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1/5/2009
Monday morning
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| if people are hyping a stock about coming news and you buy, sell when
the news is released because everyone else will. The market makers also
to short penny stocks. They are the only ones who can. Feel free to
ask any questions. There is alot to learn about pennies. Doesnt matter
how good a company looks pennies just dont react like regular stocks so
you have to learn the timing. |
| If youre new, you really shouldnt invest in ANY stocks just
yet. I know thats not what you want to hear, but the reality is that
stocks are risky, and penny stocks are expecially risky.
The best approach is spend the time and effort necessary to learn
how to make your own stock picks. It is almost never a good idea to
buy a stock based solely on the recommendation of others. You can
follow this group for a while, and pick up on some possibilities, but
you should always do your own research on any stock that you might
consider buying. |
| Rick Garrett, N9GSU wrote:
Good afternoon, all....
Im new to Penny Stocks, and wondered if anyone could recommend any good
books, magazines, or websites that specalize in penny stocks...most of
the material Ive seen deals more with general investing and gives penny
stocks just a quick overview, and Id like a bi more in depth
information. Also, I cant find anyone in my town (Muncie, Indiana)
that handles Penny Stock transactions....any ideas?
Thanks in advance,
Rick |
| i would suggest you start out with NASDAQ stocks, not NYSE and not
OTC:BB stocks, preferrably in the $7 - 10 price range. these have
enough life in them to keep a new trader interested, but tend not to
vary so much that you get wiped out in a single day. the higher a
stock price, generally the less it will change in the same amount of
time, and vice versa. if you want to start really cautiously you
could buy a few shares of a well-known NYSE stock and just watch what
it does to you. pure paper-trading wont get your juices flowing like
real money on the line. day-by-day changes of 5% are nothing, 10%
arent much. many penny stocks change 20-40% in a given day,
sometimes several hundred percent. often you will see that a stock
has closed down 5% but what you wont realize is that the stocks
price has varied by 50% over the day. you have to watch this stuff
and learn how it works or, simply put, you will lose money. if you
buy a stock and it immediately goes down 5%, that means yo. |
| The #1 and most important rule is not to buy a penny stock if it has
gone up big for 3 days. It is ready for the profit takers to come in and
the price will crash. For instance if a stock goes from .20 to 1.00 in a
few days dont get into it because you are going to be lunch for the
profit takers. You will see all kinds of people talking about it going
to $2 but 99.9% of the time it is going to dive. But once a stock goes
to $1 and starts its selloff you can expect it to selloff for 5 to 8
trading days then you will get a nice 40 to 60% pop up but the profit
takers will drive it down again. Alot of times the price will be down to
50 after only 2 days of the selloff and most people think it is time to
get in. Its not. It will slowly drift lower and then trade flat for a
couple days then pop back up temporarilly. Look at 1 year charts of
penny stocks to get a feel of what Im talking about. Never hold a penny
stock long because they tend to issue more shares to bring in cash and
the price. |
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