ChrisNC
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how ya been jimbo
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MrBill
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Here are a few I've picked up from some one!
TRADING TIPS:

1) Never buy with a market order, only limit order.
Market Makers (MM's) will bid a stock up just to take your money at a
higher price. Same with selling. The exception is selling into a rally.

2) Don't chase. Its usually best to buy these stocks at the bottom
andĘbe patient.

3) Be leery of any company with more than 50 million shares
outstanding. There is always the possibility of a reverse split.

4) Be leery of any company financing with convertible debentures
or bridge loans.

5) Be leery of any company that is not fully reporting.

6) Volume precedes price

7) Never try to catch a falling knife

8) Level II - When a stock is dropping you can visually see the MM's
start dropping to the next bid level. If a stock is rising, you can see the
them climbing to a higher ask price.

9) Amateurs control the opening, Pro's control the close.

10) No Matter how dumb I am, there is always someone dumber who
will charge me money for bad advice.
(Howard Anderson, Tech Investor Magazine, Feb 2000)


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jimbo
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Chris, Hi-ya. Been good. Been missing my trades, can't get my orders filled and watch the stock go up and up. But hey, it's still a learning experience right? I have officially past the 1 year mark. Now I start to make money, isn't that the way it works? LOL.

While we are on the subject. I picked up these. I probably got them off of Allstocks to tell you the truth. However, I didn't write them, only try to follow them.

"The Eight Rules of Carney"... From The Ugly Americans by Ben Mezrich

1. Never get into something you can't get out of by the closing bell. Every trade you make, you're looking for the exit point. Always keep your eye on the exit point.
2. Don't ever take anything at face value. Because face value is the biggest lie of any market. Nothing is ever priced at its true worth. The key is to figure out the real, intrinsic value - and get it for much, much less.
3. One minute, you have your feet on the ground and you're moving forward. The next minute, the ground is gone and you're falling. The key is to never land. Keep it in the air as long as you can.
4. You walk into a room with a grenade, and your best-case scenario is walking back out still holding that grenade. Your worst case scenario is that grenade explodes, blowing you into little bloody pieces. The moral of the story: don't make bets with no upside.
5. Don't overthink. If it looks like a duck and quacks like a duck - it's a duck.
6. Fear is a great motivator. Motivation is what it takes to find profit.
7. The first place to look for a solution is within the problem itself.
8. The ends justify the means, but there's only one end that really matters. Ending up on a beach with a bottle of champagne.

I just thought these rules were interesting and a good set to follow for daytrading. Have a good night everyone!

quote:
Originally posted by ChrisNC:
how ya been jimbo

------------------

Jimbo...


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SCinFL
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Hey guys,
I don't get much time to come here and post, am involved in 2 groups now and it keeps me busy. Hopefully this thread will be kept up for awhile to help "newbies" to learn some info. I wished I would've had it when I started.
Please do be careful investing, and best of luck to everybody.

Sarah


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offshoretrader
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Here's one of my rules, never let a winner turn into a loser, a stock that is. I have a huge list of rules I will post later.

offshore


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jimbo
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Please do Offshore, I have followed your post for over a year and a half now. I know if I can benefit from your rules, then at least one more person can. Thanks


quote:
Originally posted by offshoretrader:
Here's one of my rules, never let a winner turn into a loser, a stock that is. I have a huge list of rules I will post later.

offshore


------------------

Jimbo...


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