posted
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...
Posts: 1070 | From: louisville,ky,usa | Registered: Oct 2004
| IP: Logged |
<golfman>
unregistered
posted
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.
IP: Logged |
posted
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..
Posts: 1070 | From: louisville,ky,usa | Registered: Oct 2004
| IP: Logged |
posted
if you sell over 70 and buy when hit 50 you will always make money..RSI
Posts: 1070 | From: louisville,ky,usa | Registered: Oct 2004
| IP: Logged |
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 ...
-------------------- Let the world change you... And you can change the world.
Ernesto "Che" Guevara de la Serna Posts: 4669 | Registered: Mar 2004
| IP: Logged |
posted
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...
Posts: 1070 | From: louisville,ky,usa | Registered: Oct 2004
| IP: Logged |
posted
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...
Posts: 1070 | From: louisville,ky,usa | Registered: Oct 2004
| IP: Logged |
posted
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..
Posts: 1070 | From: louisville,ky,usa | Registered: Oct 2004
| IP: Logged |
posted
mlxo will play but sell it when the rsi touches 50.. notice hit it cycles between 30 to 50..
Posts: 1070 | From: louisville,ky,usa | Registered: Oct 2004
| IP: Logged |
posted
that's my plan adsx is interesting. but what about stocks like BOOM where it keeps going and going.
Posts: 1421 | From: USA | Registered: Dec 2004
| IP: Logged |
posted
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.
Posts: 1070 | From: louisville,ky,usa | Registered: Oct 2004
| IP: Logged |
posted
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?
Posts: 1421 | From: USA | Registered: Dec 2004
| IP: Logged |
posted
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.
Posts: 1070 | From: louisville,ky,usa | Registered: Oct 2004
| IP: Logged |
posted
thanxs blue! thank god for firefox too. this tab browsing is a must to have in stock trading
Posts: 1421 | From: USA | Registered: Dec 2004
| IP: Logged |
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
Posts: 1070 | From: louisville,ky,usa | Registered: Oct 2004
| IP: Logged |
posted
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.
Posts: 5 | Registered: Mar 2005
| IP: Logged |
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
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?
Posts: 70 | From: west end of Michigan's upper peninsula | Registered: Jan 2005
| IP: Logged |
posted
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!
Posts: 70 | From: west end of Michigan's upper peninsula | Registered: Jan 2005
| IP: Logged |
posted
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" ??
Posts: 175 | From: Norwalk, CT | Registered: Apr 2005
| IP: Logged |
posted
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.
Posts: 10729 | From: oregon | Registered: Feb 2005
| IP: Logged |