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penny stock trading 300x228 Penny Stock TradingWe all know that penny stocks are a high risk investment, but they offer some of the richest rewards available on the stock market. Home runs and massive gains are achieved each and every day in the small cap stock arena. You must preserve capital and at some point be willing to cut your losses.

SHORT TERM TRADING

Each and every day, there are several hot penny stocks in play. However, sometimes less is more. First and foremost limit your number of positions to a maximum of three stocks. It’s hard enough to pay attention to one stock, nevertheless five or six.



MARKET MECHANICS

Investors also need to understand the way the market works. You must understand the difference between the bid and ask. This is especially important with penny stocks. The person who is bidding for the stock is willing to buy the equity at that specific price. The scenario is flipped in regards to the ask price. The person who is offering the stock for sale is willing to sell the equity at that exact price.

LIMIT ORDERS

Human nature sometimes takes advantage of us and we can get real greedy. When a penny stock is moving, our greed tells us to act quickly. penny stocks over $3   More often than not, when you place a market order on a hot penny stock your execution price is much higher than you initially expected. This is why it’s better to stay disciplined and miss a potential massive gain than expose yourself to a bad fill and a potential disaster. Another common mistake made while investing in penny stock investors is putting your money with illiquid stocks. Owning a stock that doesn’t trade much before everybody catches on is great when it goes up, but there could be hell to pay if you are wrong. Having no buyers ready to buy your illiquid position can wipe out hard earned gains from other positions. So try to stick to stocks that trade at least 100k in dollar volume per day.

SCALING OUT

When investing in penny stocks you should have an exit strategy. Actually, it doesn’t matter if it’s a blue chip or a penny stock.  You should always have an exit strategy on any investment.  You need to know how and when to get.  You should set a threshold for how much money you are willing to lose, whether it is 5 or 10%.  If your pre-determined loss threshold is hit, you should chalk it up as a loss and move on.  Another good penny stock idea will come along sooner than you think. Most experienced traders never let their whole position go at once. Scaling out of positions in thirds is a common trading strategy. Scaling out may cost more in commissions, but paying a little more is worth it when implementing a sound strategy.

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picking penny stocks Picking Penny Stocks and Large CapsPicking penny stocks that work is not the easiest thing to do. This is why we often put together a list of stocks for you to glance at with some different ideas on it. The list will vary from time to time. On one day, the list could have 7 blue chips on it, and on the next day our list could consist of just three pink sheet stocks. Either way check it out, I hope these ideas help.

Cameco Corp. (CCJ:NYSE) I have mentioned this uranium miner before. The stock sold off yesterday after the news of earthquake in Japan broke. Shares of CCJ are still sensitive to quakes, aftershocks and politics. Shares look a little oversold, but this one is hard to step into in anything other than a trade.

Molycorp (MCP:NYSE) Shares of MCP ripped on news of a bill being introduced to Congress that regards building a rare earth reserve in the US. This bill won’t happen overnight, but the US stockpiling rare earths is definitely something to think about. JP Morgan mad a great call recently, with there upgrade to $74. penny stocks under 50 cents Tough to step into this after such a violent move to the upside, but shorting it would be crazy. Also, regarding other stocks in the RE group, I think you will see a flood of PR’s from websites who are picking penny stocks. So in addition to watching MCP, keep your eye of a the obscure RE names as well.

Intralinks (IL:NYSE) Shares ripped almost $3 from the secondary offering price of $25.25. It’s very rare to see this type of offering do so well in a down market like yesterday. The short term chart has a ton of gaps on it and this stock looks like a nice one to trade.

Cisco Systems (CSCO:NASDAQ) We highlighted Cisco and Chambers shareholder activist issue, the day before the nice pop. Remember though, this list isn’t for picking penny stocks or large caps. The list is to share some different ideas that you may not be aware of. You should also be aware of CSCO. Some are still calling it dead money, others think it’s way to cheap. A break of $20 is still a little ways away, and that level may cause some short term resistance.

We know that picking penny stocks, mid caps and large caps is not easy. So add these 4 names to you list of stocks. Hopefully they will help. Also , please check back for more penny stock alerts, market reports and IPO news.

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I doubt the average person has any idea what the Pinks Sheets are, much less anything about its reputation. But the average investor probably has very few positive things to say about this over-the-counter stalwart.

It’s the “Wild West” of investing…

You can’t find anything on the Pinks that isn’t a sub-penny stock or shell company…

otcmarkets Pink Sheet StocksHowever, the Pink Sheets landscape is changing dramatically. And these changes could mean a more investor-friendly environment is finally making its way to the once-murky waters of bulletin boards. In fact, you might already be relying on the Pink Sheets for all of your over-the-counter trades — even if you’ve never put your money in a Pink Sheets stock before.

You Could Get Rich Investing in Scientifically Selected Penny Stocks

Iit’s important to see how the Pink’s have evolved into a major player in the listing game.

The Pink Sheets put its plan into motion back in 2007 when it began to differentiate between transparent, reporting companies and the shell companies that make up the Pink’s notorious grey market. Most of these newly listed OTCQX stocks were larger, foreign firms looking for a foothold in the U.S. markets. Even multi-billion dollar firms such as Adidas and Wall Mart of Mexico count themselves as members of the OTCQX.

The Pink Sheets boasts that the OTCQX is the “premier tier of the U.S. over-the-counter market… Investor-focused companies use the quality controlled OTCQX listing platform to offer investors transparent trading, superior information and easy access through their regulated U.S. broker-dealers. i trade penny stocks

And it’s not just foreign firms that are populating the Pink’s transparent listings. Since its 2007 inception, the program has expanded to include multiple market tiers designed to help traders and investors know exactly what they’re getting into when they throw their money at a Pink’s listing.

The OTCQB was the next step. This is the latest market tier for transparent, reporting, fully up-to-date listings. A public relations push has accompanied the OTCQB launch. The Pink’s domain has changed to “http://www.otcmarkets.com”. Front-and-center on the page is a link to the market tiers, along with clear designations and descriptions for even the speculative and grey market securities.

It would appear the PR blitz and OTCQB launch are part of the Pink’s plan for OTC listing dominance. That’s the important part: the Pink Sheets is not an exchange — it’s a listing service, competing with the OTCBB, which is run by the Financial Industry Regulatory Authority (FINRA).

Despite its less-than-stellar reputation, the Pink’s are winning the technology race. Market makers have turned to the Pink’s quotation system in droves. In fact, more than 80% of all market maker quotes in OTC stocks are now published on the Pink’s platform, with just 20% on the OTCBB. So if you’re buying an OTC stock, chances are the Pink’s system is the one pulling the lever.

I can’t say how quickly the Pink Sheet’s reputation will change, if at all. But the listing service is positioning itself to turn the OTCBB into a thing of the past. That in itself is reason enough to pay close attention.

The whole game of investing in penny stocks could change forever.

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spread market risk SPREAD MARKET RISKHow to spread market riskis a question that has been asked and debated for ages. Proponents of diversification can point to blown up companies like Worldcom, Bear Stearns or Lehman Brothers when they make their points on how to spread market risk. And you have to admit they have a point, just think of the employees at the three companies listed above that had substantial percentages of their net worth’s tied to the performance of these stocks as they went lower.
 
However, there is no simple answer to the flip side of this question. Are investors over diversified ? Do traders spread market risk just for the sake of owning more stocks ? Billionaires like Bill Gates and Larry Ellison made their fortunes by having concentrated positions. So why can’t you ?
 

Spread Market Risk Is A Tough Play

 
Well it’s pretty simple, the average investor can’t afford to take a 80 or 90 percent hit with a large portion of his or her portfolio. While owning too many stocks can become tedious and cumbersome, for the most part it reduces risk. Plus, confusing yourself with market icon’s is probably not the best path to take. i trade penny stocks
 
But what is the right number of names to own to appropriately spread market risk ? Is it 5, 10 or 20 ? Well, the answer is not exactly etched in stone.
 
Here at PSE we often issue penny stock and small cap alerts in an attempt to enhance the returns of your portfolio, but we never suggest that you put your entire account into one of our ideas. spread market risk.
 
A good place to start, provided you have the liquidity, is a 10 stock portfolio. This way if a large cap like Enron goes bankrupt of a hot penny stock doesn’t pan out, you still have time and money to recover. Provided of course, that you equally weight your positions and trade less than 25% of your portfolio in speculative issues.
 
So do the extra research that is needed to add a few more arrows to your quiver and be patient. You have your entire investment life to hit a home run. So spread market risk for now, especially with these volatile conditions.

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Clearwire (CLWR:NASDAQ) The day after earnings, shares of CLWR have pulled back. Even more so after the CEO’s mid-day comments.Yesterday we highlighted that Wednesday’s move could have been due to short covering and that the $1.64 gap fill still remains in play. A neutral view might be best on CLWR unless you are a micro scalper or rebate trader.

NASDAQ ETF (QQQ:NYSE)The only reason I am mentioning this ETF is that it could be a mover if the Groupon IPO works in a big way. You know as well as I do that the talking heads on cable news can change their opinions quickly. If Groupon trades at a better than expected premium, hedge funds could bid up NASDAQ futures or simply just by the Q’s in anticipation of expanding valuations of upcoming IPO’s with strong VC backers.

Oil Services ETF (OIH:NYSE)Shares of this volatile ETF are up nicely so far today, although on volume too light to claim a reversal. However, if the consensus changes, and the long term view of the economy gets better, then oil stocks might catch a bid. OIH just filled an upside gap, but the chart is very choppy, and it’s hard to make a call for short term swing traders. However, any type of rally could cause a retest of the $136 area. penny stocks under 1 cent 2017

Washington Mutual (WAMUQ.PK) We keep talking about this zombie penny stock players dream, but it’s been dead for both bulls and bears. Like many bankruptcy plays WAMUQ is prone to year end tax selling, which is starting now. Longs should hope that it holds the 0.067 level holds.

Mistral Ventures (MILV.PK) This low priced stock has all the fixings of a hot penny stock with PR’s about medicine the common cold and very nice chart. But as in all pink sheets plays, the jury is still out. Although shares seem to be making a constructive pullback today, a break of the .10 cent level might be the only thing that will rattle naked shorts unless substantive news is announced or a flu epidemic occurs.

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Corning (GLW:NYSE)Management upped GLW‘s dividend and approved a stock buyback. GLW is consequently up over 5% at the time of this entry. But how many times have we seen this type of shareholder friendly news fail for short term traders ? If you have a long term time frame, the recent GLW news is positive, but traders should remember that there is still a downside gap that needs to be filled.

Apple Computer (AAPL:NYSE)It doesn’t take a genius to figure out that the Steve Jobs related news is weighing on the stock. However, many investors might be underestimating the innovation of the successors. Keep in mind that the $360 range is the short term line in the sand, and recent history has shown us that institutions love to buy dips in AAPL.

JC Penney (JCP:NYSE) I am mentioning this retail name for one reason, and it has nothing to do with fundamentals or technicals. JCP lowered guidance and the stock is up so far, and is near the highs of the day. A stock that goes up on bad news is often a sign of a bottom. Add JCP to your list of stocks.

Morgan Stanley (MS:NYSE)What a difference a couple of days makes. penny stocks july 2017 We touched on MS a couple of days ago when everyone was extremely negative. Just remember that the time for bounces in quality names often occur when pessimism is high. So is it time to sell after this recent bounce ? Time will tell. Just remember that tomorrow is Friday and a retest of lows on MS in the near future wouldn’t be a surprise.

Molycorp (MCP:NYSE) MCP has two different types of followers. On the long side there are many who feel that MCP is a 3 digit name at a minimum. On the other hand, some bears feel that the RE bubble has burst and MCP might trend back towards it’s IPO price. Just remember that despite the perceived economic slowdown, MCP has some support in the low $30 range.

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If you like the prospect of being able to see a possible 500% return in just a few hours or are skeptical about losing as much in as little time, take a look at some of these ideas that can help you be more successful.

penny stock big board Penny Stock Tips

Penny Stock Trading

Keep Track of your holdings.

One of the worst mistakes that people make when investing in penny stocks is that they will buy the company and then forget that they own it.  This could prove to be an extremely costly and unnecessary error for investors.  This is a major rule that applies to both blue chips and penny stocks alike.  Because of the volatility of penny stocks it is even more important.  The chances of your Dell shares spiking 200% in a day and then dropping back to even are pretty slim but because penny stocks can thinly traded, this is an every day occurrence.  These are opportunities that you do not want to miss.  Put together a penny stock list of your holdings and track them daily.

Don’t invest more than you can lose.

When you see hot penny stocks that is starting to move, it can be hard to keep from taking a 2nd mortgage on your house so you can buy as many shares as possible.  Getting in over your head while investing in penny stocks is like fighting a losing battle.  You are almost guaranteeing yourself a loss.  When penny stock investors own a position that gets cut in half, they will often double their holdings to try and make back their losses.  9 times out of 10 this is an awful mistake.  Take a look at why the position is down.  It will take a lot of news to retrace a 50% loss.  Even though penny stocks can show you some serious profits, they are volatile and have the potential to go the other way just as fast as they spike up.

Listen to the Angel….. Not the Devil.

So you just bought a hot penny stock that jumped 500% in two days.  Why not hold it until it hits 1000% right?  WRONG!!!  Once investors have made a huge profit, they often look to realize the gains.  If have a position in an illiquid penny stock that has just made a move, chances are it is going to come right back down when people start to take profits.  Set certain entry and exit points on your holdings.  Remember that those gains are not realized until you pull the trigger and sell the holdings.  Don’t get caught holding the bag.

We will be sending out more penny stock tips to our subscribers at pennystockexplosion.com

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cascadia investments CDIVAs many of you may know, we often mention penny stock scalping on this site and how it is extremely profitable for some traders, but this task is not for the novice, as many of you have witnessed in today’s session. Successful penny stock scalpers basically buy large amounts of shares on the bid and immediately join the ask price as a seller. Even though theses transactions may not be overwhelming on a dollar amount basis, if executed correctly these trades can often generate a fair sized percentage gain. Traders can generate a decent income by just hitting on 3 or 4 of these trades in a day.

Along with Washington Mutual (WAMUQ.PK) and Lehman Brothers (LEHMQ.PK), Cascadia Investments (CDIV.PK) was a favorite of many penny stock scalpers who had a long bias. At one point CDIV had all the makings of a hot penny stock. The IHUB message board seemed very well informed and had a cult like following, the stock was very liquid, and there was a theory that there was a huge potential for a monster short squeeze.

CDIV’s game applications for iPad iPhone


CDIV is a company that’s based it’s reputation and share price on game applications for the iPad and iPhone. On the surface, that’s not a bad place to be considering a company like Zynga are is public and is anticipated to be one of the hottest IPO’s of the year. In theory, the Zynga IPO could potentially bring a sympathy bounce to gaming penny stocks like CDIV. However, there is one catch. The Tacoma based Cascadia Investments was basically just a trading vehicle. and while savvy traders could remain profitable, the chairs often become scarce for the inexperienced once the music stops.

CEO Nazir Maherali did a tremendous job promoting the stock, despite having virtually very few employees, or revenues. Maherali played the game by issuing several PR’s and some involved new applications, but no revenues or profits. The lesson of the story is to take your gains in stocks like CDIV that are solely meant to be traded until they produce legitimate sales. Keep in mind that many Chinese reverse merger names are halted all of the time, and while these companies are often questioned on a fundamental basis, most of them are far more sound and solvent than CDIV.

So basically, don’t hold your breathe waiting for Cascadia investments to open again. While CDIV probably re-opens (Like most halted stocks), it could take some time.

Please check back for more info on CDIV

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nflx stock NFLX StockAs most of us know, shares of NFLX stock have been and probably will remain about as volatile as hot penny stocks. Recently, Netflix has been one of those names that has a ton of smart money on both sides of the trade. For instance Jim Cramer, the the shares are ridiculously cheap and all star Morgan Keegan analyst Justin Patterson is extremely bearish. Well so far, the bulls have been right. Except for a few pullbacks, NFLX stock has basically gone straight up for the last year and a half. It’s last run to the highs came after Goldman Sachs raised its target and shorts were squeezed.

From the short perspective you have to ask yourself one old market question. Can you stay solvent longer than NFLX stock can remain irrational. Now many NFLX bears feel $80 or $90 is a fair price for these shares. That type of downside move is enormous. These types of percentage moves are often only seen in the best penny stocks. To give you an example of how crazy this run has been, hedge fund titan Whitney Tilson was even a victim of the short squeeze a while back. Covering his position at a substantial loss. This is why we preach that no matter how positive you are about a position, you always have to cut you losses as short as possible.

This is why many bears prefer to play some of these lower market, high beta stocks with put options versus shorting them. While time is often against you with options and most expire worthless, you can only lose what you put in. On the straight short play, the loss is infinite in theory, but you can stay in as long as margin is sufficiently met.

Now remember for every NFLX stock bull that says this pullback is just earnings profit taking there is a bear who thinks the shares are worth under $100. In my opinion I think being flat and on the sidelines is the best way to play NFLX stock.

Check back for more market reports, IPO market updates and alerts on some of the best penny stocks.

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nflx stock NFLX StockAs most of us know, shares of NFLX stock have been and probably will remain about as volatile as hot penny stocks. Recently, Netflix has been one of those names that has a ton of smart money on both sides of the trade. For instance Jim Cramer, the the shares are ridiculously cheap and all star Morgan Keegan analyst Justin Patterson is extremely bearish. Well so far, the bulls have been right. Except for a few pullbacks, NFLX stock has basically gone straight up for the last year and a half. It’s last run to the highs came after Goldman Sachs raised its target and shorts were squeezed.

From the short perspective you have to ask yourself one old market question. Can you stay solvent longer than NFLX stock can remain irrational. Now many NFLX bears feel $80 or $90 is a fair price for these shares. That type of downside move is enormous. These types of percentage moves are often only seen in the best penny stocks. To give you an example of how crazy this run has been, hedge fund titan Whitney Tilson was even a victim of the short squeeze a while back. Covering his position at a substantial loss. This is why we preach that no matter how positive you are about a position, you always have to cut you losses as short as possible.

This is why many bears prefer to play some of these lower market, high beta stocks with put options versus shorting them. While time is often against you with options and most expire worthless, you can only lose what you put in. On the straight short play, the loss is infinite in theory, but you can stay in as long as margin is sufficiently met.

Now remember for every NFLX stock bull that says this pullback is just earnings profit taking there is a bear who thinks the shares are worth under $100. In my opinion I think being flat and on the sidelines is the best way to play NFLX stock.

Check back for more market reports, IPO market updates and alerts on some of the best penny stocks.

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