I've been reading about penny stock investing as a way to make a bit more money and have been searching for
companies with good fundamentals, I have set alerts on these so when they go above a certain price (hopefully
an indication of a breakout) I will get a push notification. I'm also looking for stocks that have good
technical's but maybe not good fundamentals and set alerts for these as well. But It seems like once you find
these stocks it's just a case of tracking them and waiting for the Indications of a breakout eg. price, press
releases. I would really appreciate any advice as I've just started and all the information above might be
wrong, I would just like to know if it seems like I'm on the right track.
New to trading, advice on strategy.
Press releases are all that matter with penny stocks. Fundamentals are %1oo useless with penny stocks.
Penny stocks generally have bad fundamentals....most of them will be bankrupt within a year or so.
I generally look for news driven break outs or pull backs from overextension and base entry and exit off technical support/resistance and Level 2 feed. For play by plays on some of my trades see the Small/Mid cap thread I started.
I'll agree, penny stocks is a rigged game. stay away unless you work hard, practice a lot, paper trade, and develop a system based on technical analysis. When you've lost it all, come on over to options :)
John
My new book is now available on Amazon. It teaches you my favorite trade for beginners. The pros use the same trade every day. Or, if you'd like a free quick summary of what's in the book, you can get it here.
Check out Stock Market Insurance Trader at
http://bit.ly/SMITbooka.
“Everything you need to know is laid out plain as day in a simple to understand way. It’s so simple it’s BRILLIANT!”
“Highly recommend this text for someone who is new to options.”
“Simple to read, understand and apply.”