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If you don't do due diligence, yes it's a gamble. If you follow everyone blindly on the board after every stock tip, without researching, yes it's a gamble. If you simply think that pennies are something you can buy and just "forget about" and then come back to huge profits, yes it's a gamble. If you buy into a company with a bad history or too many shares in the market, yes it's a gamble. If you buy into a company with a CEO who is more concerned about share price than company performance, yes it's a gamble. If you are using money that you cannot afford to burn, yes it's a gamble. If you play with no exit strategy or if you don't stick to your exit strategy, yes it's a gamble. If you get greedy and hold out of small profits for a pie-in-the-sky runner, yes it's a gamble. If you like to buy into runs when the run is almost done, yes it's a gamble.
However... If you do your research and you take each trade very seriously... if you take every decision you make seriously... if you take everyone's advice with a grain of salt... if you only use your "play" money and you teach yourself to not be greedy... if you have self discipline... if every decision is based on fact and not emotion... then it's not gambling anymore... it's just a matter of whether or not you make good decisions and have good foresight, intuition, and solid analysis skills.
If you play every play smart, then profits are not just a random result of a stroke of "luck". The problem is, most of us are still learning... and the rest of us who do know what we're doing... well, they're still learning too.
-------------------- Life is like a roll of toilet paper. The closer it gets to the end, the faster it goes.
quote:Originally posted by amos moses: You only lose when you sell. Wait for it to come back up.
thats the worst advice you can give
if you see the stock is going down and no signs of coming back up .........sell for a loss.......and move on try to recuperate your money and make a little more
-------------------- gotta make a grand AT LEAST daily man
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Anytime you put money out with the possibility of making more or losing some or all of it, it's a gamble. The trick in this particular gamble is to learn how to trip the odds in your favor. That's done by leaving no stone unturned when your researching a stock and if you invest in what appears to be a momentum play, bail out quickly if things don't go as planned. Losing commission is nothing when compared to the 5 grand you say you have lost.
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This is going to be very long but the best read you'll find on this board!
These are Post's on how to make money in this market by three of the greatest people I have had the pleasure of trading with!
Learn ALL(LOL) of their tips and you'll do fine. And.........Yes, I do make money. My biggest tip?... DON'T HOLD ANY OF THESE PENNYS! Make money and sell....If it goes up more, Good for the other guy holding it, You've made money. MOVE ON!
First great info from Ric...(((HUGS)))
I updated my dd for all so here it is. I am writing a more detailed things you need to know section and will post when I finish.
Things you need to know
Best two pieces of advice for pennies. 1) Don't let people convince you that a penny is a long hold. You will get burnt. Buy low, sell high, and never look back. 2) Due Diligence.
Two things that you must learn about charts immediately is RSI and Bollinger Bands. They are so important. Now there is so much you can learn in charts that will help you make choices but I consider the above the most important things to learn for any investors. RSI will let you know if there is buying pressure or selling pressure. It will also confirm a run. Bollinger Bands also show price pressures and are used to support other indicators. There are links below under TA for education on understanding charts.
Relative Strength Index
Definition:
Relative Strength Index (RSI), an oscillator introduced by J. Welles Wilder, Jr., could be more appropriately called the internal strength index, for it compares the price of a security relative to itself. The RSI is based upon the difference between the average of the closing price on up days vs. the average closing price on the down days over a given period, and is plotted on a vertical scale of 0 to 100. An oscillator refers to a momentum or rate-of-change indicator that is usually valued from -1 to +1 or 0% to %100.
Wilder advocated a 14-day RSI, although shorter and longer periods have gained popularity when the market exhibits certain characteristics. Generally, RSI is measured in a period between 5 and 25.
Interpretation:
There are several possible interpretations for the Relative Strength Index, any of which can be very powerful depending on the market conditions and trading/investment approach: One interpretation is that buy signals are triggered when RSI is in oversold (20-30) area, potentially meaning that the stock is about to reach its low for this trend, and sell signals are triggered when RSI is in overbought (70-80) area, potentially signaling a market top.
A second mode of interpretation is to look for support and resistance lines or common chart formations such as head and shoulders in the RSI itself, indicating potential reversals that the stock chart may not.
A third mode of interpretation is to recognize divergences in the RSI, such as when the price is moving up when the RSI is moving down or vice versa. This can mean that the price is going to "correct" and move in the direction of the RSI.
A fourth mode of interpretation for the RSI is to view it as a bullish or bearish signal when it crosses 50. When the RSI crosses above 50 it can be considered bullish, and when it crosses below 50 it can be considered bearish.
Bollinger Bands
Definition:
Investors use trading bands, lines drawn above and below the moving average, to isolate a range of prices for a given security, based on the concept that a stock generally trades within a predictable range on either side of the moving average. When a stock is near the upper or lower limits of the trading bands is when an investor should pay closest attention, according to conventional wisdom.
Bollinger Bands are considered some of the most useful bands in technical analysis, for they vary in distance from the moving average of a security's price based on the security's volatility. During periods of increased fluctuation, the bands widen to take this into account, and when the fluctuation decreases, the bands are tapered for a narrower focus to the price range. The upper band is the standard deviation multiplied by a given factor above the simple moving average, and the lower band is the standard deviation multiplied by the same given factor below the simple moving average.
Interpretation:
The standard interpretation is that Bollinger Bands do not give absolute buy and sell signals, but instead indicate whether the price is relatively high or low, allowing for more informed confirmation with other technical indicators.
Bollinger Bands are typically drawn two standard deviations from a twenty day simple moving average for intermediate-term analysis, ten day for short term with 1.5 standard deviations, and fifty for long-term studies with 2.5 standard deviations. According to John Bollinger, for the most accurate average "choose one that provides support to the correction of the first move up off a bottom. If the average is penetrated by the correction, then the average is too short. If, in turn, the correction falls short of the average, then the average is too long. An average that is correctly chosen will provide support far more often than it is broken."
Mr. Bollinger also contends that:
Sharp moves tend to occur after the bands tighten to the average, when a stock is less volatile. The greater the period of less volatility, the higher the propensity for a price breakout.
When the price hits the upper or lower bands, it is suggested to confirm with other indicators whether that price movement shows strength or weakness, respectively, which could indicate a continuation. If indicators do not confirm this movement, it can suggest a reversal.
Tops or bottoms made outside the bands, followed by the same inside the bands, indicate a trend reversal.
A move originating at one band tends to go to the other band.
"Resource from IQCharts"
DD for otcbb and pinksheets
Try these two DD tools to be quick and good with your facts. At pinksheets in a matter of seconds under Company Info I can give you o/s, any r/s, company name changes, or planned changes and more. Quotetracker is a program you install on your computer. I wouldn't survive without it in a quick paced market. Tons of TA and FA with dd. Shoot pinksheets is my homepage on Firefox browser for quick reference. This is the first two places I go for fast due diligence.
www.pinksheets.com {Company Info tab is loaded with information} {SEC Filing Tab - wow} {News Tab - Pr's at your finger tips}
www.quotetracker.com - after you set it up add a symbol quickly then charts, news, research, and raw data at your finger tips. Great charts.
DD is mainly knowing where to go.
FA – Fundamental Analysis
www.pinksheets.com - first place to look!!!! Go to Company info for o/s. r/s, name changes, and many other facts. Go to SEC tab to look for filings. News tabs for latest news that may not show up through normal wire service.
www2.barchart.com - after you enter stock symbol select opinion to see trend spotter
www.otcbbtrader.com – otcbb loser/winner by volume, price, shares, transaction, and more
Timing your entry and exit from the market is critical to making money and controlling losses.
These are MM signals. 100 > I need shares 200 > I need shares badly but dont take it down to get them. 300 > Take the price down to get shares.... 400 > Trade it sideways based on Supply and Demand 500 > Gap one way or the other, usually to the direction of the 500 trade. Sometimes -if in the middle -keep the price right where it is.
Pennies are all about volatility and trends. The only reason to look at a 6 month chart or longer is to see the overall trend of the stock. Is it going up, down, or staying the same with little bumps in the road. Look for peaks and valleys and do they happen on a regular basis. If so then look for a bottom and buy then sell at the top and wait for the next valley.
Never let people tell you after a run that it will run again. That rarely happens. Usually after a run it slowly drops back down. Never average down. Sell and buy back at bottom. Holding until bottom never makes you money, it only makes your loses harder to bare.
Longs in a penny stock want you in so they give you the pretty picture. They hope they can get enough new investors to make their stock move and it won't until the stock is ready. Learn to follow trends and how to find the bottom plays. Usually if a stock has more then a couple pages then the stocks has already done something and hope is what keeps the thread going of it moving again.
Be smart, think, learn, and research.
Next our wonderful and lovely Queen of daytrading...Diana! I miss you girl!!!!!and Hello Sunny, If you are still reading!
Realityinc21.
IT'S CONTROLED BY THE PSYCHOLOGICAL TRAPPINGS OF THE MARKET.
Stage 1 - Accumulation. Stock is quiet, trading sideways and without a lot of volatility. Most everyone ignores the stock because it has no sizzle. Insiders hold large blocks of stock and quietly gear up for the distribution. Stage 2 - Breakout. Volume jumps up, psychological barriers are broken. Insiders begin to tell their friends of upcoming significant fundamental change. Pros take notice and buy the stock on the coat tails of the well informed. The public ignores it because they have not read about the company in the paper yet. It must be a scam. Stage 3 - Uptrend. As a larger audience learns of the company and its promise, more buying comes in to the stock and it begins to climb. Pros begin to sell, but slowly. Average investor begins to buy. Stage 4 - Pullback. The stock has gone up too fast, and some profit taking arrives. The jumpy investor who got the entry timing right but lacks confidence in his or her decision sells the stock with a small profit, and smiles in the mirror. The Pro holds on, Average Investor looks through the newspaper to find justification for ownership of the shares. Stage 5 - Resumption of the Uptrend. The pull back is short lived, and the stock bounces and continues higher. The wannabe regrets the sell, but provides self counsel on the merit of making a profit, albeit a small one. The Pro might sell a little bit more, but still holds the majority of the original position. The Average Investor is getting excited now, and thinks about what could have been if only he had bought when he first noticed the stock. Stage 6 - Exhaustion of the Uptrend. The media takes notice, and communicates the company's merits to the masses. The masses buy the stock, and it goes up sharply with strong volume. The Pros sell with enthusiasm. The Average Investor owns it now, and is telling everyone who will listen. The wannabe Pro jumps back on, after all, he was smart enough to buy it when the trend started, so he knows the stock well. Will hope make it go higher? Stage 7 - Gravity Works. Pro selling begins to weigh on the uptrend, and the stock fails to go higher despite high volumes. The stock starts to go down instead of up, and the Pro is almost sold out. The Average Investor continues to cheer lead, hoping to rally support. The wannabe ignores what the market is telling him, taking a loss is too painful to consider. The company is featured on the cover of a magazine. Stage 8 - The Second Guess. The stock bounces and starts to go back up. The wannabe Pro averages down while the Average Investor gets back to advising friends of his stock picking acumen. Pros sell their remaining holdings and begin to look for another deal to play, or perhaps start short selling the stock. Stage 9 - Out of Gas. The bounce is a fake out, and the stock moves lower again. The public own this stock, and they have no more power to buy. The Pro are making money on the short sales now, but are despised by the masses. Calls for short selling to be made illegal are made by the Average Investor, after all, the short sellers are the demons causing the sell off. Stage 10 - Dead Cat Bounce. The Average Investor and the wannabe Pro have no pain tolerance left, and finally sell for a big loss. The short selling Pros are the only buyers to take the share off their hands, and provide the needed liquidity. The stock bounces, and some short term traders make a quick profit. The Average Investor either swears to never buy a stock again, or tells lively stories over drinks about the one that could have been. Stage 11 - Post Mortem. Pros have forgot about the stock and are considering carpet samples for their new home in Florida. Average Investor continues to follow the company and buys loads of cheap stock to try and overcome the regrettable loss.
The stock market is mean. You can be a good analyst, but if you can't overcome the psychological traps of trading, you will do what the crowd does. To be successful, you have be one step ahead of the crowd, and trade with unemotional discipline. There are strategies to take advantage of each stage of the market cycle that can be applied just by looking at a stock chart. They just require a bit of knowledge.
EVERYDAY FOR THE 30 DAYS READ THIS 10 TIMES A DAY. ASK YOURSELF 10 TIMES A DAY "WHAT KIND OF TRADER AM I GOING TO BE??" AM I GOING TO BE A CRYING WHINNING LITTLE BITCH OR AM I GOING TO SHAKE IT OFF?? AM I GOING TO BUY TO HIGH BECAUSE I DO NOT KNOW HOW TO READ A CHART OR AM I GOING TO F-ING LEARN HOW TO READ A CHART?? AM I GOING TO BE THE ENTERTAINMENT FOR THIS BOARD OR AM I GOING TO GO THE LIBRARY AND CHECK OUT ALL THE BOOKS THAT I CAN READ ON DAY TRADING AND INVESTING AND STOCK CHARTING. AM I GOING TO LEARN HOW TO DO MY OWN DUE DILLIGENCE OR AM I GOING TO BUY ON THE RECOMENDATION OF PEOPLE FROM THIS BOARD??(IT IS PRETTY OBVIOUS THAT IS WHAT HAPPENED )THEY WERE GREAT RECOMENDATIONS BUT YOU WERE ABOUT 5 STEPS BEHIND. IT LOOKS LIKE BY THE TIME YOU WERE BUYING EVERYONE ELSE WAS SELLING. AM I GOING TO TAKE THIS LAYING DOWN OR AM I GOING TO GET MY G--D D--M MONEY BACK. NO ONE HERE CAN MAKE THOSE CHOICES FOR YOU!! MAY SEEM LIKE I AM BEING A COLD HEARTED BITCH BUT THIS THE REAL WORLD BABY. THE QUESTION YOU HAVE TO ADDRESS RIGHT THIS MINUTE IS..AM I GOING LEARN ON THE FLY OR AM I GOING TO BACK IT UP AND LEARN ABOUT WHAT THE F--K I AM DOING?? YOU DOVE IN HEAD FIRST NOW YOU HAVE TO LEARN HOW TO SWIM. IF YOU ARE NOT WILLING TO LEARN HOW TO SWIM--BAIL AND TAKE YOUR LOSS. DAY TRADING IS TIME CONSUMING. I WOULD VENTURE TO SAY THAT MOST OF THE PEOPLE ON THIS BOARD SPEND 5 TO 10 HOURS A DAY RESEARCHING-CHARTING-READING SEC FILINGS-GOING OVER FINANCIALS--READING NEWS RELEASES--COMMUNICATING WITH OTHER TRADERS ON STRATAGIES--THEN FINALLY BUYING--THEN THE SAME PROCESS BEGINS FOR THE EXIT. IT MAY NOT SEEM LIKE IT RIGHT NOW BUT I AM TRYING TO HELP YOU. AS WILL OTHERS ON THE BOARD. SUGAR COATING THE FACTS WILL NOT HELP YOU. YOU NEED A GOOD DOSE OF REALITY AND I JUST GAVE IT TO YOU!! IE REALITY INCORPORATED.... THE ONLY CONSOLATION THAT I CAN GIVE YOU IS: I HAVE BEEN IN YOUR SHOES. AFTER OVER 20 YEARS OF DEALING WITH THE MARKET I STILL WAS NOT PREPARED FOR THE DEPTH OF DAY TRADING. I LEARN NEW THINGS EVERYDAY AND MAKE MISTAKES EVERYDAY. AFTER 4 YEARS OF MAKING AT LEAST 5 TRADES A DAY I AM A NEWBIE JUST LIKE YOU. IT IS A PROCESS. WELCOME TO DAY TRADING AND GOOD LUCK WITH YOUR CHOICES.
REALITY INCORPORATED
ESTABLISH A SET OF TRADING RULES THAT WORK FOR YOU. THESE ARE MY RULES. YOU HAVE A ADAPT YOUR OWN. MAYBE THIS WILL GIVE YOU SOME GUIDELINES TO GO BY.
MY PENNY STOCK RULES:
1. I never buy on impulse or get emotionally attached to a penny stock--think LOGIC--I buy it, I sell it, I make money and I rarely look back. 2. I never buy a stock JUST because I like it or worse someone else likes it. 3. I rarely buy a micro penny stock trading under a volume of 50,000 mil--80 to 100 mil is better (always remember there has to be buyer for every stock you buy).. 4. I rarely hold a micro penny stock over night...My definition of micro penny is under .10 cents ..Rarely over a weekend..NOTICE I SAID RARELY. THERE ARE SOME STOCKS THAT HAVE A BUILD UP AND IF THE VOLUME IS GOOD AND I FEEL CONFIDENT ABOUT MY DD I WILL HOLD IT FOR THE RUN. At $7.00 to $10.00 a trade I can buy and sell it every day on news or hype or earning whatever. .(THAT'S WHY IT'S CALLED DAYTRADING) 5. I never buy a penny stock on the way up. IE CHASING I watch the pre market trading and set a buy price and a sell price and stick to it (missed out on NEOM by sticking to my rules--I noticed it at .11 and refused to buy to high) UPSIDE IS I DO NOT HOLD 500,000 SHARES OF NEOM AT.43 CENTS---DOWNSIDE I DID NOT MAKE 50,000 DOLLARS. I DID MAKE A COUPLE OF GRAND BY PLAYING THE GAP AFTER THE RUN. IF YOU MISS THE RUN PLAY THE GAP. LIKE THE MAN SAID--THERE IS ANOTHER STOCK JUST WAITING TO BE BOUGHT. 6. I never think about GETTING RICH OR RETIRING on penny stocks..My goal is to make $200.00 a day and not lose my original investment. Most often I exceed my goal. (When I lose money it is usually because I have not followed my own rules) 7. I never ride a stock down--I will sell it and re-buy it. EXAMPLE: BOUGHT CTKH AT .002 AND .0022. SOLD HALF AT .0046. SOLD HALF OF THAT HALF AT .0069. IT STARTED GOING DOWN AND I BAILED OUT AT .006. BOUGHT AGAIN TODAY AT .0032. LOGIC-DO YOU ACTUALLY BELIEVE MUTUAL FUND MANAGERS WOULD HAVE HELD ONTO IBM IF IT DROPPED 50%?????--(WELL SOME WOULD) LOL I THINK NOT..RIDING A STOCK DOWN IS LIKE THROWING 50% OF YOUR MONEY OUT OF A CAR WINDOW AT 75 MILES AN HOUR AND HOPING IT FLIES BACK TO YOU. OR BETTER YET "IF YOU LOVE IT LET IT GO--IF IT LOVES YOU IT WILL COME BACK TO YOU". THATS BULL****--IF IT LOVED YOU IN THE FIRST PLACE IT NEVER WOULD HAVE LEFT.....I have actually bought and sold the same stock 3 times in one day. ATNG WAS A RECENT 3 TIME BUY AND SELL. BOUGHT AND SOLD IBZT 3 TIMES ONE DAY. (not usually but it does happen). 8. I never insult or bash another fellow trader..I respect other people's trading methods. I LEARN FROM THEM. What the hell--It's not my money.....( It's not like they are setting on third base at a black jack table and take a hit on 15 and the dealer has a 6 showing and I have $500.00 dollars riding on that hand). I DO LISTEN AND LEARN AND BENIFIT FROM THEM. 9. I never trade with MONEY that I am not willing to lose. 10. I follow the market and market trends (not just the stocks) 11. I never buy a stock without reviewing, analyzing and understanding the charts. I learned how to read charts and believe in them...They do not lie..I MAY NOT KNOW WHAT THEY MAKE OR PRODUCE OR SELL WHEN I BUY IT BUT I DO REVIEW THE CHARTS ON THE FLY AND PUT IN A BUY ORDER FOR SMALL AMOUNT TO GET IN THE DOOR. MOST TRADERS KNOW WHEN A RUN IS COMING AND HAVE ALREADY DONE THE DUE. 12. I never get gambling and investing confused. I INVEST IN REAL ESTATE...MY BUSINESS...SMALL,MEDIUM AND LARGE CAP STOCKS WITH A HISTORY-MANAGEMENT TEAM-FINANCIALS--ASSETS--CASH--ETC..30YEARS+ GROWTH AND INCOME MUTUAL FUNDS WITH 12% OVERALL GAIN IN GOOD AND BAD TIMES (THEY ARE PROFESSIONALS AND THAT IS THEIR JOB). I GAMBLE WITH PENNIES.. MY DEFINITION OF PENNIES IS ANYTHING UNDER $5.00. 13. I always take 50% of earning from each week and e-transfer into INTEREST BEARING TAX account. THEN I LEARNED HOW TO INVEST THAT MONEY IN REAL ESTATE TO MINIMIZE TAXES. INCORPORATE, PROTECT AND SHELTER. 14. I ALWAYS TAKE MY ORIGINAL INVESTMENT OUT OF THE EQUATION WHEN IT IS FEASIBLE TO MAKE ENOUGH MONEY ON THE TRADE TO MAKE IT WORTHWHILE .IE..WHEN THE STOCK IS ON A RUN UP SELL PORTIONS AT AT TIME TO RECOUP ORIGINAL INVESTMENT. IF IT IS A STOCK I PLAN TO KEEP LIKE TFSM--I BOUGHT AT 1.06. AT 2.12 I WILL SELL HALF AND RECOUP INVESTMENT AND KEEP 5000 SHARES FOR FREE. HOPEFULLY THAT WILL BE THIS WEEK. 15. I ALWAYS HAVE FUN......ACTUALLY I HAVE A BLAST.... 16. I LEARN SOMETHING NEW EVERYDAY... 17. I CAN'T SPELL, TYPE WELL OR USE PROPER GRAMMAR--AND I SWEAR LIKE A SAILOR..BUT IF YOU PUT A DOLLAR SIGN IN FRONT OF IT---I WILL FIGURE IT OUT.......THAT CERTAINLY DOES NOT MAKE ME STUPID..IT MAKES ME SMART BY RECOGNIZING MY LIMITATIONS. LEARN YOURS. 18. I ALWAYS MAKE MY OWN DECISIONS AND TAKE ALL RESPONSIBILITY FOR MY ACTIONS. 19. I LAUGH EVERYDAY..MOSTLY AT MYSELF AND SOMETIMES AT OTHERS... 20. LAST AND MOST IMPORTANT--THE MARKET HAS A RHYTHM--EACH STOCK HAS A RHYTHM--LIKE GREAT SEX--A RHYTHM..FIGURE OUT YOUR OWN RHYTHM WITH THE MARKET AND DUE YOUR OWN D.D.. LEARN THE RYTHEM OF THE CHARTS. IT IS CALLED "HARD WORK". THE REST WILL FOLLOW. TAKE THE TIME TO PASS ON YOUR GOOD FORTUNE TO OTHERS. WHAT GOES AROUND COMES AROUND AND YOU CAN TAKE THAT TO THE BANK.
And From dardadog! The master of getting it done FAST! WOOF dog!
There seems to be a large amount of "newer" inexperienced traders here on Allstocks these days. Glad to see so many new, and what appears to be, younger traders out there. I wish I had been smart enough in my late teens and early twenties to invest in my future. I don't consider myself "old" at 43, but when I was that age I considered my future to be next week rather than next decade. On to the point here. Many of the investors here follow my "flyin fast" leads and do in deed make good quick returns on their investments. But I want to bring attention to a very important rule that I'm afraid many may be overlooking. Particularly in the case of "QBID". The rule I am refering to is "Cover Thy Ass". It's fun (and profitable) to latch onto a microcap that takes off like a rocket. But gains on "paper" don't impress the finance officer, and they don't pay off or save for college tuitions. Microcaps are just that for a reason. Something in the companies past has dictated that they are worthless. When they stir, everyone aware becomes excited and begins accumulating shares with the "Beverly Hillbilly's" theme song stuck in their head. Dreamin' and making extravagant shopping lists, walking around with a stupid grin on their face, thinkin' EZ street is the next block up from here. "Danger Will Robinson - Danger"!!!!! Guys.....if it were really this easy, nobody on the planet would work!!! I make this point, and hope many take to heart, because paper gains are just that..."paper". You see how fast the portfolio can increase on one of these wild rides, but believe me, it can shrink faster. The smart investor always, and I mean ALWAYS, keeps this first and foremost in mind. Front And Center. While these microcaps are great to play, a smart investor will always "Play Free". Pick a price at which the stock reaches where you can sell partial holdings and keep a block of shares for free. You then have your initial capital back to re-invest in "new" up and comers, and if the free gem you are riding tanks, you can still get some use out of the shares you own for free. .0001 Certs can be used in place of Charmin next time you are at the grocery store. Chafes a bit, but not as much as it does if your ass is raw from the ol' back door screwin' you just took by having your whole wallet tied up on the dream. I want all to really think about this. More people in the penny game have had this experience become a realization, than have had the "Beverly Hillbilly's" dream come true, I assure you. Just remember, although this seems like a game, the only real game in life belongs to Milton Bradley. Good Luck out there. ------------------ DaDog
-------------------- Lil,
Dont LOSE more than you can afford to invest....LOL
I'm buying low and selling into the run...
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As far as what Lil just posted, treat it as your penny stock gospel. If you really want to be successful, learn all of it. Visit the sites, do some research before investing, get a basic understanding of technical analysis and ask questions. For the most part people are pretty helpful here. So many come here with dreams of quick riches and before you know it, they're gone. Usually they just followed someones picks without knowing what they were doing and wound up losing everything. It's just not that easy. You've gotta put some time and effort into it.
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Couldn't have said it better myself WarpedMind. Also, remember you can't have all the winners; that means be patient even if some spectacular news comes out about another stock. Also, a good entry point is key.
Understand individual stocks are literally given to for-profit companies. What I mean by that is that a company is handed the shares of a public company to do whatever it wants with those shares in order to "create a market" for those shares. Well these share handling companies make money from the markets of their shares, therefore, although they want you to buy them, they also want to keep an endless supply of their shares. So they prefer that you buy their shares high, and sell the shares back to them very low. Naturally, a stock's company in itself acts as the lure to buy the share handling companies’ shares, so the share handling companies wage their own evil (the literal word "evil" used here) campaigns to discredit the stock's company, to attack advocates of the stock's company, to setup the stock's company for failure by selling it bad financing, and to get you to buy higher than where you should.
The share handling companies can sell infinite shares of the kind of shares they handle using both legal and illegal shorting. When they want their shares back, they use the aforementioned evil methods to kill the market for those shares. They really don't care how long it will take as long as those shares get back to them. After all, they think the shares you own are theirs, and they want them back so they can use them to make money again. The market is their business, and they get money from "making the market." Demand vs supply really means little here.
Your job is therefore two-folds: 1) avoid being the payroll of the share handling companies, 2) avoid companies that are bad to their shareholders. Here is how to do both:
1) Rarely buy at the ask. Be on the bid, and try to get a low price. Never chase a runner on news that is not an instant multi-million dollar deal, that is not about solving a problem that is currently a top public priority, or that doesn't bring attention to an undervalued stock.
2) Make sure the company you are buying does not have a history of repetitive dilution and reverse splits, dilutes very little or buys back shares quarter over quarter, has a good cash balance, has a net income, has positive cash flow, and has low debt compared to overall assets:
posted
In a sence it is a gamble because there is always a chance of loosing and some loses are inevitable. About 5 years ago I too lost a lot of money. I didnt have a clue what I was doing and lost a ton on tech stocks in 2000. I stopped trading for about 4 years and just came back this year. I wish I didnt quite those years since I couldve made a lot of money by now. If I were you I would do the same thing I did this time which is thourouly study the market. Read some books on trading. Do some studies on market patterns and find out what produces the greatest gains with the smallest losses. Keep a record of all your trades and find out what you did right or wrong on each one. What I did is created a binder with so far about 40 pages of info. All my trades and an analysis of them, other good picks I missed and why,trading rules, a few pages of things written by people at allstocks, all the prs that brought stocks up ect... Maybe do some paper trading until you find a strategy that produces more gains then losses on a consistent basis. I wouldnt do any trading before I have a proven strategy. Then try your strategy with a small amount of real money until you learn to get your emotions completly out of it and then throw some big money on some stocks. Real important is stop losses
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Read some books on trading. Do some studies on market patterns and find out what produces the greatest gains with the smallest losses.
just to elaborate on what I said about books. much of the stuff in books espesially the stuff on technical indicators is fairly usless. Although the little info that is usefull makes the books helpfull to a beginner. What I like about the stock market is every indicator can be tested. I Test everything by checking past charts because much of what is in books is a bunch of nonesence. Once you find out what really works and what doesnt youll be ahead of most traders who use certain indicators just because there grandma said they should.
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quote:Originally posted by amos moses: You only lose when you sell. Wait for it to come back up.
Thats bull, you lose holding a stock that is dropping in price. Hoping it will rise again isn't a strategy, it's giving you money away. Even a lose will be a gain if you remove your money from a losing stock and put it into a winning one.
-------------------- Invest with your brain not with your heart.
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Ric is 100% right. Everytime I pull out of a stock with a 5-10% loss and the stock keeps going down I smile. I know I made the right decision and that if I still like the company I can try to invest later on when things start turning up.
-------------------- If you are not having fun, you are probably losing money
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OUTRAGEOUS!!! WHLI stole $70 million from the market, and probably lost the market over $100 million. All for what? 150K per quarter, and practically no cash in the bank. Where is the SEC? What the heck is the SEC doing allowing these scams to continue to trade? Who is protecting the average Joe? And there are probably hundreds of these scams in penny land just sucking the life out of the market and our economy. The SEC needs to implement performance requirements. This neglect of those who do tremendous harm to the markets must stop.
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Life is a gamble, as stated before that your 10% profit and get out and find the next one , don't count on the big get rich gain. I did that my first two years and lost 1,500 dollars . Now i'm slowly starting to get it back.
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imakmony2005
unregistered
posted
Hell yes its a gamble, but walking across the street is a gamble if you dont look both ways.So look on top, under it, around it, pick it up feel it,take your time mr market will be here the next day, your money may not be. IMHO
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I am curious though - I agree that no penny should be a long term hold. But does this apply to all OTC BB's and Pink Sheets? I am holding NWPO and although it is very volatile, I believe in the fundamentals and was planning on holding 1-2 years. Am I being stupid?
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quote:Originally posted by amos moses: You only lose when you sell. Wait for it to come back up.
Thats bull, you lose holding a stock that is dropping in price. Hoping it will rise again isn't a strategy, it's giving you money away. Even a lose will be a gain if you remove your money from a losing stock and put it into a winning one.
I agree with Ric 1,000%
I refuse to gamble!
GZFX is in a serious uptrend which will continue because it's moving on anticipated knowledge of future disclosures concerning significant material events! This is not a flash in the pan!
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