Posted on March 10, 2010 by Dana Salvo
In this article TheStockWizards.net will cover one of the best money making strategies when day-trading penny stocks. This trading technique is used mostly by full-time penny stock professional traders that are able to sit in front of a screen all day long. When played correctly the bounce play can be one of the fastest, easiest ways to make quick money in the professional field of trading penny stocks.
Warning!! A bounce play played incorrectly can totally wipe out your account if you do not know what you are doing. This takes a lot of experience to attempt this kind of strategy. The timing of a bounce play is very critical in nature. There are many factors that need to line up to attempt a successful bounce play.
If your personality as a trader or investor is very aggressive, this strategy will come very natural to you. Think of a bounce play as a rubber band. From for a moment pretend that you have a rubber band in your hand and take the rubber band with both hands and stretch it as wide as you can. The farther you stretch the rubber band the greater the force will be when you let go of one side. There is great force and velocity behind that. This is what you’re looking for when playing a Penny Stock bounce play. Read the rest of this entry »
Posted on March 9, 2010 by Dana Salvo
If you’re new to trading Penny Stocks this article will help you greatly improve your chances of becoming a better penny stock trader. We are going to focus on what professional traders call psychological support and resistance. What does this mean?
When trading penny stocks there are certain support and resistance levels that are known to professional traders as psychological levels. This has nothing to do with normal support and resistance levels that chart technicians use on a daily basis when looking for obvious support and resistance.
The psychological levels can be revealed on your level II trading screen. A level II trading screen shows you supply and demand for each individual stock. We will not go into a full in-depth review of level II in this article; it is something that all penny stock traders should look into. It is a very helpful tool. Read the rest of this entry »
Posted on March 5, 2010 by Dana Salvo
When trading stocks there is a saying that goes like this “A Picture is worth 1,000 words.” in this article we will identify positive and negative trends when trading penny stocks. Using technical analysis helps you get an idea what traders and investors are thinking about in any particular stock. All you have to do is pull up a monthly weekly or daily chart and you can get a quick idea if you have a positive or negative trend.
TheStockWizards.net uses some very basic technical analysis 101 to help you understand how simple it is to identify a trend. So if you’re new to trading to technical analysis this will give you a great education and a good start. Read the rest of this entry »
Posted on December 22, 2009 by Travis
How do you know when a penny stock is undervalued or overvalued? If you are new to penny stock trading this is very important. The difference in your timing of getting into a penny stock can be either huge gains or huge losses. We prefer the huge gains.
What we are going to do today is look at a few examples so you understand when you should be getting in a stock or getting out of a stock. We are talking about penny stocks not big board stocks in these examples just to make that clear.
Let’s use some examples of penny stocks that made huge gains in 2009. This was a year of biotech, medical equipment and pharmaceuticals in the penny stock arena. So the stocks we will use are from these sectors. Read the rest of this entry »
