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1/5/2009
Monday morning
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| 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. |
| One of the problems with penny stocks is the lack of reliable public
information. When information on a company is at a premium, the
inevitability of manipulation is certain. Many of these companies have no
real track record, much less any chance of turning a profit. If you insist
on investing in micro-caps, be sure to find out if the companies that you
are considering have registered their securities with the SEC and./or state
securities regulators. You can find a listing of state securities regulators
at http://www.stockzoo.com/Html/Detailed/1272.html |
| #3- Price gains in penny stocks is almost always due to hype.
newsletters and message boards start pushing a stock and the frenzy
starts. Once the frenzy is over it will crash. Penny stocks generally
only go up for about 3 days then crash. Look at past charts to get a
feel of the rise and falls. if someone is hyping a stock check the 1
year chart. If it has already gone up a couple hundred% in the last few
days it is to late to get in no matter what they tell you. They just
need you to get in so they can get out. If you can get in at the
beginning of a hype then jump in and ride it. |
| Since this is your first time buying penny stocks i am going to give you
a winner. It is MKII. I posted on the penny-stock discussion board all
the info. If you get in now you are guaranteed a great profit then you
will have some money to try pennies on your own without risking your own
money if you make a mistake. |
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