Buying Penny Stock is not a Fool’s Game – Watch for Thursday 4-2-09
Posted on April 1, 2009 by Penny Stocks Picker
Buying penny stock is fun when your making money. Our free daily penny stock suggestions will assist you in buying penny stock by providing you with the most current top penny stocks. However, if your going to blindly jump into a penny stock trade without doing your homework first, then your a fool. The penny stock game is high risk but if your properly trained you might end up making penny stock fortunes. This is no fools game, it takes hard work and planning to be successful. The more information you have available helps decrease your risk. It’s kinda like counting cards at the black jack table. You can increase your odds of being correct if you know what is more likely to turn up. Our educational articles and daily posts should help enforce the rules on how to trade penny stocks. If you haven’t already spent some time looking over our Introduction and educational articles then I wouldn’t recommend buying any of the top penny stocks on our lists (there is no guarantee that they will go up). A quick reminder when buying penny stock; determine penny stock trade time frame, confirm a trade signal before entering, pay attention, do your homework, clean up your house and take your profits. Hey, you don’t have to trade if your not ready.
Watchlist for Thursday
AMNE @ .004 (Volume breakout, Lots of chatter, News, pumping…….)
INDR @ .0008 (Bottom play, seems like not a lot of risk and is due for a bounce? If you buy in here and it breaks below support then you should probably get out.)
VCSY @ .04 (Volume and price breakout, closed at High of Day, indicators turning up. If this breaks over .044, then there is a good chance it could fill that gap down that occurred on 11/17/08 which went down from .087 to .04)
PTN @ .15 (Volume breakout)
SPNG @ .0191 (Called this yesterday at .0134. Volume and price continues to breakout, more news, still #1 on IHUB bulletin board.)
GNTA@ .017 (This was also identified yesterday at .0136. Volume and price moving up little by little. Decent amount of chatter.)
More past picks to watch (GXPI, NNBP, EBOF, CEMJQ)
Burt recommends SRSR @ .02 (see recent comments)
Tags: buying penny stock, how to trade penny stocks, penny stock fortunes, penny stock trade, top penny stocks
Filed Under: Picks N Tips
I’m impressed! You’ve managed the alsmot impossible.
Do you have more great aritcles like this one?
Yesterday night, I bought the stock MGLG @ .0001 X 3 = million shares = $300. Not really a huge cost. By looking at the 1 week trend, and with the volume it has, the price fluctuated between .0001 and .0002 at least 2 or more a day. This morning, I went to my computer to see where the price was at, and sure enough, I made 100% of my profit. However, even as I set the sell limit @ .0002, it would not cash me out. So I thought, OK maybe it’s my online broker. So I canceled my sell limit and I tried to do it at a market sell. Sure enough, the price drops to .0001 and sells it at that price. I tried to buy 3 Million shares again at a limit price ,of .0001 and nothing would happen even at that price. So what am I doing wrong here?
Never use market orders unless you absouletly have to get out right away. Always, always use limit orders. I suspect the bid/ask was .0001/.0002. Normally (not always if your patient), if you want in you have to pay the ask (.0002 in this case) and you can sell at the bid (.0001). When you placed your market order it filled at the bid (.0001) which is expected. There was no chance of you selling at .0002 unless the bid/ask went to .0002/.0003. However, it was smart that you placed a buy limit at .0001 (bid whacker) to ensure you didn’t have a 50% LOSS right off the bat. It’s still possible that the bid could go back to .0000 (100% loss from a .0001 entry). This is still a high risk Lotto play.
Great Post!
I totally agree with what you said about waiting for confirmation. I tell people on my blog you can’t just buy or short a penny stock blindly, you have to wait until it breaks a certain price point or gives a clear indication of where the price action is going.
Keep it up
Thanks for the advice. I have a clear understanding why it does that now.