general questions about penny stocks

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rreif
Posts: 22
Joined: Wed Oct 28, 2009 9:28 pm

general questions about penny stocks

Post by rreif »

hello, excuse my ignorance but i am a complete newby to penny stocks. i have been considering getting into penny stocks for several reasons. however at times this seems to good to be true. i have been looking at a few stocks in particular. it seems to me like there is a catch. if i invest $2000 dollars in a stock that sells at $0.03 a share and it goes up to $0.06 a share i have just doubled my money. this does not seem right/legal/legit to me. i realize there is just as much a chance of it going the opposite way.

i have been looking at one stock in particular.
AUMY

dont ask why but it popped up while i was surfing the web for penny stocks and i just decided to watch it for a while.

when you invest in penny stocks, how much do you typically buy? do you move quite often as in every hour, or let it sit for a few days. obviously this is different from the tsp and i welcome the oppurtunity to have more control over my money.

any advice and help would be appreciated.

Thank you for your time.

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barryusa
Posts: 66
Joined: Tue May 31, 2011 9:28 pm

Re: general questions about penny stocks

Post by barryusa »

A penny stock is any stock that is under $3 in value. I have three I follow SYNM, IVAN, and PRTDF, all energy stocks that are very interesting and great management teams. I wait for them to hit support, ride them, sell, then wait to get back in again at support. I got into PRTDF at $2.03 on May 24 and sold today at $2.88. Now I'll wait for it to go down close to $2 and buy back in again. I took 1/2 a position in IVAN yesterday at $2.18 It looks like it has good support at $2.10. If it goes below that, it might go down to $1.80 and if it does, I'll buy my other 1/2. As far as how much to invest, don't invest what you can't afford to lose, don't be afraid to have your investment go down 50% before it cycles back up, and I have noticed with penny stocks limit orders close to current price will be taken out.
July 25 = 100% S Fund

slimfellow
Posts: 2
Joined: Tue Nov 10, 2009 3:52 pm

Re: general questions about penny stocks

Post by slimfellow »

If you don't mind me asking barryusa, who do you have as your broker? I've been doing some comparisons of online brokers and can't make a decision on who is the best to go with. Your help would be greatly appreciated.

rreif
Posts: 22
Joined: Wed Oct 28, 2009 9:28 pm

Re: general questions about penny stocks

Post by rreif »

thank you for the replies. i am also curios as far as who would be the best broker. i have been looking at vanguard but only because i have my roth ira with them. also how do you do taxes? do you have to do additional paperwork at the end of the year assessing all of your gains and figuring out tax?

Sarah
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Joined: Tue Dec 29, 2009 6:11 pm

Re: general questions about penny stocks

Post by Sarah »

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Last edited by Sarah on Wed Apr 04, 2012 8:38 am, edited 1 time in total.

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Winner
Posts: 621
Joined: Wed Jan 06, 2010 10:40 am

Re: general questions about penny stocks

Post by Winner »

rreif,
I would not buy more than $200 on any single penny stock since I consider them as loterry ticket (how many time can you break even), but you could be millionaire (dream on). I bought DKAM and MCET (yesterday gain over 400%). I will consider profit when I see the value at least 1K or more.

If you like penny stock, then I recommend you to learn stock option since it easy to profit 100% within the same trading day or you could gain 1,000% within couple of days. You can't short in stock when it was down such as Nokia, but you can buy put when the bad news hit any individual stock to pick up almost 200% since yesterday. With your $2k and all you need an average 20% a month, then you could be millionaire within 3 years by buy put on the bad news stock or during the earning season buy the stock that not met the "Analyst Estimates" such as LOW for last month or buy call with good news on the stock and you could pick up 20% within without a problem. Or just find out the weak sector such as financial and like yesterday buy put since S&P hit 1336 as I expected it's going and I purchased C, JPM and MSFT which I profit from 40% to over 100% on them. It look like tomorrow most likely an up day, then buy call on the strong sector. I did buy silver stock for under $2 for each contract and since this stock movement each day more than $2 spread that mean within week there is potential minimum 100% to several hundred % gain or totally lost or when I see profit 20%+ then take the money and run. Greedy is my #1 enemy. :oops:

By the way I have etrade since I trade a lot which I have power etrade and I also have guarantee execute with 2 second, but a lot people recommend option trader as it has lower margin interest and lower fee.
“A brave man knows the circumstances and consequences of what he may encounter ahead…..but moves forward anyway.”

Sarah
Posts: 631
Joined: Tue Dec 29, 2009 6:11 pm

Re: general questions about penny stocks

Post by Sarah »

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Last edited by Sarah on Wed Apr 04, 2012 8:38 am, edited 1 time in total.

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barryusa
Posts: 66
Joined: Tue May 31, 2011 9:28 pm

Re: general questions about penny stocks

Post by barryusa »

I use Fidelity. You can go with Scottrade for $7 per trade.

Always remember, when it comes to investing, hoping is not a strategy!

There is a reason those stocks are so cheap, so don't buy anything with "hoping it will" being the mean strategy why you think it will go up.
July 25 = 100% S Fund

DavidTiger
Posts: 135
Joined: Thu Oct 14, 2010 11:43 am

Re: general questions about penny stocks

Post by DavidTiger »

I just wish I had bought SIRI when I saw it at $.11. :(

Sarah
Posts: 631
Joined: Tue Dec 29, 2009 6:11 pm

Re: general questions about penny stocks

Post by Sarah »

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Last edited by Sarah on Wed Apr 04, 2012 8:38 am, edited 1 time in total.

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barryusa
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Joined: Tue May 31, 2011 9:28 pm

Re: general questions about penny stocks

Post by barryusa »

Ouch!
July 25 = 100% S Fund

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Winner
Posts: 621
Joined: Wed Jan 06, 2010 10:40 am

Re: general questions about penny stocks

Post by Winner »

Sarah wrote:Let's discuss DKAM. Look at the chart. In Feb 2007, it was $54 a share. Today, it is $0.0031 a share. While the stock may have risen for periods of a few days during these years, it's steady momentum has taken it continuously down, down, down. It has never been what one might call "an investment" during any period during this time.

Let's discuss MCET. Look at the chart. In June 2006, it was $1.55 a share. Today, it is $0.012 a share. As with DKAM, while you may have caught a sudden spike for a day or two, it's general direction has been down, down, down.

IMHO, this garbage is generally not worth your time or money.


Oh well Sarah, you are right about MCET that I sold for .0125 with small profit. I hold on to DKAM and just sold last Friday at .0064 for little over 600% gain (or 100% from June 1).

Will buy DKAM at later time.
“A brave man knows the circumstances and consequences of what he may encounter ahead…..but moves forward anyway.”

danielharr
Posts: 2
Joined: Thu Nov 03, 2011 8:38 am

Re: general questions about penny stocks

Post by danielharr »

You should visit to-:www.stockprofessors.com to get all the answer of your questions. Best of luck...



hot penny stocks

danielharr
Posts: 2
Joined: Thu Nov 03, 2011 8:38 am

Re: general questions about penny stocks

Post by danielharr »

You should visit to-: http://www.stockprofessors.com to get all the answer to your questions. Thanks...

timtom
Posts: 2
Joined: Sat Jun 18, 2011 4:57 am

Re: general questions about penny stocks

Post by timtom »

You can get all the answer to your questions by visiting-: http://www.chasingbeta.com. Thanks in advance....

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