posted
Purl, I wrote to you a couple of weeks ago asking for this kind of advice, but never got it. Please keep it coming. What are some max and min, amounts to invest? Thanks for taken the time, much apprieciated.
posted
Sorry, Cassity, somehow I missed your request.
Minimum and Maximum, this is for you to decide. Only you know how much money you can afford to risk. Guideline is risk no more money than you are willing to flush down a toilet, seriously.
Keep fifty percent of your brokerage money in cash. Never violate this rule. Should you fall below fifty percent liquidity, start selling and taking profits.
Never have more than fifty percent of your money tied up in stocks. Follow this rule and you will be forced to play hard and to lower your risks by moving in and out of stocks very quickly.
Your plan to profit should _never_ be based on how much money to use. Your plan should _always_ be based on how much percentage profit you want to earn.
This will force you to carefully research any given stock to estimate what you believe will be the percentage profit potential.
Set an expected percentage profit of ten percent over no more than thirty days, less days is better.
I do not care if you make ten dollars or ten-thousand dollars, as long as you work at a goal of a ten percent profit in a short time.
Small frequent profits add up in a hurry.
At five (5) percent profit profit margin, if you consistently earn five percent month-over-month, you can turn one-thousand dollars into an easy one-hundred-thousand dollars.
Why this works is you roll your profits over into your cash. Each time you add profits, you have greater buying power. With greater buying power, your five percent profit earns a greater amount of dollar value, each profit.
There you are. At a consistent earnings of only five percent, in only ten trades you have actually earned almost seventy-five (75) percent on your original one-thousand dollars.
You can understand when you approach twenty trades, fifty trades, you are up a very significant amount, on only five percent earnings in profits.
In a year, you _can_ turn 1,000 into 100,000 by playing percentages, not dollar amounts.
Imagine now actually earning ten percent per every trade you make. Big Bucks.
This will not happen in reality, but you can come very close to this goal by investing a lot, a way lot of time into good research and good decision making. No reason why you cannot more than double your money each year.
With this year's really bad, really REALLY bad market conditions, the safe money is in very small, very frequent profits, for penny stocks.
Long term value stocks are fine, but there is no need to buy those right now. Prices are not about to change anytime soon. Smart traders are working hard at earning small profits on a very regular basis.
Again, if you earn ten bucks this day then earn fifty bucks the next, then another ten bucks, you will have my compliments; small profits become big profits if you carefully play your cards.
That is how you should be playing the markets for current conditions; quick in and out for consistent small profits.
posted
For a little more info showing a trading pattern on "VFIN"--------> go to search feature and type in VFIN....Wallace, blue, and Purl have this thing nailed down.....
Date of post-----> April 01/05
Wallace was very good at DD he once was a SEC Dept. manager.
I play the stock occasionally as well.... The stock can be very boring for long periods of time, immediately put in your pre-determined sell order after purchase..
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posted
"The stock can be very boring for long periods of time, immediately put in your pre-determined sell order after purchase."
Yes, VFIN, very boring. Long waits, sometimes, between profit, but profit always comes around. This one is a fairly safe play. Slow movers, low volume, fairly decent companies, are often more safe penny plays.
There is NO safety in penny plays, but some are more safe than others. These "safe" stocks are the stocks I am playing now in current markets.
I do have a lot more plays but those are high risk day trading stocks. Jo should NOT be playing those, nor playing pump and dump scams.
posted
whale, me is a runing thru me old stocks....
will have somemore to throw out here....
NAVI was a fluke! How I found the thing was bee-zarr--------> me was scrambling words around and started coming up with stock symbols..Boredom waiting for L2'S to get a move on can be productive! LOL
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posted
Last one, for tonight, I think. I am pulling these out of my head which is difficult considering how much fat is between my ears.
CNCN, this one periodically jumps, on news, from .15 / .16 up to .22 to .25 per. I would sell this one at .21 to be sure to lock in profits. CNCN is very volatile when news comes out and plays only last one day, maybe two days but usually not.
A fairly predictable pattern is developing for CNCN. Challenge is predicting when news will be released and when to jump in. Sometimes, if after or before market news, you can jump in first thing in the morning, about two cents to three cents above previous close. You have to watch very closely during the day and jump out around .21 to .24 per, without fail.
When CNCN dips to .14 to .15 I usually buy some, maybe fifty-thousand to a hundred-thousand shares. Do not want to buy too much because you might not be able to unload all those shares. I think my last buy was Thursday or Friday of last week.
Chances are I will have to sit on this one a month, maybe two months before another up spike.
For readers who have not figured this out yet, many of us are playing anywhere from five to ten stocks, at a time. We are day trading several stocks at once, or working a handful over a few days, maybe a week. We are making a lot of trades for, again, small profits.
Worst you could do now is play those under .10 board stocks. Bad news all around. Your money is tied up much too long for current conditions. These bad markets dictate you keep your money churning daily, if not hourly; fast in and out.
Do not allow your money to sit and do nothing in those cheap pump and dump stocks. You will lose money. Buyers are absent from these bad markets; very few are playing those scam stocks. Good traders are moving shares very fast, as fast as possible to reduce capital exposure risk.
People will argue this point. Another bad move is riding "free shares" after taking profits. Darn people, take _all_ of your profits, never ride free shares. Those free shares are NOT free. Those shares are your profits sitting there doing nothing and at risk of being lost. Never sell only part of your shares for penny stocks. Divest completely and put your money back to work.
Amazes me people think "free shares" are free. Again, they are NOT free; that is your _money_ sitting there.
Why am I up so late on a Sunday instead of in bed with my husband enjoying, well, hmm, you know?
Two reasons, we already did that down at the pool late today and I am researching stocks for tomorrow and this coming week. My husband is snoring not more than five feet from me.
What are you doing right now? Watching television or sleeping? You should be researching stocks if you are to be successful.
Those not spending hours and hours researching stocks, will always be losers.
posted
What is with you and the under .10 board...you have some personal vendetta? I don't daytrade since I only have a margin account not with 25k and investing 1k into each penny in the past week and a half has made me $784...all from the under .10 board. Sorry Purl, they may be pump and dump, but lots of money to be made there
-------------------- Disclaimer: Not accountable for anything I say
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posted
I agree the .10 cent board might be hard to handle for a newbie. Once you have some experiecnce, the .10 cent board is extremely easy to play with those stocks. Just wait for a hot PR or a stock with a lot of momo, and get in and out. I always get out earlier than most, while it's still rising. And only every once in a while I hold over night, when big news is expected. The last time I did was for XKEM, and sold the day of approval.
-------------------- Insanity: doing the same thing over and over again and expecting different results
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quote: Jo, I hope you are considering my previous advice.
Yes, I am. I've been writing all the suggestions down. I especially appreciate the post about how to take small profits, percentagewise. If I had done this to begin with, I wouldn't be in this mess. I actually started out doing that, setting my sells for a 10% profit, but then I fell into these fast movers like NDOL, XKEM, etc, watched my portfolio skyrocket, got greedy (why sell at 10% profit when you can make 300%, I thought). Then got stupid and watched the profits fall back down.
I don't have the liquid cash right now to do any of the plays you suggested right now, so I am going to play a couple of them on paper, while I wait out some of my GTC sells to come through. Even with losses on some of those, I will at least have some cash again.
You will be happy to know that I have not opened any new p&d threads in the under .10 board! LOL! But I have checked out the under .10 board for stocks I am already in.
I also have a job interview today! Maybe I can earn back some of my losses working for the man.
Jo
-------------------- "Great Day for Up!"....Dr. Seuss
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This one will move up to 1.50 per share in one to three weeks. The next 10Q will move this up to 1.75 share, around there. Next 10Q is due very shortly.
NWD prices are down because amateur traders are not able to understand the last 10Q and the reason for reported single quarter losses in a very long time.
I've been watching this one this morning (paper trading). I paper-bought at 1.36, now it is 1.39. The volume shows 7,000. Can you help me understand volume as it relates to being able to sell a stock. I thought that a low volume such as this would make it not a good choice.
My paper-sell for this one is $1.48
Jo
-------------------- "Great Day for Up!"....Dr. Seuss
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posted
"I've been watching this one this morning (paper trading). I paper-bought at 1.36, now it is 1.39. The volume shows 7,000. Can you help me understand volume as it relates to being able to sell a stock. I thought that a low volume such as this would make it not a good choice.
My paper-sell for this one is $1.48"
Jo, you have highlighted an interesting exception to this rule about not playing low volume stocks.
General guideline is plays stocks which have an average daily volume of fifty-thousand to one-hundred-thousand, maybe a little more if you hold a lot of shares.
NWD, historically, displays low volume between filings of 10Q reports. Just before and after a 10Q filing, or on good news, volume explodes.
There are a lot of people vested in NWD and even more watching NWD. When some company event takes place, volume will skyrocket.
This is truly an exception. Often low volume will push prices lower making for good buying chances. However, you have to be careful to research volume history and pattern. Some stocks _always_ have low volume which is the type of which you speak, with good correctness.
True low volume stocks, you are right. Those you want to avoid. This is not so much because there is not potential for profit. It is you have a hard time unloading your shares, at a time you want to unload; no buyers.
Have fun with NWD. I predict you will paper profit more than you already have.
Paper trading is great. I still do this on a very regular basis to test myself and to learn better. Keep doing this because paper trading is an excellent learning tool, for all traders regardless of skill level.
quote:Originally posted by Purl Gurl: SUWN buy at .90 / .94 sell at 1.00
Purl Gurl
Purl looks loke this one went south...would you still suggest to buy it at these levels (.78) and sell at 1.00?
would be a good idea to wait IMO.. filled some old gaps from february times today.. one more left.. might never fill.. look for 0.62-0.64 around 50 day MACD for safe reentry!!!!
-------------------- All my posts are based on my own opinions and not to be taken as buy/sell recommendations.
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Ten, I find no news nor SEC filings which explain this sudden crash. Appears, on face value, nothing has changed.
I will be watching close, thinking about buying some. I would expect prices to recover quickly but this is far from a guarantee. Something has happened which is not visible to us out here.
Lots of explanations but none we can verify with information available.
posted
would somebody please sell their VFIN to me at me bid. is begging ' BOGART" Here me go again, this stock can be so boring sometimes that waiting for fish to start jumping outa the tub is more exciting....
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posted
Jo, mortgage your house and your kids' future and buy FRPT. It is, and will be, the greatest stock pick of the century. Nobody, has or will, have 1 bad thing to say about. Nobody. People just aren't aware of the company.
And if you are going to listen to people here, listen to those who post the LEAST, not these folks who like the sound of their voice and post novel-like posts over and over and over... people like Malloy. The man is a genius. Prdponce too.
Oh, and do check other sites! That way, you get the WHOLE picture of what people are saying about a stock. If people are pumping here, you'll find the bashers on Ihub or HSM. That way you find if a stock is being pumped somewhere, or if others have good knowledge of it.
-------------------- Stick with Repo's plan in '07 - FRPT/DKAM!
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posted
Ten, behavior of SUWN today represents the really exciting part of trading stocks.
We know this crash should not have happened yet there it is. We also see great potential for profit and are somewhat afraid to take a chance, wisely so.
Clearly something changed trader perception very quickly. The excitement here is SUWN, today, has become a roll of the dice, only.
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