posted
Here's a few of my mistakes that hopefully other newbies can learn from. Never get too lazy to ck the candle chart before you invest. If you are a newbie , its best not to invest in stocks that have already seen a good bull run, like I did in APPI today. I invested w/o cking the candle chart. Also lets say you are starting with $1500 likre my acct. Never plop down more than say $200 in any one stock. In fact $100 should do nicely. If it goes down say 40%, you only lost $40. Had you invested $400...thats a $160 loss, which is what i took in APPI today. Tomorrow I have to sell and hopefully it will not open too low. I know it will open red as everyone will continue taking profits and working this stock back to a buy position of say .004's. Only buy stocks at the bottom. Why? Because most likely it will go up before it goes down.
Then when you see your $100 investment at a green profit, start looking for any peak to sell. The peak may be in the opening session, maybe at mid-day, maybe at EOD. Watch the vol and the graph. Don't get greedy. if you see a 50% gain, take it and move on to the next bottom stock. Also leave a small position in that stock, its possible the next day may see green and you can sell for a bonus.
-------------------- Do not invest on any of my suggestions Posts: 1215 | From: baton rouge | Registered: Apr 2006
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posted
Not look at ETIM Its setting itself up as a "Second bottom" the first bottom was in oct , after it bottomed it ran up several hundred % gains. Now its fallen back to it original first bottom, which means its a buy. .0012. Now remember for every tick, that's 8% gain or loss. Lets say you put in $100 tomorrow(Thursday) at .0012. If it ticks back to .0011, you lost $8. Now if it ticks to .0010, thats $16. No big deal. HOLD. If by friday its still at .001/.0012, hold til monday. If on Friday it ticks up to .-0013, .0014, .0015, .0016, now you want to sell. Friday PM is the big sell off place and so you can take green profits and buy back on monday AM. Its in a upswing cycle and most likely you will see green that week. Now what happened. Well you bought on WEnsday at .0012, by friday its at .0016, you made....4 ticks is 32%, thats $32 in your acct. Now monday you buy back at say .0016/.0017, then look for a place on monday afternoon or tuesday am or pm session to sell if green. If you buy at .0017, and ticks back to .0015, HOLD. Give it one more day. If opening tuesday is red, sell for a slight loss. If green, sell for yet another profit. Remember with micro pennies one tick is about 5%-8%. Rule is to sell if falls below a 10% loss. However if its a a bottom, you can extend that % to 20%. If you are buying with into a stock with white candles the last day or 2, then you can not afford to hold more than 2 or 3 ticks down, which is 15%. ETIM has ZERO white candles in the part 2 weeks +. So here you are buying with a much greater chance at seeing positive ticks up, and less of a chance at seeing red ticks down. IOW the risk factor for losing money is much less than a stock like APPI with lots of white candles behind it. APPI has a much greater chance to see red and ETIM has a much greater chance to see green. Laws of probability applies in these micros. Whats possible? That APPI will see red tomorrow on Thur and also Friday. News broke early wensday, now thats a "done deal". Sell on news. Whats possible for ETIM? The chances of probability is that it will see green on Thur and Friday. Why? There are rumors that ETIM has news comming, buy on rumors, especially at this bottom price. When news breaks, sell.
also once you are in and it starts to run, never buy on a upswing, you are in with $100 and let that ride its course.
-------------------- Do not invest on any of my suggestions Posts: 1215 | From: baton rouge | Registered: Apr 2006
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actually I believe the business is legit but by him running his mouth off it landed the company under a SEC investigation & it's on the grey sheets right now...was supposed to go to Nasdaq but instead it's on the greys.....I bought in at .95 went to $4.00 one day I didn't sell because they were predicting $15/share fell down to $1.99 then it was halted due to a SEC investigation.....now it's on the grey's and there is a new CEO.....
Here's another lesson:
Take your profits when you can get them...Protect your initial investment...
-------------------- ..just remember....Family is EVERYTHING!! Posts: 3944 | From: Rochester, NY | Registered: Sep 2006
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quote:Originally posted by paulbest: Only buy stocks at the bottom. Why? Because most likely it will go up before it goes down.
Then when you see your $100 investment at a green profit, start looking for any peak to sell. The peak may be in the opening session, maybe at mid-day, maybe at EOD. Watch the vol and the graph. Don't get greedy. if you see a 50% gain, take it and move on to the next bottom stock. Also leave a small position in that stock, its possible the next day may see green and you can sell for a bonus.
1. Don't always buy at the bottom depending on what your definition of bottom is. Just look for reversing patterns. I would say a good strategy is to buy when a stock breaks RSI 50 and sell around RSI 70 or 80 (or as you call it it's peak)
2. Don't enter a trade if it's "possible" or "likely". If you use candlesticks always "confirm" a trend reversal before entering the trade. For example if you see a HAMMER at the bottom of a downtrend, wait for the next candle to see if it will reverse and go into a uptrend or continue it's downtrend. That is just one example in candlestick charting there are others but you get the idea "hopefully".
-------------------- 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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The hammer, its like a short black candle, the next candle white, looks to be a very good possibility iof an upswing. Take ETIM. Its white, but I'm afaird if that one. Its too spooky for me as I already took a good hit.
The RSI 50. I'll have to look that up in the book, The Market Makers Edge. I can't grasp the tech stuff too well, i have a gut feeling mostly.
But i do know energy stocks pretty well. Mining also.
Thansk for the post.
-------------------- Do not invest on any of my suggestions Posts: 1215 | From: baton rouge | Registered: Apr 2006
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posted
October or whatever.. bought ETIM at .0016 rode it to .0065 and split 1/2. Rolled out into IGAI, took a profit and rolled back with a 185k buy on Tuesday at .0016 ETIM. I missed the fun down to 11/12, that was a surprise (a little). Still no matter. I have accumulated many shares and am on a free ride with ETIM at about quarter million shares. Fun Stuff on this one.
I like to pick and roll sometimes, especially at the eoy. Taxes you know..1099 December 31,2006..
-------------------- Bill Gates, Donald Trump and James Dean, Willie Nelson, John Lennon and Neil McCoy Posts: 1102 | From: Sometimes Honolulu, Sometimes Laguna Beach, today in the Valley | Registered: Aug 2006
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posted
A Hammer at the bottom of a downtrend can be black or white.. the color doesn't matter with a Hammer... just that the next candle confirms a beginning uptrend...
-------------------- 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
Don't put all your eggs in one basket but put enough in that you can make a decent gain.
I.E. you put 100 in a stock and sell for a 15% gain. Good Job!... Oops! Your transaction fees for the buy and sell together are 18.50!!!
-------------------- No longer eligible for government service due to lack of tax issues. Posts: 5178 | From: Up North | Registered: Dec 2005
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posted
I always figure the gain goal plus the percentage value of the in and out fees and raise the bar to that level or even a flat 17 to 18 percent threashold, that covers it too.
15% gain can be the goal but not the mark for action. Take all factors, group them together then configure action steps and you will off set fees,taxes etc...
-------------------- Bill Gates, Donald Trump and James Dean, Willie Nelson, John Lennon and Neil McCoy Posts: 1102 | From: Sometimes Honolulu, Sometimes Laguna Beach, today in the Valley | Registered: Aug 2006
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-------------------- No longer eligible for government service due to lack of tax issues. Posts: 5178 | From: Up North | Registered: Dec 2005
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posted
play at bottom is the bigest mistake yo can do. cause yo never new the new bottom ,when a new bottom is in formation you can lose a 50% or more cause the market is saying that this price is not correct. in the case contrary when a stock break a resistence thisv is the moment to buy,a new ceiling will form. begginirs search bottom and lose their pants. but like everything ther are exception sometimes a bottom can be good but you must know well the pick
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