posted
ok im starting off at around 450 dollars. im new to this but not clueless. I am wondering why is it that everyone doesnt recommend under dollar stocks.
i know that they are more risky,but i mean with only 450 dolalrs that is the only way i can actually make anykind of reasonable money.
also like i ve been reading this bullitin board for the past couple days, mostly the "hot stocks" forum and every stock that was recommended, people have infact made money on it if they bid on it that day. maybe im missing something.....
anyone have any advice........ any help woudl be greatly appreciated.
...also im home for winter break till january 3rd, so im planning on avid trading in these two weeks.
[This message has been edited by kyle0k (edited December 18, 2004).]
posted
pick up "a beginners guide to short-term trading" by toni turner, read the whole thing, then trade paper money, then actually use your money to invest in stocks. if your going to just go by whats said in "hot stocks" then it doesnt seem like you have alot of experience!
Posts: 610 | Registered: Dec 2004
| IP: Logged |
posted
yea, i truly dont have alot of experience,but i am starting off with 900 dollars not 450 that i said b4.
Posts: 111 | From: cleveland,oh,USA | Registered: Dec 2004
| IP: Logged |
posted
Kyle, I am fairly new to trading, but I have done my homework, reading as much as I can. I have heard alot a people talk about the book Robg suggests. This will be my next read. Just don't jump in until you have a good idea of what is going on. Remember, there is no hurry, opportunities happen all the time. Let me ask you, what broker are you using?
Posts: 20 | Registered: Dec 2004
| IP: Logged |
posted
Kyle , do not think that everyone is making money that you see posting on "hot stocks" forum.. most if not all are trying to "pump and dump" the stocks they are currently holding... and most if not all of those stocks are in the under $1 range.. they buy those stocks because they can buy thousands if not hundreds of thousands of shares at pennies or less then pennies to the dollar.. that is the reason i do not recommend stocks under $1 especially the micro stocks that are under a penny per share.. I only recommend stocks in the $1 to $5 range.. if and when you have a substantial amount in your account like $5,000 to $10,000 then you can probably dabble in the under $1/micro stocks... it wont hurt your bankroll if your careful and dont put all your money in such stocks.. if you do now believe me you will see your bankroll dwindle since you only have between $400 to $900 right now.. build up your bankroll slowly with $1 to $5 stocks.. right now i buy round lots (100 + shares at a time ) .. with $900 you can buy let's say stocks in 8 companies at 100 shares each.. and if they go up $1 in one month or less you have another $800 added to your bankroll .. does that sound bad? i dont think it is.. because then you have about $1,700.. then with the $1,700 you can stick with 100 shares of companies or buy 200 shares of companies.. anyways like the others have said it doesnt sound like you have much trading experience or know enough about it and like i have recommended countless times and others have already .. read all you can but read especially Toni Turner's A Beginner's Guide to Short-Term Trading... and Swingtrade or Position trade instead of Daytrade.. it will save you and make you more money in the long run till you have more trading experience to tackle the micro stocks and daytrading in particular... hope this helps...
Posts: 4669 | Registered: Mar 2004
| IP: Logged |
posted
thanks for the advice everyone. i started to read the book "Richard Wyckoff - Stock Market Day traders manual"
but yea i guess i can start of with 1-5 dollar range stocks. but i dont know where to find a place where they can recommend stocks at that price3 ,all the people around recommend lik stocks iudner a dollar.
but i see what ure saying. b\c in a month i can make the 500 bucks or something in the 1-5 dollar stocks then leave the 900 i have in the 1-5 but with my 500 profit risk them on the under dollar so its no loss either way. smart thinking.
posted
oh and for those who asked. i have etrade. which sucks b\c its 20 a trade but my dad doesnt want to fill everything out to switch to another broker.so im stuck with what i got.
Posts: 111 | From: cleveland,oh,USA | Registered: Dec 2004
| IP: Logged |
posted
Listen to what the people here are saying, micro pennys are VERY risky. You could lose all your money on one trade. Remember 30% profit is the same no matter if you buy a 100.00 dollar stock or a .0001 stock but you can assume that if a stock has been around long enough to stay at 1.00 or above it's most likely a real company. You said that it seems like eveyone on the board is making money but remember for every buy there is a sale so someone lost money on every trade.
Posts: 1169 | From: Pollock Pines Ca | Registered: Feb 2004
| IP: Logged |
posted
yea i know i should invest in the above dollar stocks to not risk alot. i was thinking about scos....... what do you guys think.
also i never meant to invest in stocks that are like under 50 cents or soemthing, i was really talking about the 50cent -1 dollar range before. because under 1 cent stocks are just crazy,u can lose your money in lik a second.
posted
I looked at the TA for SCOS.. I wouldnt buy this at the present time... it's above its 20 day Moving Average but below its 40 and 60 day MA... it's last candlestick formation on friday was a HANGMAN which is not a very positive sign... its RSI and OBV are pretty much flat lined and its volume on friday was not very high.. I would expect it to go down on Monday though i could be wrong.. anything can happen but im just translating what the TA i use is saying to me <shrugs> ... as for trading in the under $1 stocks.. i broke my own rule when i bought CNR but its doing fine so far.. bought it at .85 and its currently at 1.21... I should sell it though because its RSI and OBV are on a slight downtrend.. but I will let my stop/loss to take affect to exit me from my position...as for finding stock recommendations that are between $1 to $5 you can put your own thread on the "HoT STocks" forum and get recommendations... but take my advice do not buy the stocks recommended just because its being recommended... write down the stock symbols and do your own DD/TA on those stocks.. most of the suggestions i dismiss and dont buy but once in awhile i get 1 or 2 good suggestions that meet my criteria and i buy like CNR which i got from the HOt Stocks forum through my own thread i put on there.. another suggestion is dont rely on anyones recommendations and find your own stocks... you can use a site like www.smallcapcenter.com... as for your account with ETRADE... tell your father to transfer to Choicetrade.com .. print out a page of both broker's commissions and show him why... im sure he will come to his senses sooner or later..
[This message has been edited by Machiavelli (edited December 19, 2004).]
posted
my goal by the end of today or tomarow is to know everything you just said there
thanks tough that is alot of help,even though i didnt understand alot of it. like TA and DD.
i think right now im gonig to look through and go through teh "chart school" online.
andas far as etrade goes,he understand and is all for making an account at another broker but at the same time he said hes too busy" to do all that paperwork. b\c there is alot of paperwork to be done.
UBBFriend: Email this page to someone!
Printer-friendly view of this topic
