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3 Rules About Trading Penny Stocks
1. Never risk more than you can afford and are willing to lose. Be sure the money you are using to invest isn't going to be used to pay your rent, mortage or put food on the table.
2. Don't fall in love or marry a penny stock. Just because someone says the stock will go to .50 or $1, doesn't mean that it will. Do not hold stocks too long.
3. Small profits add up big in the long term. If the stock goes up like expected, sell a small portion or be satisfied with a smaller percentage of profit to at least get back your starting investment. Over time small percentage profits add up!
Disclaimer: All of our penny stock alerts and picks mentioned are intended for informational purposes as per due diligence only and not intended as an offer to buy or sell securities. We are not licenced security professionals nor can we offer investment advice on wether to buy or sell any of the securities mentioned in our newsletters or board alerts. Penny Stock Pro v1.0 is not liable for any loss or damages you may have received as a result of any securities purchased or mentioned through our communicational efforts. We may or may not have shares in any of the company's profiled in our newsletters or board alerts. Penny Stock Pro v1.0 is NOT compensated for any current or past promotions in anyway. Investing in Penny Stocks has a high risk factor and may cause you to lose some or all of your investment. Never invest in penny stocks with money you cannot afford to lose. Please invest wisely after performing your own due diligence as well.
Alerted Stocks
SNDY- Alerted at 0013 - Went to .0102 for 785%
FTCH - Alerted at 0013 - Went to .0036 for 277%
TEMN - Alerted at 0004 - Went to
HRAL - Alerted at 008 - Went to .025 for 312.5%
MEXP - Alerted at 0009 - Went to .0016 for 178%
CMGHF - Alerted at .03 - Went to .094 for 313%
SUGO - Alerted at .0008 - Went to
EVDR - Alerted at .0005 - Went to .0031 for 620%
UMNG - Alerted at .0008 - Went to
SeccoTech's Penny Stock Philosophy
When investing, it's always very tempting to try and jump into a play that has either already taken off (in the process of running) or to jump in on hype. However, this is reckless trading behavior, especially if you are just starting out or have limited funds to invest with. If you are new to investing or are not educated to look for the tell-tale signs of a penny stock scam, or find things like a company's share structure, SEC filings, etc, you should look into subscribing to some sort of Penny Stock Alerting Service. If you are not sure which is best, please send me a message and I can recommend a few for you to do some DD on.
Investing on the OTC is extremely risky, however with that same amount of risk, the rewards can be even more lucrative. My philiosphy is very simple...
1. Start with what you can afford to lose. Lets say $500.
2. Find a solid platform for your DD, such as a proven message board on IHUB, a penny stock service (avg cost about $50/month), or a reliable source for stock tips.
3. Find a stock you like and get in at the appropriate time. Meaning, if the stock is already up 300%, don't jump in thinking it will run another 300%. Patience. This philosophy will take a lot of patience.
4. Do not hold the stock too long, but also do not assume you will double or triple your money in a few days. The longer you hold in hopes of larger profits, the more the odds are against you.
5. You should make a goal to double that initial investment in one month's time in 1-2 trades (2 at the absolute most).
6. Don't be greedy. If the stock runs 100%, sell half the stock and get your investment money back!!! Then you can leave your freebies in and work on another play.
7. Set a limit for loss. Pick a number that is acceptable for a loss to you. For me, I always set a stop loss price of 20%. This provides enough room for the stock to dip without it selling off automatically. If a stock drops 20%, it may drop even more, so now you can buy back in and get even more shares!
8. Do not marry a stock. Do not believe the hype. Get educated about charts and know when to question "to good to be real" results. Take posts like "We're going to the mooooon!" for what they are worth... not much without a lengthy DD report attached to it.
9. When you sell a stock. Don't look back. If you made money, be happy for the profits and move onto the next one. Small profits add up quicker than you think.
10. Last but not least, if you can double your inital investment once a month, in one year you could easily handle even more plays the next year setting you up to be a Penny Stock Professional!
Title: Top 25 Axioms Of OTC Investing
Subtitle: Understand These And You Might Have A Shot At Surviving The OTC Marketplace
INTRO
I am calling these 25 points "axioms" in that they are propositions that are not necessarily proved or demonstrated but rather are self-evident to those who trade/invest on the OTC. In other words, these truths should be taken for granted and serve as a starting point or a foundation when deducing or inferring other propositions about OTC investing. I will not seek to prove these axioms to you...they just simply ARE. An axiom appeals to no other authority for verification...it stands on its own as the truth. Therefore, with these axioms we are dealing more with beliefs and less with facts. But without fundamental beliefs, you will have nothing whereby to interpret the facts. So sit up and pay attention because the following are very important ideas that could keep you from losing your shirt and help you to win nicely at playing the OTC market.
1. The Center Stage Axiom
The longer an issue stays in the spotlight...the worse. There's always one or more good reasons as to WHY a company is trading on the OTC...especially if it is a sub-penny company. There have been many times in the past couple years I thought I had found that "true gem" that was going to be another Yahoo. I believed in it big time. I bought into it big time! But after the initial run and a dead-cat bounce or two...things began surfacing that were completely damaging to the demand for the stock. Simply put, the higher a stock climbs in the investing world, the more its rear end shows...and OTC butts ain't pretty. Are there the occasional rule breakers here? Yes (usually they are reverse merger plays). But those stocks are few and far between and they generally uplist very quickly to a higher exchange. As a general rule, the longer a company stays in the limelight, the more enemies it will attract. Bashers. Shorters. Bidwhackers. Apathy. New shares from various and sundry places (especially DILUTION and restricted shares coming off restriction). It's always a war to make the PPS (read: Price Per Share) go up on any issue. Don't stay too long at the war. Fight as long as you are advancing and retreat the moment you see the enemy reinforcements gathering. Or possibly better yet...retreat before you think you even heard the enemy reinforcements. Remember, it's not your job to make a stock PPS go up, it's your job to make your portfolio grow. OTC valor is much different than armed forces valor.
2. The Carpe Diem Axiom
Always take *some* profit when you're sitting on significant gains 50% or higher. Unless you are already independently wealthy and view OTC investing *only* as gambling for FUN (which isn't an altogether bad thing to view it as), take profit. The way to accumulate wealth playing OTC issues is to always exit too soon. Furthermore, it leaves one feeling pretty dern good when he left some on the table for the next guy and was not the chucklehead that singlehandedly killed the run. If it does make you feel good that you were the chucklehead that killed the run, shame on you. Always remember...you do not know the next time buying pressure will allow you to leak out of shares without injuring a stock and/or your portfolio! Seize the day. Seize the opportunity strong buying pressure provides.
3. The Itchy Trigger-Finger Axiom
Someone always has shares to sell to ruin a run. Read it again: Someone ALWAYS has shares to sell to ruin a run. Make this statement your computer desktop and/or screensaver. Say it to yourself ten times whenever you start your trading day. Paint it on the ceiling above your bed so it's the first thing you see in the morning. Please understand that someone owns a whole lot of whatever stock you're jazzed about at much lower average than you -- and often times they own it for NUTHIN' (i.e. compensated promoters, debtors, relatives of CEO, etc.). Also, if you think that YOU are the ONE that is holding all the shares that could potentially ruin a run...think again. Only God knows where all the shares are or will be coming from...because who knows what kind of shorts will attach themselves to your play and sell you nothing but VAPOR.
4. The Domino Effect Axiom
Almost everyone that loses money playing the OTC looks to point a finger somewhere. They want someone or some entity to blame for their loss. Forget that the CEO sold 100M shares into the open market, they'd rather lash out at the popular poster that promoted, endorsed, and otherwise "pumped"
AI
