Thread: Point me in the right direction.

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  1. #1

    Default Point me in the right direction.

    Hello. I am new to the forum. My name is Isa. I think it is absolutely exhilarating that you can turn date into money. I need someone to point me in the right direction as to what type of strategy and technical indicators I should be learning.

    So I have a few questions. And ultimately my goal is to trade penny stocks, and achieve a 12 gain monthly playing only long. So far all I've figured out about the stock market is you want to create a decent watch-list with a smaller float if you're looking for good gains. I Google to see if there's any promotion going on for the stock. I look to see if any credible resources have said anything about the stock (CNNmoney etc.). I look at the history of of the graph, usually a couple of years back I see a pump and dump. So when it's going up 4 years later dramatically I assume it's another pump and dump. The only (technical indicator I look for is a "breakout". I do play on a simulator, I have had a lot of luck with large cap companies. And I would stick to large cap companies but money is limited. I will be getting a 2800 dollar tax return soon and I'd like to start trading with that. I know it's not enough for any significant gains but it's where I'm at.

    Also when I trade large market caps I just look at the graph to the one day, and five day, if it's trending I buy and I usually get it right. If the next day it's losing i just get out quickly.

    Please nitpick at everything I just said, I know I'm ignorant thus far with the stock market. I'm looking for some guidance.
    Here are some questions.

    -Is there any technical indicators that are proven to work more often than others?
    -Is there a better way to seek to see if there's promotion other than Google?
    -Should I consider learning to short or just stick with longs for now due to inexperience?
    -What should I study next?
  2. #2

    Default

    My situation was the same. But I decided right away that I didn't want anything to do with penny stocks yet. I then decided to learn to use option strategies as they allow you to buy/sell the more solid companies. Here is a quick video about one strategy for a small account.
  3. #3

    Default

    Options are far more advanced way of trading. Don't take my word for it. Learn about them
  4. #4

    Default

    No....the goal with this strategy is not to own the stock. Just to trade the options. This is just an introduction. There is much more to it.
  5. #5

    Default

    Because penny stocks are not quality products. If you can order a pizza you can learn to trade options.
  6. #6

    Default

    I have no problem with hitting the books. Is there less risk involved in options? Also are the gains more limited than penny stocks? I know this question is almost irrelevant but I had to ask.

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