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Trading the Pullback – Wednesday 10/14/09

Posted on October 13, 2009 by Penny Stocks Picker

Trading hot penny stocks is like a wild roller coaster ride.  The volatility of penny stocks on the move is what makes them so great to trade.  They don’t always have to close in the green every day for a hot penny stock to yield profits on a good trade.  It’s all about timing, if your off then your going to get hosed (BOHICA) but if you wait for the right moment you will limit your risk and potentially end up with a profitable trade.  The point I’m trying to make is that waiting for a pullback limits your risk and provides you with a higher chance in ending up in the green, even on a penny stock that ends up closing in the red for the day.  So, don’t expect them to all go up and up…they won’t.  They still are the top penny stocks if you trade correctly.

Trading the hot penny stock pullbacks are safer plays then chasing a hot penny stock on the way up.  Here’s a few examples.

PDMI added to watch list yesterday at .0033.  I noted to consider waiting for it to pull back first.  It closed up 6% today from yesterdays close, but if you had waited for the pullback  to .0026 that would have lowered your risk and increased your gains today.  It pulled back to .0026 went back up to .0044 and closed at .0035.  You could have made about 70% if you got in at the low and out at the high.  Of course your not likely to pick the low and high….all you need is somewhere in-between.

ALLP added to watch list yesterday at .08 and closed down 18%.  However this one pulled almost all the way back to the .04 support today (hit .045) but then climbed back up into positive territory at .085.  You could have easily purchased this one at .05 and sold at .08 for a 60% gain.

SNWT added to watch list yesterday at 1.22 and I noted that it had pulled back to 1.20 support.  I love pullbacks like this so I can catch a ride on the second bus.  It behaved perfect and ran up to 1.47 and closed at 1.44 for a 18% profit in 1 day.

List of Penny Stocks for Wednesday 10/14/09

MYNG @ .0029 (Huge volume and price breakout (closed up 163% and went even higher).  Breakout chatter.  Interesting news to checkout.  Ummmm…this pulled back a bit already so I dunno if it pulling back to the .0020 support or not.  LET’S GET IT STARTED!!!!)

EDVP @ .103 (Strong volume increase with 106% gain in price.  This one has been in a long downtrend.  Could be a dead cat bounce but definitly getting some interest now.)

SYNJ @ .0010 (Don’t know if the pullback to is enough to get this one moving or not.  I sure would like to see some volume on this.)

WDAS @ .54  (pulled back almost to the .40 gap up from .05.  Still alot of risk on this one.)