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Hello all, I've been trading for sometime and would like to try investing a small amount into penny stocks to see how I can do. I just have a few questions first. For one, how do you guys pick stocks? With stocks valued at less than .01 how do you predict what it will do? How do you all make your picks? Where is your research done and what is it based on? I'm ready to take some risks with some of my money to hopefully make some gains. I just need some help to get my foot in the door and understand the penny stockmarket. Any help is appreciated. Thanks. Matt
Posts: 1504 | Registered: Sep 2004
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This board is great for information. The hottest pennys have huge followings and the best people find new stocks to try. Dardadog has great advice, especially if your daytrading. Everyone is fairly helpful on this board.
Well, it all depends on your investment strategy. Are you planning to Day Trade, Swing trade or just trying to find that small company that might make it big. You will get a lot of people tell you different ways here and most think the other is wrong. I like to swing trade myself. Look for a penny that over a few days follow a trend and buy low sell high. Only thing you have to worry about in penny land is these patterns change quickly so I normally only swing 2 times on a given stock. These stocks are easy to find because they are listed on the board. Volume the key. Need the volume to sell your shares.
Ric
Posts: 4405 | From: Bristol, Tn, USA | Registered: Aug 2004
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What would be the difference between day trading penny stocks and swing trading penny stocks? It's been my udnerstanding that most penny stocks are extremly volitile and you should really monitor them everyday and, if you can, constantly. Let me ask this question another way.
Say you are a day trader and you buy a stock at .05. As a day trader what kind of movement are you looking for, when do you sell? As a swing trader what kind of performance would you be looking for and in what amount of time?
Since I have investments in higher, safer, stocks I don't know if I care to find the small stock that sky rockets from .05 to 10.00 in a few months. It'd be nice but right now this is more of a playful thing to see what I can do and determine just what type of investing I want to do. Matt
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My advice is to stay away from penny stocks unless you're willing to put the time in. Dardadog has great advice and links ; do a search for his posts. He spends about 60 hours a week researching pennies/pinks. He uses otccharts.com but also a lot of other resources. Most pennies/pinks cause most traders to lose money...BE YE WARNED.
Posts: 0 | Registered: A Long Time Ago!
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Trading Pennies is not for the investor. It requires a lot of time and work. You can't take your eyes off them if you are holding. But big bucks can be made.
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You gotta be "Quick on the Draw" meaning ready to pull the trigger fast, otc charts or any real time feed with Level II, Lots of research and always listen to the Dog or glassman Posts: 443 | From: Honolulu, HI | Registered: Jan 2004
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Oh I understand the risks involved. As I said this is just a side project right now. While I'm sitting on a few stocks, which aren't pennies, I'd like to try investing in the pennies with a much smaller amount of my total investment. I'd only be investing an amount that I would not get into trouble with if I lost it. I do also have a good amount of free time during the day to monitor the market and what not. Right now I'm just having a difficult time understanding how the pennies work. Day trading vs swing trading in the pennie market. How to predict movement etc. I'll take a look at the otccharts.com for more info but I would still rather have real people talk to me and explain things. Matt
Posts: 1504 | Registered: Sep 2004
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Just some general advice. As soon as you buy, put in your sell order in case it plummets. Don't get greedy - pigs get slaughtered. I'd rather take 15% than expose myself to undue risk and try for 20%... There is a reason they are on the OTC BB and/or pink sheets - they are micro cap and are very volatile. The management of many of these companies is inept at best. So take profits and don't put too much faith into any of these companies making it "big." Any post with sensational language is usually misinformed...be wary of anything like "Biggest Penny of the year - 2 cents to 20 dollar sin 6 months.."
Posts: 156 | From: Philadelphia, PA, USA | Registered: Jan 2004
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