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How to Make Money Trading Hot Stocks – Watch List 10/19/09

Posted on October 18, 2009 by Penny Stocks Picker

In addition to our current watch list below, this article provides some rules to help you learn how to make money trading hot stocks.  There is so much information available that at times it can be confusing and time consuming.  You can try following the crowd or a hot stock tip but if you don’t think for yourself or fall asleep at the wheel (i.e.,  don’t have a plan) then i can assure you will end up penny-less.  Here at SureFirePennyStocks we look for the best stocks to watch during the trading week that may signal a short term trade opportunity.  Making money by investing in stocks is high risk (even more so for the penny stocks) and requires much more time researching fundamental and technical data.  In addition to following the rules, please check out our introduction and educational articles in the category archives to help teach you how to make money trading hot stocks.

Just Some Rules on How to Make Money Trading Hot Stocks

• Always take your profits if you have them no matter what.  (Stop listening to the hype that says it’s going to a DOLLAR!  What are the odds of that?)
• Keep learning something new everyday (i.e., read our educational posts).
• Make sure you have a valid reason to trade the hot stock based on your own decisions (i.e., It pulled back to support or broke resistance.)
• Make sure you have a complete plan when trading a stock, not just about getting in.  (When are you getting out for a profit or when are you going to cut the cord if your losing.)
• Don’t play questionable trades (If your not sure what’s happening then stay on the sideline.)
• Understand that most penny stock tips don’t work out in the long run.
• It’s better to wait for a pullback to or near support then to chase a stock on the way up  (Don’t be the one holding the bag when it’s opened and realizing it’s just poop!)
• Better to buy pullbacks that filled a gap then buy a stock that gaps up.
• You must always have a stop loss target before entering the trade and don’t change your mind!
• You don’t always have to be correct all the time (don’t beat yourself up if it does not go the way you wanted) so take your losses and keep them small.
• Don’t shoot for home runs (i.e., 100%), keep your expectations lower and be grateful when it works out better than expected.
• Don’t fall in love and get married to a penny stock…..use her and dump her before she knows what happened.
• Don’t trade to make money.  Make sure your trading that penny stock to trade well and the money will come.
• Don’t expect to make money everyday….if you do then most likely you will end up losing it.
• If your not feeling well then you should take the day off.  You don’t have to trade every moment the market is open.
• Don’t be a stupid sheep following the crowd or a deer in the headlight.  You want to be the nimble Parana or sly Fox.
• You are responsible for every decision that is made….don’t blame the hot stock tips, your friends or anyone else.
• Take a little time to research what’s happening.  You don’t have to pour over fundamental data for trading penny stocks, but you do need to know some basic information (i.e., reading a basic chart, share structure, and find out what is driving the hype).)
• Don’t have to many open positions.  You can’t pay attention to more than a couple, so throw out the trash and move on.

Watch List of penny stocks for Monday 10/19/09

(I may add some more information or stocks to the list as I do further research today, so check back.  I just wanted to get this out ASAP so you can do your own homework (please post a comment or something in the forum if you have something to share.)  Don’t forget to keep watching some of last weeks suggestions such as BZCN, BDGR, IVIT for possible trade confirmations.)

• DLAD @ .0007 (Breakout volume, over 1 Billion shares traded.  Tested the .0008 resistance and unable to break it.   I’d like to see it escape the triple zeros on volume.)
• BZCN @.0015 (Mentioned this on 10/14/09 at .0008 and it went as high as .0024.  it pulled back to .oo13 so I’d watch to see if it can hold the .0012 support.   One possible plan to trade this penny stock would be to wait for a pull back to .0012  and sell at .0022 for a profit or .0010 for a loss.)
• SNDY @ .0289 (3 straight days up and about to test that .03 resistance.  A possible trade plan for this is to buy when it breaks above .03 (say .031) and sell set a reasonable price target (say .035) or stop loss if it breaks below .03.  Remember these are just ideas for a plan not my advice to buy or sell!  Decided for yourself.)
• GPSNQ @ .0054 (Up 500%! on breakout volume.  Also breakout price up as high as .013.  Pulled back and closed above the .005 support.  Might be a good trade now if it can hold .005.  Don’t blindly jump in!)
• EPIX @ .115 (OMG! up 1050% on break out volume.  Filled that gap down from about .115 which occurred on 7/21/09.  Amazing to see those gaps get filled.)
• GSPG @ .01 (It’s now at .01 support and holding.  Looks like the price has consolidated with decreasing volume into a triangle pattern.  The price is now at the apex of the pattern and deciding which direction it will go (Up, down, sideways…lol).  GoldSpring, Inc. is a North American precious metals mining company, focused in Nevada, with extensive, contiguous property in the Comstock Lode District.)