Hey, I'm a newbie trying to invest in small cap and penny stocks. I've been searching message boards looking to meet new people and learn more and more. Do people here make their own picks or do you guys get help? Thanks for looking at my post and thanks for the help.
[ January 12, 2008, 14:36: Message edited by: Bob Frey ]
Posts: 1 | Registered: Jan 2008
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First off, don't get in a hurry to start trading. Invest in learning...first and foremost *not* about what you may be thinking (good picks, etc) but instead focus on Yourself... There's several different styles of trading, replete with various techniques and strategies. So start by papertrading, following various picks and keeping note of possible entry and exit points. (Never enter a trade without a plan for your exit.)
if you want to invest, by that i mean hold for more than a year for the long-term capital gains tax break, which is significant?
then go mid-caps or better.
after watching half a dozen successful penny stock (out of thousands) go to good numbers i've also watched them tank again...
the market is not your Momma. you gotta earn every penny.
the most successfull investing i've done is buying my local power co's directly from them in dividend re-investment plans...
they just keep growing an growing. and it's such hassle to sell off, that i never do it on a whim... and witht he utilites? thats a really good thing. the younger you are? the more i recommend this strategy.
-------------------- Don't envy the happiness of those who live in a fool's paradise. Posts: 36378 | From: USA | Registered: Sep 2003
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posted March 13, 2007 18:21March 13, 2007 18:21 ________________________________________ Get out of pennies!!! Just warning you.... stick to daytrading stocks on big boards (NASDAQ and NYSE)... and if your new to trading i would suggest swing or position trading over daytrading... below is a list of books for both (they can all be bought cheaply on amazon.com used) :
A Beginner's Guide to Day Trading Online by Toni Turner www.toniturner.com (new edition just came out)
A Beginner's Guide to Short Term Trading by Toni Turner (for swing and position trading which i recommend)
How I made $2,000,000 in the Stock Market by Nicolas Darvas www.darvastrades.com (a good complimentary website to his trading style since he is not on this earth anymore to have his own official website)
Trend Following by Michael Covel (some of the biggest traders in the world are Trend Followers including John Henry, Jerry Parker, Ed Seykota, The Turtles, Richard Dennis, William Eckhardt, Bill Dunn, Keith Campbell etc.) www.trendfollowing.com
Reminisces of a Stock Operator by Edwin Lefevre (about the legendary Jesse Livermore and how he thought about trading)
Market Wizards by Jack D. Schwager (about other traders mindsets)
New Market Wizards by Jack D. Schwager (same as above) =========================================
I also add to the list Toni Turner “Short Term Trading in the New Stock Market”. Now reading “The Complete Turtle Trader” by Michael W. Covel about the Richard Dennis story. Pretty amazing. Oh and BTW - most are available through the public library system. I know - I'm cheap!
-------------------- All post are my opinion. Do your own DD. Who's clicking your buy/sell button!? Posts: 7761 | From: Virginia | Registered: May 2006
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Small and nano caps (pennies) are very volatile. They can fluctuate wildly in a days trading session. Like the above poster said, you trade pennies for the short term play - not hold them. There are exceptions - namely shell stocks - that are worth holding onto for the long term. These are stocks who have no operations but are listed on the exchange.
Many private companies will buy these shells out to go public and create skyrocketing gains. I've owned scores of these for some time. The biggest one to come through for me was LFZA. I scarfed up a million shares of this at .0008 many moons ago. I sold them all off at .42 and .56 respectively! (averaged up at .49 per share). You do the math. It went all the way to .82 before she tanked. Grrrrrrrrr!
Anything under a dime is subject to extreme manipulation by the MM's on the trading floor(some of whose reps post regularlyin this forum). Forget candlesticks, indicators, and numbers when dealing in this arena. Those stocks only move when the MM's let them move. And usually the opposite of what you'd expect. After all, the MM's make their money by taking YOURS! That said, place your bets carefully there.
I only have about 6% or 7% of my entire portfolio in the penny and sub-penny market. The rest are in solid companies on more accountable Xchgs. Lately I've been getting more and more out of the market in general and buying up gold and silver .999 bullion . Also bags and bags and bags of old silver dimes & quarters from the banks and dealers while they are still available. About half of all my assets are now in same. I might even liquidate more stock to that end. I think our economy is heading for a major collapse in the near future and precious metals will be the only vehicle worth owning if it does.....
Posts: 669 | From: Gouldsboro, Pa. | Registered: May 2006
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