Posted on July 14, 2010
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.
The first stock that we will talk about is the one that could’ve made us all rich and well-off, if we just had 20-20 hindsight.
VRMLQ: This is a stock that was a life changer for a few traders in the penny stock world. The stock went from .05 to as high as $23, that’s right $23. Now you are wondering what made the stock go so high Read the rest of this entry »
Posted on July 11, 2010
Boca Raton,FL July 11,2010 Penny Stock Traders have been busy lately as Big Board NYSE stocks (OTC: BLOKA) , Blockbuster, (OTCBB: FNMA), Fannie Mae (OTCBB: FMCC) Freddie Mac have become fallen angels.
These 3 companies could not have picked a better time to enter the over-the-counter market. With small-cap stocks in the summer doldrums, traders and investors have been complaining about how slow it’s been the last couple weeks. Since being delisted, Blockbuster, Fannie Mae, and Freddie Mac have been top volume leaders in the over-the-counter market. All of a sudden traders have something to talk about again. These 3 stocks seem to be providing some nice liquidity for day traders and investors. Read the rest of this entry »
Posted on June 25, 2010
In this article The Stock Wizards will focus on Small-Cap Penny Stock OTC: STHG — Stratton Holdings Inc. STHG is a diversified holding company which focuses on reverse mergers, acquisitions, and joint venture partnerships in the area of real estate. A $1200 investment would have made you $40,000 in a short period of time.
We are in the dog days of summer. Sell in May and go way has kicked in. The equity markets look like garbage. The charts are about to roll over on the Dow Jones, S&P 500 and NASDAQ. Penny stock traders and investors are complaining that this is the worst market they have seen since the summer of 2008. Everywhere you turn there is something negative in the markets.
The question is, can you still make money in these markets? TSW says of course you can!
Filtering out all the pump and dump promotions in order to find that diamond in the ruff can be difficult. We see stocks go up everyday, only to reverse and go straight down, but every once in a while you can hit a home run. With everything being so negative in the markets lately, TSW would like to focus on something positive that gives traders and investors hope. Read the rest of this entry »
Posted on June 4, 2010
Penny stock investing has always been regarded as an investment opportunity for “everyone”. The ratio of investment and the return on investment (ROI) play a significant role in attracting bulk investment in penny stock companies. As a first time investor, many people are unaware of the leaps and bounces that a penny stock market has to offer. Things like risk management and company research are new terms for a novice penny stock investor. At times, day trading in penny stocks offer high volatility, which makes trading a heavy task for some investors and traders. Here are some tips that could help you out with making a sound investment decision in penny stocks.
Volatility Factor: Penny stock markets at times can be very volatile. The day highs and lows may show great differences. You might see your investment rally 100% one day then loose 50% the next. So, always make sure to book profits if you are not sure about the fundamentals of the penny stock company.
Research: Doing a bit of research before deciding on the penny stock portfolio is the key. Try and make sure to add those penny stock companies to your portfolio that have a strong foundation and great fundamentals. Keeping the volatility factor aside, such penny stocks are expected to give you good returns in the longer run. The management research or the order research of the company is also a good idea. Make sure that you also do a bit of debt research of the company in detail. These research tools always help you in understanding where the penny stock will stand over a specified period of time.
Hold your Penny Stock: It’s not every day you’ll find a stock to invest in. As a matter of fact, you’ll no doubt discard a hundred or more for every good investment you find. Once you find a good one hold tight. The penny stock instantly may not begin to show profits but good news about the company may always trigger a rally in the stock.
Investment Planning: Planning your investment is the key to the success of your investment. Make sure to invest a specified proportion of your earning into penny stocks. This leads to better risk and investment management.
I hope these inputs help you understand the methodology of investing in penny stocks.
The Stock Wizards is a leading stock advisor providing research based penny stock quotes. For more information log onto: http://thestockwizards.net/
Posted on
Penny stock investment is a fast catching trend in America and many parts of Europe. With a low cash investment opportunity and a high level of return on investment, penny stock companies have become the hot choice for modern day investors. Penny stock companies offer high volatility stocks, so as a penny stock investor, it is important that you follow certain golden rules. Here are some important rules you can follow while investing in penny stock companies.
Day Trading: Intra day trading of the penny stock is regarded as the safest method of investment in penny stock companies. You are advised to book profits on the day of placing orders. This eliminates any chance of booking losses on the carry forward orders due to the factors that might be beyond your control.
Management Research: This is again very important. You need to do a thorough research of the management of the company. This helps you understand the foundation of the penny stock company you are willing to invest in. The balance sheet, and cash flow statements of such penny stock companies may not look as good as some of the large cap stocks, but they have value to offer through sound management with experience who can lead them to the next level.
The Exit Strategy: As a penny stock investor, this is a golden rule you must keep in mind. Always know your exit strategy before you enter in a penny stock company. Also, know when to book profits or cut your losses before you enter the position. This is usually a more difficult mental commitment to make.
Be Volume Conscious: Be conscious of the number of shares trading hands everyday. This can drastically affect whether or not you can actually buy or sell shares. Having large volume will help you enter and exit your positions more easily. Look for average volumes over multiple days, as a single day of heavy trading could be the result of a large buyer/seller.
The Hype Machine: Hype always plays a role of misguiding an investor in any market. Same is the case with penny stock investment. You should always keep a check on the viability of the newsletters issued by various penny stock companies before you decide to invest. The parameters of your decision-making will vary depending on whether you are day trading or long term.
I hope these inputs provide you relevant information on making an investment in penny stock companies.
The Stock Wizards is a leading penny stock advisor providing quotes and calls on investing in penny stock companies. For more information log onto: http://thestockwizards.net/
Posted on May 30, 2010
In The Fall of 2009 when Bio-Tech Penny Stocks were dominating the market, The Stock Wizards had noticed a certain group of market makers working together to bring down certain OTCBB stocks. This Group of market makers is as follows: CHDN SSGI NOBL PUMA and STXG.
We have labeled this group of market makers as the RAT PACK. We’ll use another term for these market makers “Gang Bangers”. They look for Penny Stocks that have very high Market Caps. TSW noticed this week that the RAT PACK has an interest in a penny stock called KAT Exploration – KATX on the pink sheets. (See level 2 Example).
Read the rest of this entry »
Posted on May 4, 2010
So you want to get into the game of day trading stocks? Whether you’re a rookie or veteran of the stock market, The Stock Wizards encourages traders and investors to look for stocks with forward-looking events. What is a forward-looking event? A forward-looking event is when a company announces publicly through a press release that there will be some kind material event that will affect the company in the future. Another way of looking at it is using the term Catalyst.
How do we find such companies? We gather as much information about a company as we can before investing our hard earned money. Information is the key word here. Remember Michael Douglas’s famous quote from the movie Wall Street? “The most valuable commodity I know of is information, wouldn’t you agree?” And let’s not forget the high tech society we live in today. Information is right at our fingertips so there are no excuses for not doing the research. A little research goes a long way when searching for companies with forward-looking events. Read the rest of this entry »
Posted on April 4, 2010
I have $1,000 to invest. Where do I put it? Where can I make the most money in a short period of time?
Getting started in the business of day trading can sometimes be tough due to limited capital. However, most people can usually scrape up $1,000 to get started. The big question becomes where do I invest that $1,000 and how can I maximize my gains. You have several options. Let’s talk about where you could potentially invest your $1,000 and make it grow over a time frame of 12 to 18 months.
Consider the most common highly leveraged trading vehicles that are in the financial market place today. Read the rest of this entry »
Posted on March 10, 2010
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. Read the rest of this entry »
Posted on March 9, 2010
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 »
