posted
I have been through many different styles of trading in my 5 months of full time penny daytrading. I have finally found one that produces gains on a daily basis. All my old trading styles produced about 50% - 60% winners, but my losses is what held me back from making a consistant weekly gain.
My new style has to do with OTCCHARTS and NEWS.
1. In the morning, open your "news and filings" section in OTCCHARTS. Click on news. (The filings don't seem to produce many runners)
2. Disreguard all the stocks that are picks by Subway, Hotstocks to watch, or Market Alerts.
3. Put all the stocks that have NEWS into your OTCCHARTS personal watchlist.
4. Click on trades in your personal watchlist. This will bring the stocks with the most trades to the top
5. When the bell sounds, watch the stocks at the top of your watchlist with the most trades. Today, there were only 3 that really had a lot of trading volume right off the bat. Those three were ABXA, NHLC, and XKEM.
6. After about 2 or 3 minutes you will have your plays for the morning. There is only one thing to check before getting into a trade. You have to look at the BID and ASK to see if they are moving north. For example:
ABXA opened at 5.70 X 5.75. Within 2 minutes it went to 5.75 X 5.80. THATS A PLAY
NHLC opened at 12.25 X 12.50. Within 1 minute it was at 12.50 X 12.75. THATS A PLAY
XKEM opened at .045 X .047. Within 2 minutes it went to .045 X .046. THIS IS NOT A PLAY
7. Entry strategy. Do not try to get in these at the ASK price. It won't work most of the time because they are running to fast. I decided to get into ABXA about 2 minutes into today. BID and ASK were at 5.80 and 5.85. I put my order in for 6.00 to make sure it fills. It filled at 5.90. I have missed many runs trying to put my buy in at the ASK price and then chasing it up 20%.
8. Exit strategy. It's up to you. Some have 1 run, some have 2 runs, a lot have three runs like todays ABXA and NHLC. Sell when you feel comfortable. Don't get greedy everytime waiting for that third run.
Try it out next week on paper and see how it works for you. I have been averaging about 10% to 15% on most trades. That may not sound like much when there seems to be a stock every day that runs 100% or more, but you don't catch those very often.
Good luck,
Oh yeah, it works for midday news as well. I caught IDGE from .0019 to .0021, ONEI from 1.17 to 1.33, and took a loss on MCTI on news after the bell.
posted
Do I type in otccharts.com? I did and it took me to microcaptrade. Is this correct?
Posts: 395 | From: Grand Rapids MI 49546 | Registered: Feb 2004
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posted
Thats a really good idea. I live by the realtime news. I didn't think about putting them all on you're watch list.
Posts: 2049 | From: Jax,FL,USA | Registered: Nov 2003
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posted
I use otccharts to, and it is great. I've been trading in the same way for sometime already and I think is a good idea and it is working for me to, but my problem is the "Unsettled Cash".
I use Ameritrate and when I buy and sell in the same day you have to wait 3 days for the money to settled.
How do you deal with that? May be for those who are playing with a lot of money is no problem, but not me, I'm not rich yet and I don't have a lot of money to play with.
quote:Originally posted by mamboking: I use otccharts to, and it is great. I've been trading in the same way for sometime already and I think is a good idea and it is working for me to, but my problem is the "Unsettled Cash".
I use Ameritrate and when I buy and sell in the same day you have to wait 3 days for the money to settled.
How do you deal with that? May be for those who are playing with a lot of money is no problem, but not me, I'm not rich yet and I don't have a lot of money to play with.
Any sugestions? Tx
Even though you can't buy stocks under $5 on margin, you should open a margin account. That way your funds will be available immediately. Like I said, you can't buy pennies on margin, but a margin account will give you access to those funds right away.
Posts: 1120 | From: San Diego, CA | Registered: Feb 2000
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posted
Thanks, great info., and much appreciated. I too use OTCCHARTS, and have found them useful. CD
Posts: 240 | From: Buda, Texas, USA | Registered: May 2004
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posted
Another play... Take a stock with momentum and a very low o/s... Then choice one which give at last 1 good PR all month Enter on the 50 Moving average line and exit 1.) If the pps go under this line for a very small loss 2.) On next resistance line immediately (don't wait of a break out) for a little gain
With this method your down side is limited (1 good PR all month) and you will make 5-10% all 15 days.....
quote:Originally posted by mamboking: I use otccharts to, and it is great. I've been trading in the same way for sometime already and I think is a good idea and it is working for me to, but my problem is the "Unsettled Cash".
I use Ameritrate and when I buy and sell in the same day you have to wait 3 days for the money to settled.
How do you deal with that? May be for those who are playing with a lot of money is no problem, but not me, I'm not rich yet and I don't have a lot of money to play with.
Any sugestions? Tx
You're gonna need margin do play several a day. Also, if you have $5000, you should switch to Freetrade for their low commisions.
With Ameritrade 3 plays a day at $22 round trip is $16500 in commissions for the year.
With Freetrade, 3 plays a day at $6 round trip is $4500 in commissions for the year.
Freetrade will save me a minimum of $12000 per year in commissions.
quote:Originally posted by richnessforeveryone: Another play... Take a stock with momentum and a very low o/s... Then choice one which give at last 1 good PR all month Enter on the 50 Moving average line and exit 1.) If the pps go under this line for a very small loss 2.) On next resistance line immediately (don't wait of a break out) for a little gain
With this method your down side is limited (1 good PR all month) and you will make 5-10% all 15 days.....
Richness, sounds interesting. Can you give a few examples that you have played recently so I can do some research on what to look for??
quote:Originally posted by jiggin: Richness, sounds interesting. Can you give a few examples that you have played recently so I can do some research on what to look for??
Jiggin......I'm play since long time with ISON....average play...2 in, 2 out in one month....average point 0.22....thats circa 12% each time......my last play enter at 1.55 and would exit at 1.73 but got no chance like the top this day was 1.72 so I'm in now since 3-4 days......under 1.50 I will sell for a little loss....Ma50 is for the moment by 1.59 and closing today was by 1.56 but mA50 will go down for 3-4 days next week and I expect pps to increase the next 3-4 days so pps will be again over the Ma50 line.....
A few months ago Tide.ob was too a play and soon will be too one again but I don't followed the PR's here this last two months like I don't played with them since so here I have again DD to do...
[This message has been edited by richnessforeveryone (edited June 25, 2004).]
quote:Originally posted by jiggin: You're gonna need margin do play several a day. Also, if you have $5000, you should switch to Freetrade for their low commisions.
With Ameritrade 3 plays a day at $22 round trip is $16500 in commissions for the year.
With Freetrade, 3 plays a day at $6 round trip is $4500 in commissions for the year.
Freetrade will save me a minimum of $12000 per year in commissions.
Is freetrade as reliable as Ameritrade? Also, does it have level 2?
I am a daytrader, and I have been thinking about switching to freetrade, but I am hesitant.
posted
As I was sitting in the I-95 traffic I thought of a strategy to invest in penny stocks. Obviously you can catch the ride up but most of the time the stock wont move for months even years and then BANG, its up over 300% in a few short weeks. Soooo..
What if I had 10,000 to invest. I put just $500 into 20 penny stocks(under .02) spread out over the year. Maybe 2 a month or something. And you hold until they each go up 200+%. Now, if 1 of them goes up 200% then of course you sell all and take your $1000 profit and wait for the others to do the same. You need to be able to hold the stock for years. But eventually, hopefully you can make 30,000 total if all go as high as 300% at some point in time.
Isn't that safer then putting $10,000 into 1 stock and waiting for that 1 stock to go up 300%?
quote:Originally posted by sopclod: Is freetrade as reliable as Ameritrade? Also, does it have level 2?
I am a daytrader, and I have been thinking about switching to freetrade, but I am hesitant.
I use freetrade also. As someone stated, your first 20 trades are free each month. It is very reliable, but all questions are handled through e-mail, there is no customer service reps to call. However, it does not come with a streamer, L2's, or anything extra, those all cost money if you want them. IMHO, it is well worth the cost you save in transaction fees to not have those features. Do what I did, transfer to freetrade, but keep your old brokerage account open and use that for quotes and extras. I transferred from Scottrade, but kept that account open so I could still use their services for free and not have to pay for them on freetrade. Keep this in mind, unless you are transferring from Ameritrade (they are owned by the same company) it takes about 10 days for your securities to transfer. Thats how long it took me and I was dying not to have access to my positions for 10 days.
Posts: 1120 | From: San Diego, CA | Registered: Feb 2000
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posted
Freetrade is very reliable. It has only locked up on me once in 3 months. I am very happy with Freetrade. I switched to freetrade from Ameritrade about 3 months ago and it is the exact same system. Commissions are low because thier is no phone support. If you need to call your broker every week, Freetrade is not for you.
As for level 2, I don't know, I just use it for trading. I use OTCCHARTS for everything else.
posted
Heh Heh. It's about time the light went on here. I have been using "charts" for months. Talkin' 'bout it just as long. L2 is coming. Be patient. Steve tells me it's a contract issue. Talking to Alan (head tech) yesterday. He told me new stuff coming soon with the "News and Filings" platform. They are very receptive to suggestions. The archiving of the "News" about a month ago is great for past DD searching. I work the site inside and out for great results. Anyone have any questions on it, feel free to touch base.
Ruff
------------------ Due Da Due......But Be Quick About It!!!!!
posted
Thanks for the replies. I don't use most of the features that I pay for on Ameritrade, and L2's I could live without. I will check out OTCCHARTS as well.
Posts: 132 | From: Chicagoland | Registered: Sep 2003
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