Welcome to the Average Joe's Board. We're just a bunch of average joe's who are trying
to make a dollar out of 15 cents. No big egos here. We will share our trading tips, opinions and maybe share
some DD and alerts every now and then. We play OTC, Pinks as well as big board stocks. Picks should be based
on upcoming catalysts, DD, charts as well as volume scans. We will keep track of official alerts and their
progress in the table below. Always perform your own DD before investing your money. I will provide some
links to some good websites for your DD & charting purposes.
Average Joe's Trading Tips
1. How a stock trades is the most important factor
2. Ungagged Transfer Agents & transparency are a huge plus
3. A great entry into a stock requires discipline and patience
4. Go the extra mile with DD before investing heavy funds
5. When u find a runner, find out why it's running
6. When u find a big tanker, find out why it's tanking
7. Study L2 and MM behavior carefully
8. Charts & Indicators help but are trumped by material events (both positive and negative)
9. DD should always start with SOS's (Secretary of States), SEC filings, DTC, etc..
10. Learn how to look for red flags
11. Some stocks are good for investment while most are only good for trading. Develop a system to play both types of stocks accordingly
1. Do not CHASE a penny stock - there will be others to trade.
2. Have an EXIT STRATEGY and stick to it.
3. MINIMIZE losses and you will MAXIMIZE gains.
4. Don't MARRY a penny stock
5. Don't hold DEAD stocks - put that money into something else
6. Have DISCIPLINE on what and when to buy - you don't have to trade every stock.
1. DD is simple really. Always do your own DD.
2. SOS is your friend. About 80% of all penny stocks are incorporated in Nevada, Florida, or Delaware.
3. Don't try to day trade if you can't buy or sell at any time during trading hours.
4. Trust your gut and trust your strategies.
5. Learn to forget. Missing one trade does not mean you should miss the next. Don't mope.
6. One winner can pay for ten losers. You can't win if you don't play.
7. Never be afraid to sell. Pennies tend to keep falling without rebound. You can always buy more.
1. Charts don't lie, only people do ! (Learn the basics of reading charts & L2).
2. Always do your own Due Diligence.
3. Be very careful with promoted stocks & 'Train is leaving the station, get your tickets now' type of posts.
4. Discipline & Patience are the keys to success.
5. Remember tip #1.
6. Rinse & repeat.
1. Look for plays that most people haven't found yet, but not one so hidden that you're lucky if you get any trading volume.
Plays that are showing signs of life where volume seems to be expanding are the ones that I'll be asking out on a date!
2. Average down if a company's fundamentals, charts, and business prospects look good, not just because you are in the red.
I'd sooner cut my losses in a 'momo-play gone bad' than to average down waiting for the next bump if the fundamentals aren't there.
3. Never trade in the dark: L2, a good stock screener/ scanner and a basic awareness of charts are your 'tools of the trade'.
Personal note- I'll also do some 'analysis' of what's happening on I-Hub and the news feeds before jumping in.
4. A CEO'S past behavior is a good indicator of future behavior. Find out dilution history and quality of
communications with shareholders. Learn to appreciate predictability and transparency
5. Stagger your trading. Buy a starter and average down if you feel you have a potential runner.
Set staggered sell orders so you can lock in profits while leaving some chips on the table.
6.If a chart is telling me it is time to sell, I sell. It's called 'capital preservation'.
Losses out here in the 'Land of the Pinks' come mostly from greed, impulsivity and impatience.
1. The trend is your friend.
2. Understand support and resistance levels.
3. L2 is a must, otherwise, you are trading blind.
4. Charts are important and useful.
5. On news, charts, like bets, are off.
6. Be prepared to stop and turn on a dime.
1. Trust your charts.
2. Be patient, let your entry come to you.
3. Wait for confirmation on trend reversals and break outs.
4. Build core positions in reversals until your target area is reached, trading on the way up.
5. Take profit, then reenter from chart. Do not average down.
6. Only play pinks with play money. Early!
7. Have a plan, man.
~ If you are new to trading, keep a "trader's journal" of all of your trades / trading experiences that day.
At market close record your trades and include: ticker symbol, entry & exit pps, why you entered / exited the trade, etc.
Finish with, "Next time this situation occurs again, I will..." Use it to learn from. Reveiw it from time to time.
~ Learn at least the charting basics. They are useful to predict a stock's future movement.
Find the TA indicators that work best for you and stick to them.
~ Always check the share structure. If it cannot be found call the TA.
If they are ungagged that is a good sign.
~ How a stock trades is important. Pay attention to L2 and MM behavior.
~ Plan your trade and trade your plan. Discipline.
~ Protect Profits! Cut Losses!
~ Always do your own DD.
~ Dont chase.
~ Rule No.1: Never lose money. Rule No.2: Never forget rule No.1
A good read: Top 25 Axioms Of OTC Investing:
1) If you buy a stock, then go on a board and ask if it was a good buy, it probably wasnt. Know what your buying.
2) Penny Stocks are all P-O-S's, All Penny Stock CEOs are P-O-S's, and All Penny Stocks companies DIlute in some way, as long as you know and except that, nothing will surprise.
3) 95% of Penny Stock CEOs know absolutely nothing about finance
4) There is a good chance your stock wont go from .001 - $2..dont believe the hype, sell for profit and keep some in for a free ride.
5) Go with the money flow not against...you cant save a falling pps.
6) Charts actually do work in Penny land. I used to think this was false, but have learned quickly when there is a quite period (no news), the chart tells the story. that being said, NEWS TRUMPS ALL CHART READING
7) If you don't know what Level 2s are, get up, go to the toilet, dump all your cash in there and flush...your better off...dont trade if you dont have live L2s
8) All stocks have memory. That is, when a stock hits a certain price or has a volume surge, chances are it will do the same thing it did the last time the events occured
9) Never hold a stock with a gagged TA overnight...eom.
REMEMBER! MAKE YOUR OWN DECISION TO BUY OR SELL STOCKS POSTED HERE BASED ON YOUR OWN RESEARCH
Official Average Joe's Alerts Tracker