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Posted: 11/18/2003 12:24:01 PM EDT
I've been trading stocks for several years now. Lately I've been getting into trading penny stocks(stocks with prices under a dollar)
It's an easy way to make a big buck if you know what you're doing. I made over $700 dollars today on one penny stock while sitting here between 9:30am-2:00pm. I invested in (FMDAY)
Any of you guys do the same? What are some of your picks?
Link Posted: 11/18/2003 12:38:33 PM EDT
Don't know much about trading, really wish I did as I've got some stock sitting there. Took a community ed class but it wasn't enough info. I watch my stock and various others and none of it makes any sense. The company that I hold posts record profits and a big dividend payout over past years and their stock drops $2 a share. Market goes down their stock goes up, market gains 100+ points, their stock goes down.

On the same note, it seems to me with enough research and cash resources, you could create a kind of artificial run on a penny stock, drive the price up and a few hours later, sell.
Link Posted: 11/18/2003 12:46:04 PM EDT
I did for a bit, then needed the money for other things.

That, and I don't have the time to babysit it like I'd like to.

It can be fun. It can also be frustrating.

My question is, which companies do you use to do the trading? I don't even remember which company I used anymore. (ie, ameritrade, etc)
Link Posted: 11/18/2003 12:46:42 PM EDT
I dont like those OBB stocks. They require much less due dilligence than regular stocks.

One stock I have been watching since LT's stock picking game last year is GSS, Goldenstar Resources, a gold prospecting company. Its price has gone from about $1.20 then to a close of $6.58 today, most of that move happened since the war started. Not bad for half a year's return, what?

Gold's at nearly $400/oz, if you haven't noticed. Been in a nice sustained bull market since March 2002.
Link Posted: 11/18/2003 12:54:04 PM EDT
IFTT
Link Posted: 11/18/2003 12:57:17 PM EDT
Before 9/11, I was kicking ass at day trading.

When those planes hit, I knew that my day trading days were over at least for the next year and a half or so.

I haven't gotten back into it yet because the market isn't predictable enough. But it IS showing signs of returning to a suitable environment for day trading. I hope to get back into the game before long.


Day traders are the wolves who prey upon the sheep who invest for the long term. Our gain is their loss...and a good day trader can pull a two percent profit on his working capital PER DAY, if he doesn't make any mistakes like buy too much at one time. You don't want to be a significant factor in the market!

CJ


Link Posted: 11/18/2003 3:12:31 PM EDT

Originally Posted By FanoftheBlackRifle:
I did for a bit, then needed the money for other things.

That, and I don't have the time to babysit it like I'd like to.

It can be fun. It can also be frustrating.

My question is, which companies do you use to do the trading? I don't even remember which company I used anymore. (ie, ameritrade, etc)


I use Ameritrade. They charge $10.99 per trade. I see on thier commercial today that if they don't execute your trade within 5 seconds the fee is waved. I'm happy with Ameritrade. They have alot of research info to help you make the right decisions
Link Posted: 11/18/2003 3:14:03 PM EDT

Originally Posted By Chimborazo:
IFTT



Link Posted: 11/18/2003 8:40:07 PM EDT
I've got some Worldcom (700 shares) that I guess classifies as penny stock. :)
Link Posted: 11/18/2003 8:58:19 PM EDT
I moderate this stock investor website...

www.superiorinvestor.net/modules.php?name=Forums

My name there is Bobjitsu. Come sign up, the info is really good and we need more traffic.
Link Posted: 11/18/2003 9:06:36 PM EDT
Link Posted: 11/18/2003 9:12:06 PM EDT
Will do Wolfpack!
Link Posted: 11/18/2003 9:28:35 PM EDT
OK Ive got a question...

Anyone have recorces on penny stocks for the beginner?

Id be interested with playing with a hundred bucks or somthing trading on a short term basis. first thing to do would be setting up with an online trading place ie ameritrade?
Link Posted: 11/18/2003 9:50:40 PM EDT
A couple of years ago, I bought 6000 shares of Saf-T-Hammer (Smith & Wesson) at $.86/share. Sold it at $2.86/share.
Link Posted: 11/18/2003 11:12:19 PM EDT
I buy penny stocks with the hopes that they become multi-dollar stocks. I think trying to scalp 10 cents on a 50 cent stock is way too much work and counterproductive.

So far, my best has been Bema Gold (BGO), which I bought at 30 cents two years ago, and it's now at $3.99 and still going strong. The word on the street is that the stock will probably be gobbled up by another company sooner rather than later.

[Note: This is not investment advice. ]
Link Posted: 11/19/2003 12:14:27 AM EDT
Here are some day-trading houses. I think the fees from a place like Ameritrade would kill ya, plus I know that Sharebuilder.com only carries a small selection of stocks.

www.speedtrader.com
www.tradingday.com
www.interactivebrokers.com
Link Posted: 11/19/2003 7:15:52 AM EDT
Link Posted: 11/19/2003 7:46:15 AM EDT
I've been wanting to do something like this for a while but I'm not sure I have enough time. How labor intensive is it? Do I have to sit in front of the computer all day?
Link Posted: 11/19/2003 8:00:16 AM EDT
Link Posted: 11/19/2003 8:14:55 AM EDT
I bought a few hundred thousand shares of gwdl.ob and got out when it went up and made a few hundred bucks on a fraction of a cent swing.

About the cheapest stock I currently own is LU and that stuff is gonna buy me a new house in a few years.

Link Posted: 11/19/2003 8:41:29 AM EDT
Link Posted: 11/19/2003 8:42:52 AM EDT
Link Posted: 11/19/2003 9:26:05 AM EDT

Originally Posted By CAPITALIST:

Originally Posted By Chimborazo:
IFTT






That stands for In For The Tag. I invented it...aren't I cool? Anyway, I didn't have time to read it, and I didn't want to forget about it.

I made some money this year off of ABP. I held onto it for three months though. I bought at 0.47 and sold at 1.00. I wasn't complaining. I'm looking for something else right now, although I haven't looked very actively.
Link Posted: 11/19/2003 10:25:51 AM EDT
Just to show how quick you can gain money with penny stocks, I put $2346.00 into (spaz)at .17 cents a share at 9:35am. I turned around and sold all of it at 10:15am when it went to .21cents. I made $552.00 in 40 minutes. Not a bad days work. Don't get me wrong, you can lose to If you don't do your research
Link Posted: 11/19/2003 12:34:01 PM EDT
Hey Capitalist, and others:

Is there any particular 'system' you use for this day trading? I've looked through a few books on DT, and each one of them seems to have a system by which to do things. One that is particularly interesting to me is Dr. Van Tharp's system. Anyone have experience with his stuff?
Link Posted: 11/19/2003 2:48:37 PM EDT
[Last Edit: 11/19/2003 8:31:40 PM EDT by cmjohnson]
Trading in penny stocks and day trading are often very closely connected, as a lot of penny stocks are bought and sold in the same day, which is the definition of day trading.

Here are my personal rules for day trading:


Research for news, good, bad, or indifferent, relating to any company whose stock you are interested in trading.

A suitable day trading stock has the following attributes:

Relatively large daily average trading volume. For me, that means a million shares per day on average, or more. This is important for several reasons, one is that you want a stock that actually is active, and another is that youi don't want to be a significant force in the stock's movement all by yourself. If you're buying or selling five percent of its daily volume, your own actions will probably affect its value more than the rest of the market will, and not in a good way, most likely.


Relatively low cost per share. Within certain limits, the lower the better...but not so low that the stock is clearly a symptom of a company that's at risk of going tits up at any moment. You want HEALTHY company stocks, not those on life support.

Fairly high volatility, that is, the stock should be EXPECTED to swing up and down at least a full point over any given trading day on average when looking its average daily performance for the past several months.


Lacking any unfortunate news, the thing to do is to watch for the "daily dip" which many stocks exhibit, at least if they open the day UP from the previous day's close. This is the "morning profit taking" and that's when you buy in.

Depending on how many shares you buy, you pick a reasonable point gain to wait for before you sell. If you bought 5000 shares of a 2 dollar stock, if it goes up just a tenth of a point, there's 500 bucks for you. If you set a very reasonable goal of 2 tenths, you've made a grand today. But...this is a judgement call...are you going to sell when it's going up? My prefernence is to hold until the stock peaks and then I sell as soon as I see it slide back.

But you have to factor the price of the stock and the size of the point gain in as well. You can't expect a full onee point swing on a stock that sells for five bucks a share, but you CAN expect it on a 20 dollar stock. So the cheaper the stock, the more desirable it is to just sell at a desired point gain and NOT wait to see if it goes higher...because the change, though small, will quite possibly be too big and you'll end up back at square one. I don't recommend the "hold to peak and sell on the first dip" approach unless the stock has swung upwards of at least half a point, which suggests stocks in the 20 dollar and up range.

Of course, you could follow my advice to the letter and totally lose your ass. Or you could make a few extra grand a day and buy a new house in a few months. Nothing is certain and I make no guarantees or warranties if any kind. If you follow my advice, you do so on your own initiative and with no promises from me. It might work, it might not.

But it has worked for me. And I hope it will again soon.

CJ
Link Posted: 11/19/2003 6:26:51 PM EDT
Thats very good info cmjohnson. I look for a stock between 15 to 59 a share to buy. A stock that low doesn't need to make much more than 4-10 cents a share to make a nice profit. Like I posted in my previous post, I bought a stock today for .17 cents a share and sold it in 40 minutes at .21 cents and made $552.00
I never made that in a weeks pay at the last job I had 8 years ago. Everybody is different and has different skills. Some will make out like a bandit and some will fail. Only you know your potential.
Link Posted: 11/19/2003 7:31:38 PM EDT
Yes... I do the penny stocks. Anything that trades under $5 a share is considered a "penny stock"

I've made some pretty decent money trading the swings with SIRI. I have also invested in other penny stocks like Earthshell, Lucent, Sun Micro, and Xybernaut.

Started a year ago with $1000 and have built it up to $3700 now.
Link Posted: 11/19/2003 8:05:28 PM EDT
I've been playing with WLDI for about a year now. It's fairly predictable, but only invest what you are willing to lose. It's at .006 after a run up to .0085 a couple days ago. I've been buying a couple hundred thousand shares in the .0025-.004 area then waiting for alittle run which always seems to come. There are lots of pumpers for this crappy stock.
Link Posted: 11/19/2003 8:35:12 PM EDT
There was a stock I was watching for a while a few days ago that was absolutely SCARY. It was swinging a solid FIVE TO SEVEN POINTS A DAY, like clockwork, for several months straight. Averaging over 20M shares traded a day. And selling for 50 to 80 dollars a share.

It was a Brazilian utility. It was due to be taken over by the Brazilian government, and that explained the instability and great potential (and risk) for fast profits.

Once it WAS nationalized, the stock dropped to PENNIES a share.

I stayed out of that one, fortunately. But it was an extreme example of what COULD happen.

CJ
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