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Penny stocks

post #1 of 23
9/15/09 at 9:07am
Thread Starter 
So I been wondering something about Penny Stocks. From what I understand they are very short-term. Only hold for a day or a couple days. So how come whenever I go to the Pennies section on this board alot of the threads for the pennies are 100's of pages long some dating from long long ago? I thought pennies were short-term? Does this mean the same penny stocks move up and down repeatedly, is this why?

And also for the fundamental side where do you people look for news? Besides TV, whats a good website you go to everyday to look at important business news that might make you look at the stock your trading right now?
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post #2 of 23
9/15/09 at 9:47am
Pennies usually have a big range they trade between, some with more runs than others. When a security gets hot, with volume, speculation, news, whatever, more people will hop on board and ride it. Youll notice a lot of the pennies you're looking at have had multiple runs in their history (for the most part). Pennies are more for day trading and swing trading, therefore, you have a lot of people in and out.
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post #3 of 23
9/15/09 at 9:56am
Thread Starter 
Quote:
Originally Posted by TrendyBull View Post
Pennies usually have a big range they trade between, some with more runs than others. When a security gets hot, with volume, speculation, news, whatever, more people will hop on board and ride it. Youll notice a lot of the pennies you're looking at have had multiple runs in their history (for the most part). Pennies are more for day trading and swing trading, therefore, you have a lot of people in and out.
So your saying a penny could have a run in 2006, then another in 2007, and another in 2008? Is that why these threads are enormous?
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post #4 of 23
9/15/09 at 10:10am
Situation dictates.

I've seen a few multiple swings in a day (SPNG in mid June comes to mind) and tons of weekly swings.

Like I said, it all depends on the situation.
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post #5 of 23
9/16/09 at 2:18am
Some pennies will have some crazy run one day, or multiple days, out of nowhere. You'll usually see a lot of posts like "omg!" and "is it too late to get in?" and all that.
If it keeps running, there will be more posts but more often, the stock gets forgotten until it runs again someday, could be weeks, months, years.

I never hold a penny overnight for fear of bad news afterhours.
Good luck trading pennies!

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post #6 of 23
9/16/09 at 2:30am
my portfolio doubled by trading pennies...I never made that much in those blue chip stocks...since then I just trade pennies...I'm holding over 20 pennies for long term (3-12 months)...started my account w/ 12k now it's 28K value (started jan.09)
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post #7 of 23
9/16/09 at 2:46am
Quote:
Originally Posted by Stock King View Post
So your saying a penny could have a run in 2006, then another in 2007, and another in 2008? Is that why these threads are enormous?
the threads get enormous because a bunch of people get all caught up in the dream that some day their penny stock will hit 1.00 or even 100.00. it can happen but is insanely rare. almost every time it ends with the stock at .00001 or it does get above 1.00 by way of reverse split. its always funny when some of these are so easy to spot but we cant get people to listen. really it isnt too funny. i dont like to see people loose because they tend to give up after that.
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post #8 of 23
9/16/09 at 2:47am
I am trading pennies since april 09 and I doing pretty good.
I am 800 % so far, got lucky with some early buys.
I still have to learn better when to sell, don't fall in love with a penny
and I learned a lot from all the post here in HSM
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post #9 of 23
9/16/09 at 3:05am
the hardest part is when to sell it, (need to know your exit point) you have to learn not to get too greedy...it happens at lot to pennies w/ huge spike thinking at it will continue to run...you might end up holding an empty bag...I've learned a lot from a person that i know...he lost over 35K this year by being greedy & trading shorts & very important.... patience....GLTA
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post #10 of 23
9/16/09 at 8:42am
Thread Starter 
Quote:
Originally Posted by jopen View Post
the hardest part is when to sell it, (need to know your exit point) you have to learn not to get too greedy...it happens at lot to pennies w/ huge spike thinking at it will continue to run...you might end up holding an empty bag...I've learned a lot from a person that i know...he lost over 35K this year by being greedy & trading shorts & very important.... patience....GLTA
I hear this a LOT!

too greedy.

By just hearing this, when I first start on pennies I will exit on gains, meaning very small or large. I will not sit and let it fluctuate and lose earnings! Profit is profit is what a lot of people say here and thats real.

Anyways props to everyone who posted their opinions very much appreciated!

Does anyone know of good penny stock news websites? if there is any
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post #11 of 23
9/17/09 at 10:59am
Quote:
Originally Posted by Stock King View Post
I hear this a LOT!

too greedy.

By just hearing this, when I first start on pennies I will exit on gains, meaning very small or large. I will not sit and let it fluctuate and lose earnings! Profit is profit is what a lot of people say here and thats real.

Anyways props to everyone who posted their opinions very much appreciated!

Does anyone know of good penny stock news websites? if there is any
Well, easy to say. As soon you start your first position your emotions will knock on the door. The stock would drop 10% in no-time and you think.. it'll recover. Which it don't. Or the stock would gain 10% and you think.. ah i'm sure it will go up some more!

Everybody has those emotions, you would have them as well. Soooo USE STOPS with your trades and increase them as soon as you get profit. This way you can control those emotions.
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post #12 of 23
9/17/09 at 11:20pm
Thread Starter 
Quote:
Originally Posted by Mitzter View Post
Well, easy to say. As soon you start your first position your emotions will knock on the door. The stock would drop 10% in no-time and you think.. it'll recover. Which it don't. Or the stock would gain 10% and you think.. ah i'm sure it will go up some more!

Everybody has those emotions, you would have them as well. Soooo USE STOPS with your trades and increase them as soon as you get profit. This way you can control those emotions.
Right now I am not trading. I never have, only on thinkorswim demo account. I've heard a lot about "stops". Can someone basically tell me what this means? I know if you buy a stock, and you put a stop loss on it, IF that stocks loses value and reaches that certain point you want it to stop it will stop and you sell the stock then? Whats the ranges you can put a stop loss? Fill me in!
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post #13 of 23
9/18/09 at 12:24am
You should read Chan's Sticky for this. He covers that question & everything else you ever need to know about Buy/sell/stop.
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post #14 of 23
9/18/09 at 1:21am
Thread Starter 
Quote:
Originally Posted by qu4rk View Post
You should read Chan's Sticky for this. He covers that question & everything else you ever need to know about Buy/sell/stop.
I'm not blind, i'm aware of all the informational sticky threads above, but I would also like to see others opinions also!
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post #15 of 23
9/18/09 at 1:28am
Quote:
Originally Posted by Stock King View Post
I'm not blind, i'm aware of all the informational sticky threads above, but I would also like to see others opinions also!
Not calling you blind in any way & if you took offense, my apologies. What I'm saying to you is that Chan explains what it is, how to use it & how to help make you money, but more importantly how use it to keep you from taking substantial losses.

I'll let someone else answer your question, but once you read Chan's post, you'll be apologizing to me.

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post #16 of 23
9/18/09 at 3:03am
A Buy Stop will buy once the target price is reached (You set it above current price). This is to protect short investors.
A Sell Stop will sell once the target price is reached (You set it below current price). This is to protect long investors.

If you don't set the Stop above the current price for a buy or below the current price for a sell, the broker will likely return an error message.

Also, the shares will be sold at the bid (Market value).
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post #17 of 23
9/18/09 at 3:51am
Thread Starter 
Quote:
Originally Posted by qu4rk View Post
Not calling you blind in any way & if you took offense, my apologies. What I'm saying to you is that Chan explains what it is, how to use it & how to help make you money, but more importantly how use it to keep you from taking substantial losses.

I'll let someone else answer your question, but once you read Chan's post, you'll be apologizing to me.
Chan knows what hes doing, sorry
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post #18 of 23
9/18/09 at 1:27pm
Quote:
Originally Posted by Stock King View Post
Chan knows what hes doing, sorry
No prob, bud. We are all here to help each other.
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post #19 of 23
9/20/09 at 10:29am
Thread Starter 
Another question.

Can you hold penny stocks long term? Long term meaning for a couple months? I see a lot of penny stocks going up in value since March of this year. If I bought some in march and sold now I would have nice profit.
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post #20 of 23
9/20/09 at 11:35am
Quote:
Originally Posted by Stock King View Post
Another question.

Can you hold penny stocks long term? Long term meaning for a couple months? I see a lot of penny stocks going up in value since March of this year. If I bought some in march and sold now I would have nice profit.
You can hold pennystocks your whole life, if you want. I don't recommend that though.

Most of the times a pennystock pops and then sells off very quickly. Some go from a penny to a couple of dollars and stays on that level. So, everything is possible.

A pennystock is a normal stock (only low value), so you can basically hold it for 50 years or longer.. at least if the company still exists by then..
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