posted
are you doing this with $400 to $1000 dollars on each stock or is it more like $10,000 to $30,000 per stock just wondering. i just want to see if it can be done with $500 to $1000 per stock maybe say $400 on 2 differant stocks or will i need more cash to start with.. thanks
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I'll tell you that I started back in April of 03 with $560.00. Never owned stock before in my life. How much I involve in a play now, depends on the stock, the chart, potential and other varibles, not to mention how much cash I have available to play at the time.
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This all depends on what your goals are. If your goal is to ultimately make a living doing this, you may need more. On the other hand, if you plan on just learning how to trade well, $400-500 a trade is a perfect amount.
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Beef, You should start small and split it up amoung various stocks - especially in the beginning. DO your research and make % gains every trade and soon you will be trading more money and more stocks - remember not to get too greedy - take your profit and go on to the next stock. It may pay to keep a certain amount of "free shares" if you feel that the stock may appreciate over the long term (Take your principle back but leave the rest to ride so you have working capital). Invest some time reading the active threads on this board as there are some very savvy investors here who share worthwhile advice. Good Luck
posted
How much money you use will depend on your overall financial picture and your "stomach" for risk. If all you have available to invest is a few thousand dollars, you shouldn't even begin to think about penny stocks. Only invest in the pennies what won't bother you to lose--there are great potentials for reward here, but a whole lot of risk comes with it.
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For most of my penny plays, I like to put 2000-3000 into a stock at a time. If I feel the company is a longer term hold (a month or more) I will sometimes put over 5,000 into one. It all depends.
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I used to trade 5-20,000 but I find it smarter now to trade 500-1200 and buy into more different stocks. Also if I am very carefull to buy at their lows then my 1200 is really 2400 invested.
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diversity is the key to success here. my 38 stock micro cap portfolio is currently broken into 2 parts. a trade section and a "nursery" section. the trade section is composed of large plays that are swing traded. if the stock looks good long i work toward free share positions by playing the beta. when they start to "ripen" i start taking profit and adding to stocks that are down and to the "nursery.
the nursery section is where i study 2-10k positions with a vested interest in them. once i feel i know how they behave i either weed them out or add to them in several trades and they advance to the trade section of my portfolio. i also have several watch lists with no vested interest to see if there is something i want to get into. i miss many of the qbid kind of plays because that isn't my m.o.. stocks that move quickly can often make you feel like a fly on the end of a bull whip.
when my total stock portfolio becomes larger than 30% i look for realestate, or opportunity in my own corporation, and liquidate to keep my investments balanced at 30% stocks.
the question of "how much" has come up many times. i decided to stop posting personal details on the entire microcap portfolio. if you read my individual stock posts you know i am a large position trader by penny standards.
The best thing to do is start with $500 or $1000 and try to make 100% profit on that first pick.
Then take the total sum....$2000 and try to make 100% profit on that...which is $4000.
Then try to make 100% profit on that which is $8000 and so on...
If you do it right you'll be at $100 000 in a year...as long as you don't make any bad decisions...which you will..if you diversify you can minimise those losses... Good luck...
posted
I basically agree with OM I just started in pennys 3 months ago. I find that in order to satisfy the trading fees and what I could make in "larger Cap Stock" a 500,000 share position is necessary in each stock. I noted he had 30 of these I only have accumulated 11. My goal is not to catch him , but to SPIN a mining sector into a winner. I know this board(excepting GLASSMAN) doesn't comment on Precious metals, but I have known for many years that you should have been in these stocks. A good read would be (GOLD CENTRAL) Taylor column today) Gold mining also seems to incorporate Silver ,Copper & those D**M pesky Diamonds. Iv'e had to buy several more "Pieces" to load all my ammunition. VAN
[This message has been edited by VNGNTN1 (edited February 10, 2004).]
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I started by selling 61 shares of my employers stock for a whole $361 on 12/19/03. With an extra $150 out of pocket, I have turned this into $1700. Not bad for a rookie, but a long way to go to fund Ivy league for my two youngsters!
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watch lists are free, so i have almost everything mentioned here and on several other stock sites on lists at one time or another. you can create lists by a certain individual picker, or by industry, or by anything you want. you can sort the lists by clicking at the top of any column, so it is easy to let the lead sink and the cream rise. do you have a streamer? it costs nothing to maintain several 40 stock lists with ameritrade. there are several strategies. reasearch dogs of the dow and use the 30 stock industrial list to make your picks. my lists are diverse, and i generally only discuss stocks i bought as pennies here. the others are boring and remind me of watching grass grow realtime. some bigs are great. look at glw.
watchlists make wonderful centralized research tools. you are a click away from charts, and news is posted very timely. there is one problem, and that is the time it takes to monitor all of this data and the capacity for someone to actually make good decisions when tracking too many. constant weeding and housekeeping is necessary. that is why i found i really needed to pick the ones that i like from the watchlist and take a small position in them to see if they have what it takes. amazing how much more something tells me when it starts adding or subtracting from the bottom line.
sometimes i think the monkey could do as well, but i can't complain. i have done well with penny stocks. diversity is the key.
posted
get em van. i think a sector based portfolio could produce good results under good circumstances. noble metals are traditionally good in uncertain times. that would fit pretty well now. i really am big on diversity. i'm up to 38 microcaps, and i don't include some of the companies that are older than i am, or my own corporation in the discussions here. these stocks are covered by people lots smarter than i am. except mine, ans the board of directors is ms mullet and i. we are the only shareholders and have no intention of going public. it is simpler not to have to answer to anyone.
off to the club.
uncle milty.
quote:Originally posted by VNGNTN1: I basically agree with OM I just started in pennys 3 months ago. I find that in order to satisfy the trading fees and what I could make in "larger Cap Stock" a 500,000 share position is necessary in each stock. I noted he had 30 of these I only have accumulated 11. My goal is not to catch him , but to SPIN a mining sector into a winner. I know this board(excepting GLASSMAN) doesn't comment on Precious metals, but I have known for many years that you should have been in these stocks. A good read would be (GOLD CENTRAL) Taylor column today) Gold mining also seems to incorporate Silver ,Copper & those D**M pesky Diamonds. Iv'e had to buy several more "Pieces" to load all my ammunition. VAN
[This message has been edited by VNGNTN1 (edited February 10, 2004).]
posted
I trade almost exclusively with my traditional IRA. There are pros and cons to this-- biggest pro-- no cap gains tax (if stock goes up), biggest-- con not tax loss (if stock drops). In present bull market there should be more winners than losers--- caution though, in this unstable world situation-- bull could turn into bear overnight. I'm playing with $50K. I'm young and dumb and can afford to take a big hit with these funds (I even have my wife's OK!!). Not bragging just telling it like it is. My IRA is up 13% YTD. I would be ecstatic if I can double the retrn broader market (NASDAQ composite is my benchmark).
I'm not a technical trader or day trader. I stick to profitable or expected to be profitable companies in the near term. (CLSI, IESV, LPLHA, PRVH, GTEL, are typical stocks in my portfolio). I've been ivesting for over 20 years. Microcaps for 2 years and still consider myself a newbie. Got caught up in all the QBID hype and am down 30% on this one. Humbled once again by the unpredictable market, so I'm still learning.
Sorry for lengthy response and I'm way off topic, but good luck and don't forget to consider the downside of whatever you do with these pennies.
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. Stockmarket is to risky. LOL
