posted
Well ok, Thanks for all the great info and advise.
I do have one question, Who sets the opening price?? The MM'S ? I see stocks with little volume and with little buying or selling pressure jump or drop a point or two the folloing day at opening for no apparent reason. Who decides this?
Thanks...
-------------------- "Keep your stick on the ice, we're all in this togeather!" Posts: 367 | From: AK | Registered: Aug 2005
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posted
yup, Market Maker, literally "makes" the market: they are allowed to profit for their firms in return for creating/maintaining an "orderly market."
posted
Thanks for the advice everybody... Which of these do you guys think will jump Tues, or Wed? QBID OXFV ITGJ AMED HISC BUGS PLNI IGTN any more? (I'm planning to research before investing, I'm only asking out of curiosity)
Posts: 40 | From: Pittsburgh | Registered: Sep 2005
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posted
Hey bgrance, here's my advice for you and it will help you if you follow what I did. I had almost $3000, and to start with, I invested a little in a company by looking at the chart, noticing that every once in a while it peaked and of course there was a buzz around the name. I’d just seen someone lose a lot and I thought, “What a loser—bought at the top”. So, I bought in after the peak thinking it would go up again. It slowly declined, and I threw more at it thinking that I was ‘averaging down’. I sure was. I was reading all the hype, waiting for all the news, clinging on to anything that gave me some hope that I’d made a good investment! I even watched on the sidelines as a group pump pushed the price of the stock back up to the point where I could have got nearly all my money out again. Why did I do that? I didn’t know about group pumps and I thought that at last the rest of the community had learnt what I knew all along—that my stock pick was awesome, and I was in there from the beginning and was about to cash in. Anyway, in the end I had all the $2600 invested and after months, I got out with $200 knowing at that point, I’d lost the bet. So, picked another ‘guaranteed’ winner on a day in which it was breaking out. Bought for $300 at the top and then it plummeted. Looking at it now, it is losing 75%. It needs to rise 300% to cover me. And finally, picked one for the remaining $200 from reading the threads here after someone did their dd and I followed like a sheep. In fairness, I consider it my stable stock—it’s only down 30%!!! Best lessons I’ve learned since I was at school—all my own fault entirely. What am I doing now??? I’m reading, reading, reading and more of it. I’ve read these and other boards for months now watching all sorts—it’s fantastic and you could do yourself a favour by reading along for a while. I’m intending to read some more books for a while, whilst I accumulate a bit of cash for when I’m ready. I’m in no hurry—there will ALWAYS be another pick as good as the one you just missed. Heck, the first thing I learned about was trending. Had I known what I read there in 2 pages, I never would have gone near the stock I did—what a clown I was!!!!! I didn’t protect the only asset I had, which was my $3K. I’m now setting up my rules for trading. So here’s the rub. Pick a stock from some hype here or somewhere else and throw all your money at it. You’ll lose most of it. When you’re at, say, $180, you might give in and go back and start reading about charts, dd, oscillators, volume, etc., etc.. It’ll do you the world of good. And, if, by chance, you strike lucky and make some money on your first few picks, you’ll believe you’re invincible—which, at that point, you’ll be most vulnerable, UNLESS you’ve learned why the picks you chose rose in value. Take your time. Accumulate your knowledge first and get your mindset as if you’re going into business. I’m doing that now. I don’t know how it will pan out, but I know I will not allow myself to do what I did last time. Good luck to you. I hope you do well and why you do well! Of course, I do realise that you’ll ignore this, because you’ll think that it couldn’t happen to you.
Posts: 3 | Registered: Sep 2005
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posted
I am also 16 and would like to start investing in stocks, but i am having a hard time understanding how to read and determine what a level 2 quote is. I would like to be a day trader, and to start out with penny stocks.
Posts: 46 | From: PA | Registered: Dec 2005
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posted
BijanH, make sure you read the post above by gamblit twice gamblit's experience is not unusual.
You have to remember that penny stocks are already the super-underdogs of the market, and they are penny stocks for a reason. This is doubly true of those under 10 cents per share, and when you can spend a penny and get more than one share, you really need to watch out.
My advice, if you're really new and don't have a lot of money, is to play in the 5-cent to 50-cent range. Those companies usually have SOME level of credibility, at least, and typically they don't have 5 billion shares on the market. Remember, when your stock is worth $.0004 per share, you should really be asking: Why did it get here? and is there really any chance of it becoming a much, much, much better company - and thereby raising it to, say, one penny per share?
Too often, these companies with prices under a penny are that way for a very good reason: they aren't really going anywhere. And if you play with those stocks, you'd better know your stuff better than most.
One final piece of advice: it's all about percentages. If you put $80 into a stock that is $.0005, or $80 into a stock that is $.12, when the stock goes up by 15% you make 15% on your $80. So think in terms of percentages and not shares owned. Hope that helps you and good luck!
-------------------- ~-------------~ Don't sweat me. Posts: 52 | From: Delaware, USA | Registered: Dec 2005
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posted
My advice is to read up on toxic financing and use financial reports to determine if the company is using toxic financing. If they are, you're going to see the PPS do nothing but drop. Pink sheets I'd stay away from. If you see a pink sheet stock posted on here by someone that hasn't had a 10% increase yet, you could maybe throw money into it and bail at the first sign of a 30%-50% increase, but that's up to you. It'd be risky to do.
I've found that if a stock has already had a run from .0010 or lower to .02 or higher, it's best to steer clear of it. Almost every single stock that has had that kind of a run from .0010 to .02 is toxic-financed. Notable examples: QBID, PLNI, GZFX, etc.
You're only going to see these stocks drop in price from here. Just don't buy at the peak and watch the PPS drop for three days in a row of 10% or more and still stay in the stock. It isn't worth it.
-------------------- As a forum poster, it is ironic that you are held to a higher standard than a Pink Sheet CEO. Posts: 676 | Registered: Apr 2005
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gamblit's experience is not unusual.
