Welcome all to OTC Training
This board is for learning the art of trading pennies. Sharing strategies, what to look for and the process of DD(due diligence).
If your new to trading and are interested in learning about penny stocks then please, no shame here, post. We all have to learn some how.
1) ONLY PENNY TALK. Please, Lets keep to the topic of only penny trading.
2) NO BUYING SUGGESTIONS. This board is for learning and helping each other to develope strategies in trading. NOT, have you heard about this one. Better get in before it takes off., crap. Save it for one of the other boards. NO PUMPING!
3) NO SHAMING. This is a safe place. We are here to learn, so lets help each other.
Looking for moderators. If your a seasoned penny trader that would like to share your knowledge of how you do DD and your trading system. Please message or post letting me know.
Glossary of Terms Used This will be an ever growing list of terms used here and on other boards. OTC
(Over The Counter) - Over-The-Counter stocks refers to any issue that is not traded on a regulated exchange. OTC-BB
(Over The Counter Bulletin Board) - A regulated quotation service that displays real-time quotes, last-sale prices, and volume information in OTC equity securities. Pink Sheets
- The pink sheets are stocks that trade without any reporting requirements or regulation, and have no responsibility to you, the investor. Paper Trading
- Keeping track of imaginary money in real investments, so that you can see how you would have done if you had actually traded. Ask
- The price at which selling investors are willing to sell their shares to buyers. Bid
- The price that buying investors are willing to pay for shares of stock. Averaging Down
- Buying more shares of penny stocks you already own, and getting the new shares at a lower price because the penny stock has been dropping. Short-Selling
- Short selling is the strategy of selling the shares first, then having the commitment to buy them back at a later date. Spread
- The difference between the bid price and the ask price. With penny stocks, you will generally see a larger price spread. Volume
- The number of shares that trade hands per day. Stock Screening
- Filtering a list of stocks down into a smaller list based on your parameters. DD
(Due Diligence) - This is the work you put in vetting a company or stock before deciding to purchase. Rally
- A sudden increase in the market value of a company. RS
(Reverse Split) - When a company reduces the total number of outstanding shares. Shares Outstanding
- Number of shares owned by the public and not held by the company. Stock Split
- This is dividing existing stock into more shares. It reduces the price per share. Volume
- Number of shares of stock traded. Float
- The number of outstanding shares available to trade. Merger
- Deals that unite two separate companies into a single new company. Reverse Merger
- An acquisition of a public company by a private company. Basically this is the fastest and easiest way for a private company to go public. Pump and Dump
- An investment scheme where untrue statements are made public for the purpose of artificially increasing the stock price. IPO
(Initial Public Offering) - When a company first issued its stock to the public. LOI
(Letter of Intent) - Document outlining one or more agreements between two or more parties before the agreements are finalized.
Disclaimer / Disclosure
ALL POSTS and VIEWPOINTS presented are opinion only. YOU always carry 100% of the risk when trading. YOUR MONEY, YOUR RISK.