I am new to this group and also new to the penny stock world. Please advise how successful you have been with the advise of other group members of this group? share your experiences and also give me some investing tips considering i am a novice. thank you all in advance for your time.
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1. Dont believe what you read here, do your own DD 2. Stay away from WTVN, WNSH and QBID
Pinksheets.com is your friend. Always check the outstanding shares of a stock your interested in and look if they have done past reverse splits. Those are 99% of the time very bad!
-------------------- If you made money, it was a good trade
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posted
Welcome Racanelli.... some tips people already gave you and some ill give myself:
1. Read and teach yourself trading before you enter the market... below are book suggestions
2. Do your own DD and do not buy on tips, rumors, advice etc... most who give tips are holding the stocks themselves and are pumping it so they can dump it especially if it's been a loser for them...
3. Always put stop/losses on your trades as soon as you enter your trades if possible
4. Don't bother with pennies especially micropennies if your a beginner... and if you do, do not put your whole bankroll in pennies.. perhaps only 1/4 of your bankroll ... stick with Big Board stocks
5. Do not daytrade if your a beginner... you can make same profits swing and/or position trading...
6. Do not use so many oscillators/indicators over your charts... choose one or two of them , master them and stick to them... RSI and MACD works well for me...
7. Master "reading" volume signals
8. Emphasize on Technical Analysis over Fundamental Analysis... TA tells you when to enter and exit a trade but FA doesnt.. FA only tells you the financial health of a company or economy... doesn't tell you when to enter or exit a stock...
Well that is all i can think for now.. im tired today so not thinking well. below are the book suggestions:
A Beginner's Guide to Short Term Trading by Toni Turner www.toniturner.com
posted
Welcome to Allstocks, the best penny site in cyberspace. (And it's free to boot!)
I second what Mach posted above with my own spin.
If you play stock without knowing what you are doing you are in for headaches. If you play pennies without knowing what you are doing you are in for some sleepless nights.
No matter how much you study (which you SHOULD) when you start you are going to feel like you don't know what you are doing. So expect some headaches and sleepless nights.
Paper trading is a great way to make mistakes without hurting yourself. Consider it.
Buy low, don't chase a stock for any reason. If you don't get in shrug your shoulders and move on. There is always another next big thing to find.
Don't try to get out at the top. Sell at the first sign of weakness.
ten 20% gains are worth 200%. 20% gains happen every day. 200% gains do not.
Only trade with settled funds if you are working with a cash account.
Don't believe anything another person tells you even if it is someone you trust. Check it out for yourself. Also, don't blame others if the stock they picked does not perform as expected. The choice to get in was yours.
And the two Biggest rules:
#1) Protect your capital #2) Have fun! It's only money. LOL
-------------------- No longer eligible for government service due to lack of tax issues.
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quote:Originally posted by The Bigfoot: ten 20% gains are worth 200%. 20% gains happen every day. 200% gains do not.
Decided this was incomplete. Ten 20% gains are worth 200% if you don't compound. If you compound your earnings ten 20% gains are worth approximately 520%!
BF
-------------------- No longer eligible for government service due to lack of tax issues.
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Once you make some profit in a trade get out. There is no such thing as leaving money on the table. If you get out of a trade with profit you did awesome. If you hold out for the BIG WIN you will only find yourself holding the bag when others jump out and take their profit.
You should research each company carefully before buying in. You should also have an idea of what your buy-in price is and what your exit will be. If you plan this ahead and follow thru you will be more successful than those you play it by ear.
GL to you!
-------------------- If you made money, it was a good trade
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quote:Once you make some profit in a trade get out. There is no such thing as leaving money on the table. If you get out of a trade with profit you did awesome. If you hold out for the BIG WIN you will only find yourself holding the bag when others jump out and take their profit.
Truer words have never been spoken.
OP, if I would have asked the questions you are asking four months ago, perhaps I'd have $977 in profits from STTK, $300 more in profits from XKEM and $698 more in NDOL. But I don't. And in fact I've lost nearly 10% of my capital.
Heed the warnings and advice above.
Jo Been there, done that...unfortunately
-------------------- "Great Day for Up!"....Dr. Seuss
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posted
raca - Be very careful entering into this game. I've been posting for well over a year and I am just barely starting to feel confident that I know what I'm doing. I was caught up in the big QBID scam however, so my attention was diverted for much of that time. Lesson - NEVER FALL IN LOVE WITH A STOCK
Anywho, take the advice from everyone about learning about the market. Then realize that a lot of what can be used to predict a stock like Microsoft can not be used to predict a stock that is only trading for a few pennies or micropennies. These things are extremely volitile and do not follow the same rules. Take your profits when you can. If I had the same mentality I do know a year and a half ago I would probably be close to having a million in my account. I can tell you i'm no where close to throwing distance of that number now. Don't get greedy. Matt
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posted
Thanks to all of you for the replies and tips....keep them coming please. learning a lot....is that true that I can not trade penny stocks (on pink sheets) from scottrade $7 trades? is there extra charge fm scottrade for stocks priced under $1. let me know.
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posted
thanks TEX...need some clarification though... whats "L1"? whats L2? "scotties has no stops on BBs or pinks?" what do you mean by that?
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L1 service will tell you the bid/ask of a stock at its current point. L2 will also give you the current bid/ask but will also tell you the lot size as well as where the other market makers are stacked with their lot size.
No stops means you can't place a trailing stop loss or a simple stop loss sell order on stocks trading in the BB's or pinks.
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quote:Originally posted by racanelli1979: thanks TEX...need some clarification though... whats "L1"? whats L2? "scotties has no stops on BBs or pinks?" what do you mean by that?
You seriously need to read a book if you do not know those basic terms... scroll up for my book suggestions.. do not buy any stock right NOW!! til you educate yourself about trading through reading books... and definetly do not daytrade...
-------------------- Let the world change you... And you can change the world.
posted
Machiavelli is correct. Until you can engage in a conversation with the know how needed, you shouldn't engage in trading.
I will say this though. No matter how many books you read, everything changes when your own money is on the table. You should still read and learn how the game works first, but your education doesn't end there. The market is going to slap you around in the beginning and teach you a lesson or two itself. There's not one person here who has not lost money trading.
Also, if you decide you want to trade more fundamentally than technically I strongly suggest you still learn how to trade technically. A lot of playing a stock is determined by your entry position. If you can enter a trade at a good position, then taking profits will come much easier.
Example, a stock is currently at .60 and you see that it has room and strong potential to run to .80. You enter the position. Eventually it may hit .80, but stocks don't go in one direction forever. More likely, the stock will fall to support and rally from there. So when you entered at .60 the stock dropped to .45 and then rallied to .80.
Besides the opportunity of playing a stock from .45 to .80 and earning a greater percentage, you could also have taken profits earlier. The profits of buying at .45 and selling at .60 are 33.3%. That is the same as buying at .60 and selling at .80. 33.3%. If you bought at .45 then you could have made your 33% and gone on to another play. There is no guarantee the stock would run to .80, so if you bought at the high of .60 expecting it to rise to .80 then you just bought at a new resistance level. The stock fell to support at .45 and may not break .60 again. If you bought at .60 you might only be able to exit the stock even if you're smart enough to see that it has stalled at .60.
Both sides of a stock should be known before entering a position. Why did I type such a long response when raca didn't even ask anything? Matt
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posted
Perm and Mach, appreciate your responses and I am getting used to the terms used on this BB little by little. please bear with me though. The research from what i know so far is two fold: technical perspective and management/operations perspective. I am going to be few books to learn how to day trade and how to do my own DD.....would you recommend i do that? pink sheets are risky with high reward potential but i will need some time it looks like to learn these support and fall positions as well as the resistance points....let me know.
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posted
for the love of god... don't Daytrade!!! lol you can make just as much money swing and/or position trading.. as for RESISTANCE and SUPPORT... not difficult to learn.. basically Resistance is just the price a stock won't go any higher from... and support is the lowest price it won't fall through... so basically imagine a ball bouncing off the floor and ceiling of your house... a example would be if you buy a stock at let's say $5 a share and it bounces up and down between $4.75 and $5.25 without penetrating either price for days/weeks or months... $4.75 is the SUPPORT and $5.25 is the RESISTANCE... but sooner or later the Bulls or the Bears will make that stock penetrate either price for a downtrend or uptrend.... if it goes below $4.75 then that price is now the new RESISTANCE or if it breaks out of RESISTANCE($5.25) then that is now your new SUPPORT price... all this you can learn in books with better visuals then my writing... but by just looking at a chart you should be able to pinpoint SUPPORT/RESISTANCE ... but anyways start off with the Toni Turner book i recommended that will get you up to speed on the basics and such..
-------------------- Let the world change you... And you can change the world.
posted
I can't improve on the advice here--especially the books and paper trading. I will add one thing--don't bet what you can't lose. No matter how much preparation you do (and you should do a lot), as permanentjaun pointed out, it all changes when you have your money on the line.
When your money is in the game, your emotions are too and it will take some time to learn how to make good decisions instead of the costly mistakes your emotions want you to make.
-------------------- Me Trade Pretty One Day.
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posted
When you start trading, dont forget not to trade with emotion, & dont get too greedy
No matter what you hear about a stock on here, how good it sounds, or how exited & pumped up you can get over the possible gains, research it first! Dont just jump in because others say, "hey, this will be to $X.xx by this date". Although sometimes people get it close or are right it is purely speculation.
If you find yourself with some profits on some stocks & you can decide, or dont know whether to sell or hold... SELL. Like I said, dont get too greedy. Take profits when you have the chance & dont look back. Dont get too upset over $ you could of had. When your holding the bag & down %50 because you wernt sure what to do, you will be alot more pissed off than only making %20 instead of %40
Also, dont go chasing stocks as they go up in price. If it gets to high for your likings, or you dont know. just let it go.... especially with microcap stocks. When it comes crashing down you'll sure as hell be glad you didnt.
hope this helps some. Also. if your unsure of something you cna probably look it up at Investopedia.com (bookmark it)
-------------------- "Money, so they say Is the root of all evil today."
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posted
Big board stocks are different then microcaps... in big board stocks you should let your profits ride and not get out of a Uptrend till if and when the Trend is broken and a Downtrend begins showing it's ugly self... In Microcaps/pennystocks you should take your profits quickly but not in big board stocks... Big board stocks should be bought when it is in a breakout of Resistance... some professionals buy in the middle of a uptrend instead of the beginning so i have to disagree with Js on that... and like i suggested earlier... to not let your emotions (fear & greed) make your decisions for you... use stop/loss orders... either actual ones or mental ones...
-------------------- Let the world change you... And you can change the world.
Daytrade - Day trading means getting into and out of a stock within a single trading session. Most daytraders follow momo (momentum) plays and are in and out within a one hour period. (I am not sure that this is the trading style that you meant to refer to when you said daytrade in your earlier post.)
Swing trade - Swing traders use Technical Analysis to find what they believe to be the start of an uptrend in a stock with growth potential. Swing trade positions vary in time length depending on length of trend but for pennies rarely more than a few weeks.
At this point continued urging or cautioning by others will be minimally effective at helping you learn. You should make a decision as to the next step.
A) Read books, websites, etc. and learn the basics. Feel free to come to us with any questions about specific things you are having trouble understanding. (Recomended)
B) Start an account and begin to trade and learn from the school of hard knocks. More than one trader has done it this way but just about all of em will lose money for the first couple years.
BF
-------------------- No longer eligible for government service due to lack of tax issues.
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posted
Thank you bigfoot, Mach, JS, Kermit for your help. I am picking up toni terners book today and just opened up account with scottrade (i just noticed choicetrade offers 5 dollar trades so i might open one there as well just for trading purposes....heard scottie has better tools for researching..suggestions here are also welcomed). I really did mean the swing trading and not the day trading....i didnt know they were different...anyway i also noticed scottie charges like 1/2 percent in addition to 7 dollar for each transaction for pink sheet stocks....how do you calculate the cost of your stock in this cases..?
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posted
I just have to say this, right after reading repo's 2 stock picks, i went over and took a look at frpt - i literally said - jesus out loud - the thing has done nothing but go up, and has gained 3 dollars this month alone. Then I look at ency - I'm new, but I have yet to see a stock plunge 4 times in one year . I hope repo had his money in the right stock! or at least that he cashed out after one of ency's drops --- sorry to be off topic, but I couldn't resist - frpt impressed me - but there are always stocks where you - I wish I was in it at the beginning of this year (I've been saying that about apple (aapl), it's gained about 100% since the beginning of the year).
Funny, this forum as far as i can tell is territory that the pumpers never enter. bought a couple of pumped stocks recently without enough of that DD (happens when you're like, I need a stock for tomorrow, and I'm really tired!)- almost ate up the small profit that I've made so far...
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posted
No pumpers on this board? LOL this board is full of them.. you should of been here when QBid was being pumped and all the suckers held on to it.. blind faith i tell ya...
-------------------- Let the world change you... And you can change the world.
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