posted
Hey guys, me and my buddies recently got into trading stocks and we are having a great time doing it. I however am interested in upping the risk and i want to trade penny stocks and hopefully make some money. I don't expect you guys to reveal your secretes but can you guys help a man out and maybe mention on what kinds of research you do, what ratios u calculate, what you look on the financial statements, and how news influences your decisions.
Once again, research methods and their effectiveness is what i'm looking for here.
posted
IMHO..News doesn't effect the pennies an awful lot...this isn't always the case...but it seems the majority...when "reading" the news looK for words such as merger, dividends and contracts...but this won't always do the job...seems that most "plays" are going to be "momo" plays...and bounces...it is what the majority of day traders look for...hence...you will have movement...also...the "MM's" are going to be the real movers...so look for accumalation... You can't "play" these like the "higher" trading stocks...IMHO...GLTY
-------------------- #1 Rule: Protect your capital! #2 Rule: Never fall for the BS on the boards!
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posted
10 of Swords writes, "News doesn't effect the pennies an awful lot." Well, the adage is, "Buy on rumor, sell on news." Presumably, one would be selling into a news-driven run.
However, with oil & gas and alt fuels, we are in a "bubble" in which a PR perceived as "good" can fuel hot runs...lottsa dough made just this week...
As 10 says, you can *not* play these like big-board issues... On most plays, by the time you calculate a ratio? you're in too late...
There are rare exceptions...but in general TA more valuable than FA, by degrees of magnitude
-------------------- Nashoba Holba Chepulechi Adventures in microcapitalism...
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posted
guys, thanks for such great responses, but i dont understand what makes a penny stock jump in price... like what factors play into the huge price inclines and declines?
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posted
something (an event such as PR or widespread perception of a "hot chart") triggers more peeps to buy than sell. When demand is high enough it runs; lottsa sells, it falls. Also, MMs trade for their respective firms--when they want one to go for their profit, they'll encourage a run.
-------------------- Nashoba Holba Chepulechi Adventures in microcapitalism...
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