posted
now i have some good stocks qbid, nnco. im pretty sure im suppose to hold on to these cause they're suppose to do well.
my question is, is the penny stock game about buying 1000000 shares of something at .001 and sell it 2min. later at .002 is this how you make money in this bussiness?
posted
If it were that easy I would be rich. Study as much as you can. Go to www.stockcharts.com and click on chart school. I just bought "The market makers edge" by John Lukeman, and "PitBull" by martin Schwartz.
quote:Originally posted by snakeii: now i have some good stocks qbid, nnco. im pretty sure im suppose to hold on to these cause they're suppose to do well.
my question is, is the penny stock game about buying 1000000 shares of something at .001 and sell it 2min. later at .002 is this how you make money in this bussiness?
posted
It is. Same concept as with the higher$ stocks. Buy low and (hope to) sell high. As stated, if stocks always did that then we'd all be rich!
Best suggestion...BE PATIENT and don't feel like you have to put your $$ into something just b/c you have it. Wait till you see one running and ride it...and then get out when you feel (and indicators say) it's time to get out.
Some gems have come out of this board so watch some of them, but, don't necessarily buy stock in all of them.
posted
I heard "be patient" a lot when I was a noob as well, yet still made mistakes because that phrase can be so ambiguous to someone new to pennies. I will try to elaborate by pointing out 4 common mistakes that I made when I started.
Points to remember:
1. DON'T CHASE A STOCK UP!!! ---Generally, once a stock has made a 20-30% run in 20 min to a half hour it is pretty much assured that there is going to be some profit taking and putter out. If you see momentum starting to build again in the form of buying this is when you jump in.
2. DON'T BUY ON THE GAP UP!!! ---Generally, the market makers inflate the ask price of hot stocks the first 10-15 minutes of trading, then bottom it out once they have gotten premium prices for thier shares.
3. ONCE YOU MAKE YOUR GAINS, GET OUT!!!! ---Don't get greedy. My hardest losses came when I could have sold for a 15-20% gain and I held thinking it could go up 50%, 75%, or even 100%...I ended up taking 10-20% losses on each one. Once you see buying pressure stop, get out, take your profits and be happy.
4. DON'T FALL IN LOVE WITH A STOCK!!! ---This sounds harsh, but don't treat a stock like it's your favorite pet, treat it like it's a hooker. Get in, do your thing, and get out. Do NOT hold-hold-hold, while the stock sinks lower-lower-lower. This is penny land, many stocks are plagued by share dilution, negative earnings, and pump and dump scams. Very few are worth holding long term.
There are many others but this should be a good start. You will learn many others along the way.
BTW, getting a level 2 quote system will help tons so you can moniter selling and buying pressure.
Good luck.
[This message has been edited by NukeMeds (edited May 07, 2004).]
quote:Originally posted by NukeMeds: I heard "be patient" a lot when I was a noob as well, yet still made mistakes because that phrase can be so ambiguous to someone new to pennies. I will try to elaborate by pointing out 4 common mistakes that I made when I started.
Points to remember:
1. DON'T CHASE A STOCK UP!!!
2. DON'T BUY ON THE GAP UP!!!
3. ONCE YOU MAKE YOUR GAINS, GET OUT!!!! ---Don't get greedy. Once you see buying pressure stop, get out, take your profits and be happy. (NOT IN NUKES ORIGIONAL. This particularily true of day or swing trades. Some stock you should have longer term unless strictly a daytrader and may go though humps and slumps while you hold it. Sometimes you can sell a portion of your holding on peaks and buy on dips. When you really get to know a stock many times they will become your big moneymaker. Dont always have to 'settle' for 10 or 20% gain with these but if do homework and pick right ones may make many bagger, [100% is one bagger] but those kind of gains are occasional and usually pure luck if you get a gain like that on stock, without putting in time.)
4. DON'T FALL IN LOVE WITH A STOCK!!!
Good luck.
Nuke those are definately rules to live by in pennyland. Two others I would add:
5. DO YOUR HOMEWORK!!! No matter where you get your 'hot tip' dont invest until you do your DD (due diligence). For a techie that may only mean taking a couple minutes to look at a chart, or if fundimental investor then check out company that way or better yet do both. Yes it may go up a little while you look but you will be way ahead in long run.
6. DEVELOP YOUR OWN STYLE OF TRADING!!! Whatever you may read all styles do not fit everyone. The quick profits of daytrading may look attractive but you need a cast iron stomach and high pain tolarance to do it long term. Read Bob Freys, "Daytrading: Your Dollars at Risk" thread. Whether technical or fundimental research is crucial and you need to develop a style that fits your goals and personality if you are to be successful long term. [This message has been edited by NukeMeds (edited May 07, 2004).]
[This message has been edited by BigT1 (edited May 07, 2004).]
posted
Snake, doesnt sound like you know anything about trading..sounds like you picked Qbid strictly by what the hypers,pump & dumpers of this bulletin board are saying.. remember that so called "traders" on bulletin boards are giving "tips" usually for one reason.. because they already own the stock and want you to buy it to drive the stock up so they can sell off their position and make their profit while you may have bought it at a high price it doesnt even deserve.. take what Nuke, BigT and Bob Frey as gospel. i couldnt have said what they said better myself.. the most important thing of all is to Educate yourself about trading before you ever put a penny (pun intended) in a stock.. read books, learn from others on boards (becareful who you learn from though), dont buy on "tips" just put a "tip" under consideration and analyze the stock via either/or TA (technical analysis) or FA (fundamental analysis)... anyways ill recommend 3 books ..
A Beginner's Guide to Short-Term Trading by Toni Turner - www.toniturner.com
posted
Swing (holding a stock between 2 to 5 days) or Position (holding a stock between 3 to 6 weeks) might be better suited for you then the hectic life of a daytrader (trading stocks between seconds, minutes or hours) ...
IP: Logged |
posted
Mach how could I have neglected Peter Lynches books? ONE UP ON WALLSTREET is a must read for any new investor and concepts are very adjustable for nearly any style but pure technical or pure daytrader. Even if you plan to do one of those it is just a fun book to read. Any library or bookstore. Beating the Street is also very good.
IP: Logged |
posted
Bad BigT bad bad bad lol i'm going to tell Peter u forgot to mention his books to a newbie lol ... anyways i will get his books sometime soon.. right now im reading too much so dont have the time to read his.. what has Peter been up to lately? u dont hear much about him ever since everyone jumped the Warren Buffett bandwagon.. here's a stock i been keeping a eye on for last couple of days.. its LBTT (Lifeline BioTechnologies, Inc.)... its been doing a decent stable volume this week and today(friday)it closed up.. to me at least its either going to be a sideways channel or will begin a uptrend fairly soon.. though i can be wrong <shrugs> .. it closed at .0165 from previous day of .016.. i'll have to keep a eye on it further to see if im right or not.. could be wrong though cause yesterday it was a "hangman" formation.. we shall see.. what do you think BigT? or anyone else...
[This message has been edited by Machiavelli (edited May 07, 2004).]
posted
Have to go to work so check it later Mach. As far as Peter Lynch he is back with Fidelity in charge of research from what I read. Apparently his kids grew up and he got a little bored, they asked him to come back and he kind of decided in what capacity. Since research was his forte it was a natural fit. Later Mach.
IP: Logged |
posted
Mach as far as LBTT goes: it is a pink sheets so hard to get much information other than their own PR. Some of their products seem to have potential but time line to production is very sketchy. They do have a few things actually on the market but any big gain type items appear to be down the road. They are worried about shortselling by MM's and ask all stockholders to obtain certificates. This concerns me a little as they are trying to control liquidity and although we know MM's play games I dont know if this is warrented.
On the positive side they say they may be OTCBB by mid to late summer, funding is in the works, sales and shipments have begun on Mastoscopes which they believe will 'potentially create sales of $5 million this year and approach the break even point if this occurs.
Mach think it has potential short term as you watch Tech trends. Long term may also have potential but need more fundimental information before I would make a large longterm play. If no dilution in last year they have 82 million shares, no info on float.
Well so far its looking like im right about LBTT.. today despite the market crashing (DJIA is under 10,000 for first time since december) LBTT is making a trend reversal and going on the uptrend like i predicted last week in one of my threads on allstocks.com .. i predicted it based on its candlestick and volume.. only problem is it did a major boost today on low volume (closed at .018 today right?.. my eyes too tired today lol ).. so it might go back down tomorrow but if it doesnt and keeps goin on its uptrend.. it looks to be a winner .. tomorrow will tell if it is or not.... remember im a Techie not a Fundy Big T lol i go by the chart analysis.. :-D
UBBFriend: Email this page to someone!
Printer-friendly view of this topic
