First off I am new to Penny Stocks, I have a relatively small amount of money and are looking at Penny stocks because of their high risk.
Anyways I have been doing some observing over the last month or so and have come to somewhat of a conclusion I would like people to guide my thought process.
Basically it appears that penny stocks move when news comes out or on forums when a large amount of people buy in. It seems that the company financials don't really matter; all that matters is what is everyone going to buy. I have been waking up early to check out the first forum posts of the day, to get "in" before everyone else.
That is my "idea" so to speak I would appreciate if I got some feedback on it. Also any tips on getting "In" on penny stocks before others. I know this may seem like a general question but any feedback is good.
posted
there are a number of ways to play pennies...
Longs, most of the people around here are longs, which mean they buy a stock and hold it long term.
the best way to play for me is to stay in cash and just jump in to stock that are running...thats the way i do it... the group i am in alerted on amre at .02 cents.
Posts: 1070 | From: louisville,ky,usa | Registered: Oct 2004
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posted
When people buy a penny stock for the long term do they buy it hoping that News or forum hype will eventually come? What causes them to buy any specific stock in the first place?
Also isnt "Pumping and Dumping" what happnes to the majority of penny stocks.
Lastly im looking at QBID and it appears ot be very predictable. It sounds too easy to buy at 0.0021 and then sell at 0.0022. Am I missing something is it that the bid and the ask ore unavailable?
posted
dont even go into Qbid... anyways another definition of going Long is not necessarily holding the stock long but buying a stock in anticipation of it going up in price whether you hold it for minutes, days , weeks, months or years... as opposed to going "short" which is the opposite and your anticipating the price going down... as for what causes me to buy certain stocks.. i tend to do technical analysis so i tend to look for patterns or conditions that repeat themselves that indicates the stock will be going on a uptrend... as opposed to fundamental analysis where you look at the overview of a company's and/or economy's health... a combination of both is best since TA gives you entry/exit points and FA gives you the health of the company...
-------------------- Let the world change you... And you can change the world.
Ernesto "Che" Guevara de la Serna Posts: 4669 | Registered: Mar 2004
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posted
as opposed to going "short" which is the opposite and your anticipating the price going down..
you here about shorting all the time but for me and you the regular guy its not possible to short a penny. The normal invester with a margin account can short big board stock over 5 dollars... and what that means is that you sell 100 shares of ford which belongs to ameritrade (or someone else) and your betting that the price will fall.. then you buy it back and replace the shares you sold....this is done in pennies by the market makers....not possible to do for us.
the best two ways of making money in pennies is channeling where a stock cycles out and back (take a look at ptsc) 16 year old penny company.
bottom busting cnes is on its bottom right now so if you buy it you will make money in the next 3 months...
day trading pennies (this is tough but its what i do.)
Posts: 1070 | From: louisville,ky,usa | Registered: Oct 2004
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quote:Originally posted by blueranger: as opposed to going "short" which is the opposite and your anticipating the price going down..
you here about shorting all the time but for me and you the regular guy its not possible to short a penny. The normal invester with a margin account can short big board stock over 5 dollars... and what that means is that you sell 100 shares of ford which belongs to ameritrade (or someone else) and your betting that the price will fall.. then you buy it back and replace the shares you sold....this is done in pennies by the market makers....not possible to do for us.
the best two ways of making money in pennies is channeling where a stock cycles out and back (take a look at ptsc) 16 year old penny company.
bottom busting cnes is on its bottom right now so if you buy it you will make money in the next 3 months...
day trading pennies (this is tough but its what i do.)
ahh i know what shorting is and that its not possible with pennies.. i just used it as a example to explain the opposite of it which is going Long.. you had indicated to him going Long is holding a stock for a very long time which isn't true... it can be held for any matter of time whether minutes, hours, days, weeks, months or years... Long just means you think the stock will go up instead of down in price...
-------------------- Let the world change you... And you can change the world.
Ernesto "Che" Guevara de la Serna Posts: 4669 | Registered: Mar 2004
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