PRECIOUS METALS:

#1) Invest in Gold, Silver and Platinum:

Personally, I like  US Bullion type 1 oz coins such  Silver and Gold Eagles coins or Canadian Maples.   You can buy these at your local coin store.  A few good sources to give you an idea what to pay is at TULVING.com and COININFO.com.   My personal preference is Silver  over gold for many reasons (i.e., Silver has been used as money longer than gold, it has more of an industrial demand that is growing because of it’s physical properties and it is less likely to be confiscated by our government than gold is).  Now is a great time to begin buying Silver and Gold with the recent pullback.  Silver spot price went from about $42/oz to $30 oz.  I just bought a few more rolls (20 coins per roll) of $1 Silver Eagles at $34 per coin (premium of $4 over spot), could buy cheaper at Tulving but you have to buy 500 at a time.

Another good way is to Invest in an Exchange Traded Fund (ETF):  Such as SLV for silver or GLD for gold.  These trade just like a stock and you can purchase them through your brokerage account.  Finally, you can invest in mining stocks.  Stick with the big boys that are actively mining gold, silver,  and rare earth metals.  Going with penny stock or exploratory phase only companies is just a gamble.  Your purpose is to preserve your wealth not gamble it away.

ENERGY COMMODITIES AND STOCKS:

#2)  Invest in Oil and/or the transportation of it.

Well let’s see, you aren’t going to go buy 55 gallon drums of oil or gas and store them in your garage are you?  I sure hope not.  The best way to invest in the commodity itself is through Exchange Traded funds such as USO or USL.  You could also choose to invest in pipeline funds or transporters that are not tied to the price of the commodity.  These type of funds invest in pipeline and the transportation of oil, gas and such.  Do a search, you will find many.

FOOD:

#3)  With rising prices, food ain’t going to get any cheaper and people still need to eat no matter what happens.   There is so many choices in this sector and the commodities (sugar, grain, coffee….) Again I like ETFs for this purpose such as the agriculture food fund DBA.

SUMMARY:  These are just some starting points, there are many ways to invest in these sectors.  I’m not going to tell you what or how, just a few tips to get you headed in the right direction.  What you choose is a personal preference.  I like Silver and other commodities.   I’ll buy physical positions in them, ETFs, stocks as well as take Options in them at certain points (both Put and Call) to either short them or go long when I see that volatility is about due (need rapid price change in order to profit on an option).

Let’s briefly discuss the traits of three types of emotional trades and how to avoid some pitfalls:

The Fearful Trader:  This trader hasn’t done enough research to really understand why a particular stock is on the move or why it could become the next hot penny stock.  Ultimately this lazy trader  (McFly) is looking for a get rich quick stock tip.  As such, McFly is like a deer in the headlights when the time to initiate a penny stock trade has arrived.   Because McFly has no self determined valid reason to initiate a trade, he sits on the sidelines watching the next hot stock begin to move up.  Later in the day, the stock pulls back to a support zone and then makes another large move up, but McFly is thinking it’s to late to get in now and still continues to watch.  The hot stock party continues as the stock moves to the high of the day.  Finally, fearful McFly can’t stand being left out and jumps in at the top.  Guess what, McFly is most likely going to get hosed again.  A Bold and Fearless trader would have remained calm, have the ability to make quick methodical decisions and be well prepared by having a complete entry (i.e. bought on a pull back) and exit plan (i.e. buying volume turns into selling).  The Fearless trader would have  had a number of tools available and at least understood share structure, technical indicators such as support/resistance zones, potential for dilution, news, what is driving the Hype (Pump), who the market participant are (i.e day traders), level II data (volume, time and sales) and so on.  You must  be  BOLD and FEARLESS by having as much  information as possible.  All available resources will assits you in your evaluation to either avoid the stock or provide you with a valid reason to initiate the trade at the correct time.  The Fearless trader also knows when to admit when they are wrong and isn’t scared to take a small loss before it becomes a bigger one.

The Greedy Trader:  This trader is never satisfied and believes that the stock is going to continue to move up  or doesn’t want to miss out on further gains.  Greedy fearful Mcfly happened to grow a set one day and  got lucky by  jumping in on a hot pump stock tip.  McFly only put in about $100.00 (because he is still fearful) and the stock happens to go up 100% in a short time.  But, McFly isn’t satisfied with only $100.00 profit because he wants more and it’s just not worth his time.  Well, it is possible that the stock will continue on up (maybe even 1000%).  So, McFly continues to wait but the stock pulls back and is only now up 50% near the close of the day.  McFly is pissed and doesn’t close the position.  After a few trading days, the hot stock turns into a stinky dried shriveled up old raisin and is now trading at loss.  McFly grows disheartened and lets the stock grow dust cluttering  his trading account with another worthless turd to add to his collection.  The GRACIOUS and FEARLESS trader would have been confident in his initial decision, put in a bit more money and began selling his position as the stock moved up. When the stock was up 100% he could have sold half his position so that he took some profits and remained in the game as it continued to move up or reduce his risk.  It’s easier to make $100.00 ten time then $1000.00 one time.

The Hopeful Trader:  This trader is pathetic, just doesn’t think or have any plan….he just hopes.  Hopeful Joe buys into any piece of hype, believes everything he reads is true and that others are honest.  Joe never admits when he is wrong, drinks the koolaid, smokes the catnip and thinks everything will work out.  Hopeful Joe is going to end up with a small fortune…….pocket change.  There is no hope when it comes to trading penny stocks, it is or it isn’t.  When it comes to penny stock trading, don’t trust anyone, believe nothing and be pessimistic.

Some Stocks to Watch Tuesday:

EYSM, SSHS, PFNO, CWRN and AMEL

Today’s Educational Tip

The Pink Sheets and OTCBB penny stocks are subject to illegal pump and dump schemes due to  limited reporting requirements and ability of company owners, other penny stock traders or groups of traders to manipulate the price movement.  When your considering trading a penny stock it’s a good idea to first do some basic research, like knowing  the current share structure or what OTC Market Tier the penny stock falls into (Trusted, Transparent, Distressed, Defunct or Toxic).  You can find out this information and much more at the Pinksheets.com website.  Another good place to begin your research is on the Investors Hub Bulletin board for a particular stock.  The iHub message board and ibox provide valuable information (like share structure history, overall psychological sentiment, etc.).  Having some basic information about a particular penny stock will help you decide if it is one you wish to trade (or invest) in. 

Penny Stock Traders Watchlist for Monday 10/26/09 

• BZCN @ .0013  (Bizauctions Inc., Last Thursday it broke below .0008 support which then became the new resistance point.  I was watching Friday, waiting for a break above .0008 with strong buying volume in the .0009s.  The .0009s went so quick that I wasn’t able to get in until .0010.  BZCN moved quickly to the .0016 resistance where profit taking was expected and then pulled back to .0011 before closing at .0013.  Current Authorized Shares (A/S) is 5 Billion of which ~426 million are Outstanding Shares (O/S) as of 6/30/09.  Psychological sentiment is more positive than negative at the moment.)
• MFLI @ .016 (Muscle Flex, Inc., Technical and Psychological play in motion!  What a classic pullback and bounce off .015 support with low volume on Friday.  News release of infomercials and product launch in November combined with the technical chart pattern makes this a relatively low risk penny stock to trade (if timed correctly).  If it breaks below .015 then it isn’t doing what I would have expected.  Make sure to have a plan.)
• PED @ .719  (Petroflow Energy Ltd., Not much chatter or volume but I like the chart for a low risk technical chart play.  The price has pulled back and bounced off support on super low volume.  I’m now looking for a change in trend to the upside but will watch to see if the support of .70 (which looks pretty solid) holds.  The risk should be minimal considering the price is close to the .70 support zone, if it breaks that, you have a good stop loss point…right?)
• AMIE @ .64 (Ambassadors International Inc.,  Another potential technical pullback and bounce play.)  
• PDMI @ .0038 (Paradigm Medical Industries Inc., Pulled back and consolidate around .0030 with volume drop off.  Nice upward price movement with further volume drop on Friday.  Message board chatter is mostly positive and upbeat.  Buy confirmed on AmericanBulls.com.) 
• BDGR @ .0262  (Black Dragon Resources Co. Inc.,  Pulled back to fill the gap up from .02 last Thursday.  It opened Friday and closed up on decreasing volume.  Currently, the overall message board sentiment is mixed.)
• ASFX @ .021 (American Scientific Resources, Inc., This one is currently in the Toxic OTC Market Tier but the chart is similar to the others suggestions I have mentioned above.)
• CYBL @ .0007 (Cyberlux Corp., Volume breakout but having trouble getting over that .0008 resistance.)

Just because a penny stock to watch does not close in the green the next day does not always mean it wasn’t a good penny stock to trade.  Sure, I would like nothing more than to see every penny stock to watch keep going up, but that just ain’t going to happen (we have identified many that do continue to go up for a short period of time).  What goes up usually comes down and bounces (not always…nothing is always).  This site looks for penny stocks with high interest, volatility and momentum (the swingers). 

In regards to BDGR, I first called this when it was .0045 just before it began to move (that was a pretty safe entry point) and again on 10/15/09 when it was .0288 before the run to .054.  Last night I mentioned it was getting very scary at this point but that there was no telling which direction BDGR was headed.  Today’s move was a much needed healthy pullback allowing you a new opportunity.  I have mentioned many times in my posts to not chase a stock up but rather wait for a pullback to near a support level.  I wish BDGR pulled back to .02 and filled the gap (maybe it still will or maybe it won’t, but gaps do tend to get filled at some point).  Getting in today near .03  and out near .04 would have been a great day trade!

MORE PENNY STOCKS TO WATCH 

Please read the above information before doing anything!

• GERS @ .0028 (Nice pullback to near .0020 support today.)
• NEOM @ .0237 (Volume and price breakout today taking out key resistance levels.  Good chance this gaps up at the open so you may want to wait for a pullback.)
• IOVE @ .0129 (First mentioned on 10/11/09 @ .0092 and has been swinging all over the place.)
• BPMA @ .09  (260% gain today.  Ummmmm you think you might want to wait for a pullback and bounce?  Otherwise you might just want to pass.)
• CERP @ .15 (Hugh volume and price breakout. Smashed up and closed against the .15 resistance.  Like I said above, I’d either wait for a pullback or a break above .15 (without a gap up at open) before doing anything.)
• CTDB @ .173 (Another one with volume and price breakout.  However this one  took out and closed above the .15 resistance zone.)

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.)

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.)

INVESTING IN STOCKS

In addition to trading penny stocks I do look for opportunities for investing in stocks.  There are many different approaches to identify stocks to invest in (refer to article posted March 7, 2009 “How to Pick Penny Stocks” for the basic approaches used to analyze stocks).  I try and keep it relatively simple, I’m not interested in spending hours pouring over fundamental data of a particular company.  So, let me give you a brief explantion of my stock investing style with an example.  I first started investing in Gold (~$265/oz) and Silver (~$5/oz) stocks about 8 years ago.  At that time the majority of my friends and family thought I was crazy (well, maybe I am).  Anyway, now everyone is pumping gold and you see adds and financial advisers recommending to buy gold now.  I’m a big believer in that a portion of your portfolio (~5%) should have some precious metals but all this recent gold hype tells me that almost everyone who wants in is already in.  I’m not going to say gold isn’t going higher ($2000/oz or more is certainly possible) but I think there has to be better investment opportunities.  Also, consider that around the late 1970’s to early 1980’s gold reached a peak near $900/oz.  In my opinion our current economic situation has far worse problem at this time and yet gold is now only about $1048/oz.  I would think the price of gold should be an easy $2000/oz just to match the 1970’s price adjusted for inflation…….Hmmmmm, so why hasn’t it?  I also believe that the financial condition will get better in time….I don’t expect our monetary system will crumble apart (still many tricks in the bag to pull the world out of this economic mess).  It’s just been way to negative for such a long time that in my opinion we all are growing very tired of it and are ready to start investing and buying stuff again (of course not at the same level we had in the past).
 
I suggested in the beginning of July that it was time to consider investing in Natural Gas stocks (the price was hammered down) while everyone was busy getting out and financial gurus were saying get out.  I followed that up by listing a number of Natural Gas stocks on this website (most of which now have decent gains and several of them are up 100% since then).  Now here is the point, look for undervalued sectors, commodities, stocks that have something people need or will want.  The first thing to do is to identify a service, item, commodity or whatever has been sold off and looks to cheap.  If you truly would go out and buy it now at that price cause its just so dang cheap than it is probably a bargain in the long run, this is exactly what I’m looking for when it comes to investing.  Your next step is to then identify several solid companies in that sector that have also taken a big hit or have something new in development that excites you personally. 

So, here is my two cents when it comes to investing in stocks (trading penny stocks is the exact opposite):  Do not follow the heard into the green pasture.  When the green pasture is full of all the sheep it will soon be picked clean and will not have an opportunity to grow tall.  You want to find empty trampled down ratty looking fields that nobody is interested in at the moment to invest in.  Get in when everyone else is finished getting out…..wait for the mass exodus to settle….then load up because that’s when there is room for opportunity for the grass to grow and start thriving again!  If the field has a good nurturing farmer and has the basic ingredients (you can research that) then once it begins to thrive it will turn green again….and hence, they will then all come stampeding back while you begin to make your way to the exit.

LIST OF PENNY STOCKS TO WATCH AND TRADE

When it comes to trading penny stocks I do exactly opposite of what I said above about investing in stocks.  I’m just looking for hot penny stocks that everyone wants or might want a quick piece of…golden potential and a smashing party.  I don’t research the fundamentals all that much just some basic information like the share structure, news, message board chatter, trading volume and most of all the chart.  I pretty much assume the penny stock is a POS and is being manipulated in some manner.  I usually wait for a pull back to support and then jump on for a quick joy ride.  Oh yeah, I been burned more than a few times being left with a case of the hebbe geebees and an empty wallet.

PMDP @ .0013 (Volume and price breakout, came back and tested the .0010 support level)

KWBT @ .0058 (Swine flu (H1N1) play, I first suggested this when when it was .0014 and I have traded it several times for a profit.  I don’t know what’s going on with this company but the chart is looking good.)

IOVE @ .0092 (Breakout volume, price and chatter.)

ZVTK @ .0029 (Breakout volume and price.)

PMOZ @ .83 (Paid promotion underway.)

The Market Maker:  This is a firm (broker/specialist) who is authorized to deal in the securities (sell or buy shares of a stock) on an exchange at the quoted bid and ask prices.  More than one Market Maker (MM) can deal in a security.  This is the entity who will buy your shares and sell you shares.  You are not buying or selling shares directly to another trader or investor.  Market Makers must maintain an inventory of shares in the security they deal in order to supply shares as needed and be ready to buy those shares back from you.  So, that means the MM is always playing both sides of that penny stock and set the prices at what they will buy and sell a stock for (bid/ask).  It really comes down to supply and demand, if the MM has an over supply of shares the price should come down and vice versa if demand is high and supply is low, the price should go up.  However, it’s not quite so simple, it’s my opinion (or a fact) that at times the MM’s play games and hide the truth behind the supply and demand.  If they were always straight forward then you would know what’s really happening and hence you might not buy or sell that penny stock.  Look, you say that’s not possible they are honest people just making a commission.  I say….wake up McFly and be suspicious, these MM’s are not your friends, they want your money.  The MM is a real human (like you and me) and it’s his/her job to make money for his firm or he will end up without a job.  The MM is sharp, decieving and has a bag of tricks to sucker you in or shake you out.  The MM wants to buy your shares cheap and sell them for the highest price they can.  At the same time they want to keep the shares trading (more volume means more commission and bid/ask spread profits).  Your only advantage against them is to know they are cunning and you must be nimble.  If your a long term investor and have done your fundamental research then level 1 quote system is probably good enough for you.  In level 1 you will only see the best MM bid/ask  price.  If your planning on short term trading, then I highly suggest you get Level 2 quote system so you can see all the MM’s ready to buy and sell and what their associated bid/ask prices are.  In level 2 you will also see who the controlling MM is at any point in time (that is the one at the top with the best bid/ask prices).  This is just the basics, I suggest you learn all you can about how Level 2 quote system can assist your trading.  Level 2 will help provide you with clues as to what the MM’s are up to and can assist you in getting the right price on your way in and out.

The Bid:  The best bid is the highest price a MM is willing to pay you for each of your shares (the price you get if you sell at that moment).  This is not always the case, I have actually been able to sell my shares at the higher ask price or somewhere in between.  Nothing is always.

The Ask:  The best ask is the lowest price a MM is willing to sell you shares (the price you need to pay at that moment).  I have been able to bid whack and that is put my buy limit order in at the bid and purchased shares for a lower price than the ask.

The Bid/Ask Spread:  The difference between the bid and ask price is what is called the spread.  The spread is additional profit to the MM.  For example, say the bid/ask is .0002/.0004.  The MM buys shares at .0002 and sells them for .0004.  For every share the MM sells or buys, he/she makes .0002 per share for the firm (little more complicated but that’s the basic idea).  Hopefully, you understand now and realize that the MM makes money no matter which direction the stock price goes.  They just don’t care which way it goes….they only want to keep the shares trading (more volume). 

It’s important to never ever place market orders trading or investing in penny stocks.  You should always use buy or sell limit orders (unless you absolutely must get out now).  If you will not listen, then at least don’t put overnight buy market orders in, you will get hosed.  Also, take your time placing limit orders (make sure you use the correct # of decimal places…no fat finger typos).

Sometimes I just look at the chart and decide what I’m willing to pay regardless of the current bid/ask price.  For example, I may put my buy limit order price in just above the support level.  Once it’s filled, its good practice to immediately place a sell limit order just below the next resistance level.  At times when I’m trading a hot penny stock I’ll just hop on (if I catch it quick enough) and jump off as the momentum slows (In level 2 if I see lots of MMs stacked up on the best bid (ready to buy) and 1 left on the best ask (ready to sell) with volume screaming, I know I have a pretty good chance of making a quick profit while limiting my risk).  Not always, things change on a dime so you got to pay attention and be ready, have a plan and stick to it. 

Have fun, be a sponge and keep learning something new everday.

The ruthless nimble fish swims away with the prize

If you want to swim away with profits you must be ruthless (yet cautious) and quick to win in this penny stock game or you will be eaten by the sharks (You don’t want to be the last one out).  You are playing a game in the deepest darkest depths of the ocean where you cant see whats coming next.  There are lots of evil critters down here with many tricks to play.  These shyster sharks will do whatever they have to do to get you to drop on in and convince you to stay.  They will promise you the moon and that big pot of cash.  But I tell you this, you must not believe these crooked sharks and remember its just a piece of bait set inside a trap.  So, are you going to be a sharp little Parana or that lazy sucker fish?  I suggest you think like the Parana and strike that quick killing blow, just take a little bite before heading back out the door.  Let the rest of the naive little sucker fish stay to the end and pick the hook clean.  Even though you didn’t fill up all the way, you made the right choice, knowing if you stayed for desert and the dogie bag, you wouldn’t be able to move quick enough when the sharks lock you in.   If you cant follow the rules, I suggest you go play somewhere safer.  Try a nice clean clam bay with warm sparkling clear waters, where you can see to the bottom and there are very few predators.

Wealth is not created nor destroyed, it is simply transferred from one fish to another.

List of Penny Stocks for Wednesday 5-27-09

Im still watching the following penny stocks.

QEDN, MGLG, XKMEQ, SMWFE, UNCO, APDN

Adding the following two new penny stocks.

JNIP @ .0004

ULU @ .20

I try my best to identify at least five hot penny stocks on the move the night before the next trading day.  If their duds, I move on and look for another hot penny stock on the move while the market is open.  There is many ways to search for them….they all take time and time is your enemy if you discover it to late (don’t buy in to late and pay to much).  A couple of places to start your search is by using the real-time most active lists (I currently use Quotestream.com) or you can try the free 15min delayed quotes at PinkSheets.com (but again your already 15min late for the date). You should also search the message boards (such as the Investors Hub Bulletin Board or Yahoo) looking to see what everyone is getting excited about or try using some of the stock screening tools.   Breaking news can also be a decent source (I use google GMAIL Reader and subscribed to a number of RSS stock news feeds). 

Hot Penny Stock Suggestions for Friday 5-22-09

I’m not the best Multi-Tasker (really working on becoming better at that) which is one reason I don’t normally update the post during the day.  I’m either working or focusing on my own positions.  However, I’m going to try to do something different for Friday and not list anything until I spot something during the market tomorrow.  If and when I spot something I will update this post with the stock  (including the time and it’s current price).  Also, if you see anything, please feel free to post a comment ASAP.  However, SMWF will definitely be on my radar in the morning.

HOT PENNY STOCKS WILL BE UPDATED DURING THE DAY (Keep checking back)

9:31ET  SMWF now at .0006 (However it is now up 200% since suggested Thursday)

9:34ET UNCO now at .016 (this is high risk….it was up 294% yesterday)

10:08ET  UNCO now at .014….not looking so hot anymore  11:01ET….I take that back now at .02 and moving higher….your on your own on this one.

10:09ET  MGLG now at .0004 (down from .0006 open)  (ok…possible new signal for this one that made us 3000% last week….Lots of Bid support 8 MMs at .0003, 1 MM left at Ask of .0004)

11:19ET….SMWF at .0005 possible sell off…….Dont forget it’s Friday and we have a long weekend (Monday Market is closed and Traders dont usually like to hold their positions long).

11:56ET  UNCO now at .029……Probably wise to take some profits here if you got in at .016 (thats almost 100% gain in about 2.5 hours). Do whatever you want.

12:12ET QEDN now at .0001  (No bid, .0001 Ask…That means you cant sell it! But you can buy at the bottom… High risk lotto play.  Don’t usually tell you what I’m doing but wanted you to know that I like a good gamble every now and then so I got an order in at .0001 ask…not filled yet….2 Market Makers left at the .0001 Ask.) 

 12:14ET…..my order for QEDN filled at .0001.

12:17ET  QEDN  now .0002.  Bid ask now .0001/.0002

12:48ET  XKEMQ at .0004 (up 300% so far today)  Been watching this all morning. Not sure about this one….just wanted to let you know.

FYI:  Market will be closed Monday.  Kind of a slow day today overall but still some good trades anyway.   I expect many traders took the day off for the long weekend.