Penny stocks

[Qdiddy 10]

Not sure if this is the right place to post this question but where can I find reliable information on penny stocks? I am a small time investor and want to use this as a way to get started and learn as I go before breaking myself off.

 

Thanks for any and all help

[SIUYA 11]

first you need to define what a penny stock is....market cap, share price etc;

then IMHO penny stocks are more like binary options - you either make a lot of money or lose it. they are not really great for trading, but can be fantastic for punting as part of a portfolio.

If you can get access to market data, they should all be there, it depends on how you want to analyse them - technical or fundamental.

[Tams 20]

  Qdiddy said:

Not sure if this is the right place to post this question but where can I find reliable information on penny stocks? I am a small time investor and want to use this as a way to get started and learn as I go before breaking myself off.

 

Thanks for any and all help

 

you can get reliable penny stock information in cow pasture.

if you walk in it often enough, sooner then later you are going to get shxt in your shoes.

Penny stock is a form of gambling, not trading. It is populated by manipulators who will be happy to take your money. If your post is a prelude to a spam for newsletter subscription or similar advisory services, then you are pretty naive. If you are a wannabe trader and your post is a genuine question, my genuine advice to you is to stay away from penny stocks. There are better ways to spend your money.

[MadMarketScientist 11]

  Tams said:

you can get reliable penny stock information in cow pasture.

if you walk in it often enough, sooner then later you are going to get shxt in your shoes.

Penny stock is a form of gambling, not trading. It is populated by manipulators who will be happy to take your money. If your post is a prelude to a spam for newsletter subscription or similar advisory services, then you are pretty naive. If you are a wannabe trader and your post is a genuine question, my genuine advice to you is to stay away from penny stocks. There are better ways to spend your money.

 

Amen! Stay away from penny stocks, they are manipulated and the insiders are going to take all your money. You might win a big one here and there but the odds are so stacked against you ... playing blackjack or craps will give you a better chance.

 

MMS

[Patuca 13]

If one will simply daytrade the daily movements in penny stock or at longest the longest time frame swingtrade them 2 to 5 days it is possible to have a high win rate on small profits. Of course being brutal in cutting losses is imperative. For instance, say a penny stock has a .05 average daily range. Look to capture .02 of that. Lets say the stock costs .15 share. One invest 750.00 buying 5000 shares. One captures .02 or 100.00. To invest 750.00 for a few hours and make 100.00 is a pretty good rate of return.

 

 

Do do this one really needs some sort of tool (such trading software) that will give you some idea of the mometum..etc of the movements... pivots..etc Also, one needs a good penny stock broker. And a margin account. Just2trade is a good lowcost penny stock broker. about 5.00 RT basically almost unlimited shares for all practical purpose.

 

When day trading penny stocks grab what the market gives you. Most of the time that will be .01 to .03cents per share and sometimes only 1/2 cent a share. Just be flat at the end of the day unless you are using a swing trade strategy.

 

Look at it this way. If you can buy 10,000 shares and capture .02 you have cleared 195.00 for the day after comissions. Capture .03 and you end the day with 295.00. Capture 1/2 cents and you end the day with 45.00 after commisions. If you have the cash and have a margin account and can do this 2 or 3 times a day you can make a little money at it.

 

The secret is: measuring direction and momentum. Don't be greedy. Cut losses. Don't invest. Only trade pennies with at least a .03 range. Be statisfied with a slice of the range unless there is a big move up and you are`already in. Then ride it until it tanks and dump immediately. Never look back and say I should have held on for more profit. Take your profit and run. Otherwise, you will attempt to hold on ..not cut losses..and take some bad hits. It only takes a few to get you far enough behind it is hard to catch back up.

 

Never take advice ..hot tips..etc. Most are pump and dump scams. Just read average range..trend...momen..support..resistance...pivot points...correlate volume with price..etc of a particular penny and make your decision on those factors.

 

Disclaimer: The above is not trading advice. Just my thoughts on the matter. For informational purpose only.

Edited May 30, 2011 by Patuca

[djohnsonhot 10]

Forget about it! Penny stocks trade for a reason at a penny or nickels: they are worth no more and are heavily manipulated and is the last place a newbie would want to start out.

 

Better to buy 100 shares of a great company, that is liquid and has a history (Blue Chips, paying a dividend) than to buy a penny stock that is nearly worthless and usually for good reasons.

[udgqwe424 10]

Penny stock investing is very risk. Although some penny stocks sharply increase in value, most do not. If you intend to invest in penny stocks you should know the differences between penny stocks and other stocks. In recent years, trading penny stocks has become increasingly popular especially after online penny stock trading was introduced.

[MichaelFrayn 10]

It's the right place to sharing. first you need to define what a penny stock is....market cap, share price etc...

[MichaelFrayn 10]

Penny stock is a form of gambling, not trading. It is populated by manipulators who will be happy to take your money. If your post is a prelude to a spam for newsletter subscription or similar advisory services, then you are pretty naive. If you are a wannabe trader and your post is a genuine question, my genuine advice to you is to stay away from penny stocks.