I typically send out a few NEW ALERTS a week. I also send UPDATES on how the stocks are doing. Please do not enter into the stock when I send an update letter unless I say it may be a good idea. These updates are only to let those who own the stock know what my thoughts are.
AGAIN, Please do not enter a new trade based on an UPDATE letter no matter how good it sounds. It is often too late at this point and I don't want you to buy the stock when others may be getting ready to sell.
I do not send out price targets with our alerts. Typically when you see target prices in newsletters its nothing more than hype anyways.
Here are a few good ideas to keep in mind when trading penny stocks. As you learn and use them you will begin to limit your
losses and increase your profits.
The number one rule is to remember that the penny stock market is like the Wild West. There is risk around every corner. Assume everything you read or hear about every penny stock is a half truth at best. This market is filled with liars, cheaters, and thieves.
Most penny stocks will not be around two years from now in the same form they are now. Most will have gone through a name change,reverse split, and have new management with the next greatest business idea that they are going to carry out. Because of this I am never a long term player in these stocks. I am in most trades for hours to weeks.
Having said that, I love this market. Nowhere else can you find stocks that move so much as quickly as you can in this market. It is those moves that give us a chance to earn big profits.
PLEASE ONLY MAKE SMALL INVESTMENTS IN THESE STOCKS. NO MATTER HOW GOOD A STOCK SOUNDS YOU NEVER EVER BET THE RANCH. PENNY STOCKS SHOULD ONLY BE A SMALL PART OF YOUR PORTFOLIO. THESE STOCKS ARE RISKY. PLEASE DO YOUR OWN RESEARCH. THESE STOCKS ARE NOT SUITABLE FOR EVERYONE.
Ok, follow these rules and strategies and you will learn how to book consistent profits.
Always use limit orders when getting into a stock. Pick an entry price and stick with it.
Don't chase stocks. There will always be another trade right around the corner. Don't beat yourself up if you miss one. The last thing you want to do is over pay because you see a stock moving and think you are missing the boat.
Never use market orders to enter into a trade- Using market orders allows the market maker to fill you at whatever price they like and leaves you vulnerable to getting poor fills.
Watch the open
Watching the open is very important. You can learn a lot about how a stock may act in the first 10-15 minutes after you get in. The first thing I look for is lots of selling. If you are watching a stock that has an average daily volume of 50,000 shares and the stock trades 250,000 shares in the first ten minutes and it isn't moving this is not a good sign. It means there are large sell orders and they are probably only going to get more aggressive as the day goes on. If you see the stock tick up on a regular basis as you see buys on the offer this is a good sign. If you are in the stock and you see lots of buying and it's not moving GET OUT. Don't wait.