Archive for February, 2010

Marching in the new list!

February 28th, 2010



Penny Stock List to keep an eye on. Our double bottom play from last week is OPMG should continue.

PENNY STOCKS BOTTOMS:

AEXP .25 this one looks great. Sitting on the bottom with positive divergence, its a MUST.

BFRE .38 bottoming.

CPCF .69
IXMD .30
NVLT .25 not ready yet but bottoming

PENNY STOCKS PUSHING THE TOP

ATTUF .39 its a 52 week high and has been for a week, tight sideways 50dma ready to push it up.
BETM closed at .30 began at .16 nice one day pop. Needs to be watched.
RBYC .31 Been watching this one walk up weekly since the teens. Still Going Low Volume

Other Bullish Penny Stock Picks

CLSP .41 was .50 higher 2 days back and all candles are bullish.
SPBU .20 staircase up since .10 and room for more.

ELTP .09 trading between the 50 and 200, support is the 200 dma and the 50 dma is resistance, .09 and .10 could go either way but when it pops it goes up 100%….check the chart :)

Don’t run out and buy them all, chart them and lets get ready to rock this week!

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We caught OPMG on that double bottom!!

February 27th, 2010

Nailed it, OPMG took offon a fairly slow Friday. Our list came out Sunday and we had plenty of time to get in as it held the double bottom and traded sideways. Hopefully it runs for a few days, it pulled back a little towards the close of Friday. If we run expect some resistance at the 50 dma. If we pull back its a good buy (triple bottom) where we just left. Keep an eye out for news or filings that can change everything.

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Penny Stock Tools

February 25th, 2010

We all know that Penny Stocks are a risky investment. To reduce the risk of trading these stocks you must work on some basic guidelines of what the company looks like as well as the chart of the specific penny stock. The more knowledge you have about reading charts and the back grounds of penny stocks, the better off you will be.

Research is the key to finding successful penny stock picks. You will need a stock screener to find stocks that meet your first criteria. You will also need some help with reading about a companies financials and how to dig through their SEC filings. You must learn charting basics. We have a helpful forum on our site but still, don’t just trust, gather ideas and investigate.

Once you find a stock and the chart looks right, watch it trade for a day or 2 and then plan your trade. What price are you willing to buy at and what price will you sell. How can you determine this?

This type of research can be a chore, it can be difficult and tiresome. Finding ideas on our penny stock site will help you. Then you find a chart you like and then dig through the company. If you dig through a company before checking the chart, you’re wasting your time.

There are some things to speed along the process. Join our forum and become active, ask questions about stocks, read our newsletters, look at our picks and our screened stocks. Use the forum to bounce your fist picks off of others. We do a good job of getting rid of the pumpers, dumpers and other scammers but some still get through. So don’t just trust, do your own research and read our newsletters.

Your knowledge and gut instinct are the best tools out there, we like to provide a site that facilitates your learning about penny stocks and helps you spread your knowledge. To other learners we love if you place your picks and we can watch them run. As professional traders we love watching other people make picks, the more good eyes watching the market the better chance we have to score big! There are also plenty of articles we have published that can help you get acquainted with these inexpensive stocks and the difficulties of trading them.

The best part of The penny stock blog is the knowledge you can find everywhere you turn. Because crazy constant pumping is not aloud, the board seems quieter than other places where penny stock pumps are why the board was created.

You don’t want to use any one tool for determining how to trade these otcbb stocks you need to use all the tools mentioned and lean which ways work best. Sometimes, sitting on the sidelines is better than attempting poor thought out trades.

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Penny Stocks Picks List-Feb 20.

February 21st, 2010

Penny Stocks Picks Below! If you buy penny stocks, watch these, don’t rush out and buy, this is a watch list. These are stocks that should be put on your watch list after charting. The lower volume stocks should be watched for positive volume alerts while others should be watched for reversals.

Penny Stocks List at their Bottom:
BTML .24
FSWA .35
SRGZ .45

Double bottom OPMG .038

Penny Stocks List Breaking Out.
APNT .37
EQPI .35
SBAT .30

Short list this week, Good Luck!

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Strategies when Buying Penny Stocks

February 12th, 2010

We’ve written a lot of articles about picking the right penny stocks. This is obviously a very important step, the next is timing your purchase. When should I buy and how many shares should I buy are also important questions to think about. You should have your strategy mapped out before you make your trade.

The goal is to make money and you are able to do this if you buy low and sell higher. This will not always happen and you have to have your strategy in place. Be prepared to take a loss, will your sell be triggered by a certain % of loss or will it be triggered by support breaking. Set your stop loss and forget about it. You are buying the stock because you expect the price to rise, when it doesn’t there was a flaw in your strategy or your penny stock picks. Look back at our articles on how to review a company and what to look for in share price as well as share structure. If you do your due diligence and the stock drops in price you need to have that stop loss set. A penny stock can and will have you lose every cent you’ve invested in it if your not careful. Being able to minimize losses is a must when trading these low priced over the counter stocks.

Some traders will buy a company at a support level but will be prepared to add more shares if the company dips again where they will then add more shares. This can be a solid strategy but its risky as the stock may continue to fall and now you’ve lost more of your initial investment. The strategy can payoff by buying a second lot of shares and the price rises, you can sell, mitigating the loss on the first batch and sometimes covering the cost all together.

You sell shares to gain profit as the goal. Selling to avoid losing more money locks you in for a loss but that loss can be a lot smaller than full loss of investment. In the penny stock market you will take a lot of losses and have a lot of runners. What you need to be able to accomplish is let the winners run and maximize profit while dumping the mistake and lessening your losses. Cut your losses and let your runners run and never ever look back.

Selling for a profit is even tough. You may think its easy but its not. Your trading a thinly traded stock with a low float, you make the right call and news comes. The stock takes off and every tick is 30% gained and the amount keeps getting higher. Not selling has been reinforced now the stock begins to dip, if you sell here you lose a percentage of what you could’ve had, as you hesitate, the stock dips more. You hope it goes back up to the high and don’t sell. This happens all the time. Thats why we never look back. You will sometimes sell at the top and sometimes you’ll miss you can’t look back. Penny stocks are a quick trading game. Sometimes a split second is the difference between a thousand dollar gain or a hundred dollar loss. You need to be able to take quick profits as well as realize when you have the runner. Plan your trade out before time, entry and exit, then remember to trade your plan. Never fall in love with a penny stock.

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Posted in Penny Stock Investing, Penny Stocks

Penny Stock Picks: 6 rules before you Buy Penny Stocks

February 5th, 2010

Penny stocks are high risk, high reward stock plays. When buying these high risk stocks you must pick the right stock to buy at the right price. If you pick the wrong stock or you time your purchase poorly you will lose some money, maybe all of your investment. On the other hand with the right stock and the right timing you could make a huge profit on a small investment. This is stock trading and all stock trading is unpredictable, this becomes even more apparent in penny stocks. Even with research you will pick wrong some times, limitting the losses and riding the profits will enable you to be successful and limit your overall risk.

1. Its a safer to play the listed penny stocks or the over the counter bulletin board (OTCBB) stocks than the pink sheets. Especially when your just learning. The OTCBB stocks must file with the SEC so there is more information available on the company such as the share structure and financial background. You can also find plenty of low priced stocks trading on the major exchanges such as the nasdaq.

2. Look at a companies history, watch out for reverse splits, look for a long record of trading without manipulating stock price or operating shares. These companies will be safer. There is a lot of fraud in the penny stock market and looking at a companies history will help you weed out some of the bad ones. At first avoid “penny stock picks” especially of new companies, just watch the price you could buy at and outcome. They are not usually a good investment, but may be good for quicker trades once you know what you’re doing.

3. Find out what makes the company valuable, do they have a lot of land, oil, gas or diamond mines. Are they ripe to be acquired by another company, are they making their own acquisitions. Do they have patents on their products or patents pending. What is their reputation in the field. If you live in their area or know someone in that area, go visit the facilities.

4. What are the negatives of a company, what do they owe, what are they’re debts and liabilities? If a company you like has too much debt, when that debt is called they may need to sell shares (dump) into the market to raise the capital. Ideally you want a company with no debt for the time frame you wish to own it.

5. Penny stocks in the areas that are running on the major exchanges are usually a good bet, if oil is strong look for oil penny stocks. Same for gold et al. Emerging markets and fast growing industries are also ideal for investment. Stay on top of the market in general take that knowledge to these low priced stocks. Research what will be hot over next few years and then dig through these low priced companies.

6. Decide how much money you will spend/invest on penny stocks. Just a little bit of money, a small percentage of your portfolio and then don’t go over your budgeted allotment. Always be safe with your money, don’t fall in love with a stock, don’t risk money you don’t want to lose. Often traders will allocate 5-10% of their portfolio to the riskier stocks.


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