Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
I am doing my research on trading options too. I have been gathering info for months and I am just about ready to dive in. One of the best persons that I have found to help with understanding how to choose the right stock to play and the best strike price to enter at and the reasons why and when and how to exit with a profit is Cam24Trader. He has a huge selection of videos on YouTube and a huge following. Search YouTube for his name and subscribe, I don't think you will be disappointed. He is a conservative trader and does well. His website is thestockgarage.com he posts a daily watch list that covers penny stocks, big board stocks and options that he trades and that are good setups to trade. Check it out if you want to look at his past watch list and compare them with what actually happened in the market. Also check out
stockhaven.com, they have a live chat room that is free to join where you can get real time trades and setups that are actually being traded at that moment. Good luck with your trading my friend. I am sorry about such a long post but I hope it helps you as much as it did me. Happy trading.
Per the dictionary on Investopedia.com:
http://www.investopedia.com/terms/o/option.asp
Definition of 'Option':
A financial derivative that represents a contract sold by one party (option writer) to another party (option holder). The contract offers the buyer the right, but not the obligation, to buy (call) or sell (put) a security or other financial asset at an agreed-upon price (the strike price) during a certain period of time or on a specific date (exercise date).
Call options give the option to buy at certain price, so the buyer would want the stock to go up.
Put options give the option to sell at a certain price, so the buyer would want the stock to go down.
Investopedia explains 'Option':
Options are extremely versatile securities that can be used in many different ways. Traders use options to speculate, which is a relatively risky practice, while hedgers use options to reduce the risk of holding an asset.
In terms of speculation, option buyers and writers have conflicting views regarding the outlook on the performance of an underlying security.
For example, because the option writer will need to provide the underlying shares in the event that the stock's market price will exceed the strike, an option writer that sells a call option believes that the underlying stock's price will drop relative to the option's strike price during the life of the option, as that is how he or she will reap maximum profit.
This is exactly the opposite outlook of the option buyer. The buyer believes that the underlying stock will rise, because if this happens, the buyer will be able to acquire the stock for a lower price and then sell itfor a profit.
Does anyone know what options are and how they work?
Just an FYI, claytrader has a dvd and I purchased it and he really breaks it down for us newbies, been learning the hard way for a year with not a lot of good results, check it out it seems pretty straight forward. Good Luck!!
As someone who was burned by pennies pretty bad, I suggest to new investors to read, research and do some paper trading for a while.
Penny stocks on the OTC are generally bad news although you may occasionally luck out. Learn all you can about fundamental and technical analysis. Learn about different trading and investing techniques. A good learning series in my opinion is the For Dummies books. I am reading the Technical Analysis for Dummies now.
Very very true Cintrix. Good sound advice. I am toying around with futures with the paper trad system. There is no way to duplicate the points that you bring out using paper. The normal tendency is to be aggressive since you have no real skin in the game. It is a good time to practice self discipline and creating a trading plan.
I'm the one who generally gets up from the poker table, after winning a couple of hands, rather than give it all back to the house!
Then you are already ahead of the game because you are disciplined.
You have answered a huge question for me! I wasn't sure if one of the keys to penny stocks was diversification. I only have the one, and if fortunate with any one, wouldn't dump it all back into others. I'm the one who generally gets up from the poker table, after winning a couple of hands, rather than give it all back to the house!
Thank you both! It's great to have found a source for honest and knowledgeable advice!
Joe C offers good advice. The only thing I would like to comment on what he said is the paper trading advice. That is a good way to get started, but don't ever think that because you are doing really well paper trading that it will carry over into the real world of trading. There are two reasons for this. One is the psychological aspect. When you are trading with fake money you will trade differently no matter what you think. You may put more into a trade than if you were actually trading - you may stay a little longer in a trade because it isn't really your money - you may be more likely to buy something that you might be scared to buy with your own money. The other point is that when you paper trade you are assuming that you are getting your buys and sells where YOU pick them. That doesn't always work that way. Sometimes you know where you want to exit but when you put your order in it doesn't fill and immediately downticks. Same with a buy. You may see something that you go to buy and there are other buyers in front of you and you don't always get your fill where you want it. When you paper trade that doesn't happen. Getting your fill at your price points is another obstacle. Just keep that in mind.
Thank you Joe for your reply. I opened an account about a year ago, and started paper trading, then life kinda took over and I got away from it for a while. I picked it back up recently and started trading with a couple hundred bucks..woohoo! I'm amazed at how little education and sound information is out there. Rather, one is more likely steered towards these promos pumping their latest stock picks! I was looking to make this venture kind of a hobby, and if I make a few bucks..then great! Even trading with the "big dogs" on the NYSE, I would definitely be a very passive trader, so for me..knowledge is key! Any you would like to impart is most appreciated.
The penny stocks seem to offer some sense of comfort in that it allows an investor an opportunity to dabble with little capital
This is true. You could buy up so many more shares with little cash in something than in a big board company, but that is what makes them so dangerous. They attract those who don't have a lot of money in the first place. I suggest you try it out, one stock at a time. Don't over trade (like if you make money, don't immediately - throw it at another penny stock)- take your time.
Lol..thank you. I guess my question did fall under the "duh" section. Being new to this, I want to make sure I'm as educated as possible. The penny stocks seem to offer some sense of comfort in that it allows an investor an opportunity to dabble with little capital, and yet done wisely, one could see some return. I'm probably the smallest micro organism in this ocean right now..lol..and would probably not ever make enough money to become overly confident. Thanks for all your sound advice!
Also I suggest you follow the newbies board, there are a lot of newbies there as well as some very good traders, you can always find great answers there.
Good morning Mel. Be careful of those that are very excited about a certain stock and those that try to sway you to not buy a stock, it is a jungle out there for sure and there will be many that want to take your money and be happy about it. My best advice to you is to be careful in the advice that you decide to take. I would try trading on paper first and not risk your money until you have a feel for how it all works. Watch the highly publicized stocks, they are called pump and dumps for a reason. There is a rule that many use it is called a three bar rule. Usually a stock will breakout above the trend it is in and continue to move up for three days including the breakout day. The key is to take profits at the end of the third day or early the next morning. This is not fool proof but does cut some losses and preserves your capital. That is the key, take profit when it is there because it can disappear really quick. Do not get greedy and stay in a trade longer than you should, take your profits and remember you can always re-enter a trade if it continues upward but with more money in your account. There is much to learn and I wish you good luck, it is very exciting to pick a winner. One more thing, always do your own due diligence, trust only your own research. Others may have a different agenda than what is best for you. Plan your trade and trade your plan. Know where you will exit the trade before you enter it. Have a great day and happy trading.
I think in an ideal world we all would like to know where we could put little capital with moderate returns. I would suggest that if you decide to get into the penny stock market you don't trade with any money you can't afford to lose. If you make a few good trades at first, don't get cocky and think it is easy money. It's a jungle out there in the penny world and if you don't understand dilution and how promos work I would be careful. That is my advice to you. The majority of penny stocks that move bigly end up dropping back down again. There are some exceptions but most of them behave that way. Most of them are trading under a buck for a reason.
Thank you for your help. Can you offer any guidance for investors with little capital, who seek moderate returns?
go here and plug in a ticker:
http://www.otcmarkets.com/home
example: redg
http://www.otcmarkets.com/stock/redg/quote
you will see quote - look to the left and choose company info first
under the co description you should see the most current share structure (always check the latest filing to make sure that is updated) - under Security Notes you can find if there were any splits (forward or reverse) - there is other info on that page - sometimes you can find the transfer agent listed there, company website, officers etc.
Back to the left of screen - Filings and Disclosure - if they are a reporting company you will find the latest filings there where you can read all of them. The News at the left of the screen will bring you to any recent news releases.
That site will get you any listed info you need. As far as trying to find out if there was a promo on a stock you can try here:
http://www.pumpsanddumps.com/p/directory-of-touts.html
http://stockpromoters.com/Stock-Promotion-History.aspx
Beware of most penny stocks and I would suggest that you don't invest in them. Trade them very short term. Very few penny stocks are worth a long time investment. They can have a cure for cancer and if they aren't managed right it means nothing. Most of them have little cash and raise money at the expense of shareholders by diluting and reverse splitting. Be careful. And don't listen and believe the pumpers.
I am new to penny stock investing and looking for resources to educate myself. A "Penny Stocks for Dummies" so to speak, and wonder if anyone can point me in the right direction? I made my very first purchase REDG about a week ago, but I would like to know how best to research these companies.
Benny and cintrix.. thanks for your input.. I appreciate it!
Thanks for your input.. yes..since 2007 and I use Scottrade regularly but didn't really for penny stocks. I used Zecco for those trades in the past and just wanted to know what was a good, inexpensive, broker that users recommended. This is investor help, right? B11
Thanks for your help! GLTY
They also lower the commission to 7.99 if you make over 150 trades per quarter.
I use Scottrade...You've been here at ihub since 2007, and you're worried about 1/2 of 1 percent on a $7. trade...Try Bingo.
Not sure if it's the best, but I use E-Trade. It's a flat rate of ~$10 ($9.95 I think) per trade. Doesn't matter how many or what their price is. So, as long as you buy in decent quantity it seems OK.
Guys..what's a good broker for penny stocks now a days? I used to use Zecco and since they merged they charge .01 per share on stocks under $2.. also, my Scottrade works but they have that 1/2% on top of normal fee structure for stocks under $1... Saw Sogo but never heard of them as well as Just2trade and a few others.. Any suggestions or help would be appreciated and if you could also tell me why you recommend that broker if you respond I would be thankful..
Thanks!
Ahhhh ok so after I set up that account I'm good to go
First off, do you have a brokerage account that is funded? Once you do that you have to place your orders through them.
I'm looking into buying some stocks how exactly can I do that after I figure out which ones i want to
I know absolutely nothing about bitcoins. Anyone else who has any experience with this can chime in.
Hey guys need some help.
Where can I buy bit coins.
Seriously! Does anyone here read the stickies? The past seven posts to this board have been deleted because of being off topic for spam, Ihub questions, and stock picks. Please read the stickies and ibox before posting.
click on the person's name - then click on the About tab and you will see how many membermarks they have - to the left of the screen is a link that says Follow This Member - click that to add them - any Ihub site questions:http://investorshub.advfn.com/boards/read_msg.aspx?message_id=64607540
Can someone answer my question please?
How does the marker work? I have been on ihub for a couple of months but I usually use my iPad. I don't see any member marks for others and I don't know where to check for them. How do I give someone a mark and how do I know who has them?
Thanks in advance.
It could be anyone - retail painting the tape, mms, or it could even be partial fills.
Who generally does these 200,300,400 share trades getting the pps higher on penny stocks, especially close to closing bell?
You would be a passive investor then:
http://www.investmentfundlawblog.com/resource-center/investments-by-funds/acquiring-more-than-5-of-a-publicly-traded-company.html
I have never owned that much of one company. Hopefully you aren't putting it in a triple penny stock that could reverse split on you.
5% Ownership question....
I have reached the point where I can easily become a 5% owner in a small stock. I'd like to get some input into the relative pluses and minuses of doing so. I have no intention of any type of takeover (friendly or otherwise) or injecting myself into the day-to-day business of the company.
I do know that I'll have to file a form 13D when I cross the threshold. That could happen soon either through my buying or by the firm possibly retiring shares.
Any words of wisdom?
I would at least have $100,000 saved up before even thinking of being a full time day trader!
If the trades on a particular stock are showing 100% green and no red (sells), what does this mean? Looking the trades on IPAD app.
Thank you
I am also new lol
but have little to invest
Seriously, without trying to burst your bubble, considering a career change to become a professional investor with little funds will not work. If you really wanted to become an active trader where it would be your sole income you would need a lot more than "a little" to get started. I also don't recommend anyone doing this for a living who is new to investing. I have been doing this as a job since 1996 and I can't even begin to tell you how many people I know who I saw come and go. If you are retired or have a spouse who makes enough income and supplies you with health benefits it is possible, but it takes years of learning. Don't be giving up your day job to do this.
Happy New Year everyone!
I am new to the site and stock investing. I have dabbled a little in stocks; buying a few distressed shares using dollar cost averaging through an exchange; using a dividend reinvestment plan. I have seen some good results.I am mostly self-taught and enjoy reading the Wall Street Journal daily; along with other business publications. I am considering a career change to become a full-time investor; but have little to invest. What is the best and wisest way to accomplish this goal?
Thank you!
it means that there was a transaction below .0001 - it won't show up as a price because of the digits (.0001 is the lowest) - I don't think retail investors can even place an order below that price, but it does occasionally happen
i don't know if there is an ihub board for it, but you could make a customized scan and choose volume and price ranges - Etrade Pro has it and I am sure there are other platforms that provide it
if there is no bid or ask it means it is no longer trading or halted
Try the "The Question and Answer Board"...Happy Holiday.
Is there a way to change the white background to black from white on the levelI?
| This board is for general questions regarding investing/trading. NO IHUB QUESTIONS OR COMPLAINTS! |
Questions relating to Ihub site - post here:
http://investorshub.advfn.com/boards/board.aspx?board_id=504
NO STOCK PICKS ON THIS BOARD!
Investors Hub does not endorse nor is it responsible for the content of the information posted on this message board. We have not independently reviewed the information, claims and testimonials provided within this message board and make no guarantee or warranty regarding such content. The information, opinions and recommendations expressed on this message board are not those of Investors Hub nor the Moderators. As always, please seek professional advice before investing in any marketable security and do your due diligence.
Volume | |
Day Range: | |
Bid Price | |
Ask Price | |
Last Trade Time: |