Penny Stocks: Anatomy of a Trade (fka TOAST)

[crunkjuice234]

VoIP 5000, Inc
Stock Symbol :: VPFV

Overview
News


Overview


VoIP 5000, Inc.

Current Price: $0.06

52-Week Range: $0.01 - $0.22



Symbol: VPFV.PK


VOIP 5000, Inc. , (OTC PK: VPFV) formerly VOIP5000 Holdings, focuses on growing companies that operate in the new VoIP market. VPFV has acquired Clixme, a 100% wholly owned subsidiary, provides promising services that have VOIP 5000, Inc. continually interested and curious investors intrigued.

[newfy]

SOUTHENDSTOCKPICKERS ups the target on XKEM.OB again..$1.43 short term[from $1.35] & $7.08 long term[from $7.00]

[Coomasan]

Ok folks...I am new to this. I am going to break the ice and start trying to trade a little. I have a 401k but want to try to turn around a little short term cash. I was thinking about small caps. Is there an honest online service that gives decent advice on small caps? I get dizzy reading all of the promises and sales pitches on the web. I have no idea who to believe.

[snipersito]

Does anyone ever make money on penny stocks?It seems like a losing game to me.

[snipersito]

Does anyone ever make money on penny stocks?It seems like a losing game to me.

[excel]

Hi Reid. I understand you may have some knowledge about Scottrade. I'm changing brokers. Scottrade has a local office which I like for when you have problems. It isn't as easy to get rid of you in person then over the phone. Likes and dis-likesof them? TIA!

Excel - Greg

[sarals]

Hi Reid... have a question for you.

I was wondering what indicators you look for when looking for a trend reversal? Are there different aspects to a short term reversal (if there is such a thing) vs. a long term reversal?

http://www.askresearch.com/cgi-bin/chart?symbol=ASTN&country=USA&size=640x480&months=3+m...

tia

Sara : )

[Vendit]

http://www.investorshub.com/boards/live.asp

Reid

[Archangel]

I'm here...lol

Arch

[Vendit]

Are you still online?

Ill wait here for a little bit.

http://www.investorshub.com/boards/live.asp

Reid

[Archangel]

Alright Reid, got it loaded and have "Shortcut to Stocks" portion (of Quotetracker) as icon on computer screen. Where do I get the chart set-up - once there, I'll plug in your settings. But still looking...lol

Arch

[Vendit]

QuoteTracker can do it just fine.

http://www.investorshub.com/boards/read_msg.asp?message_id=139126

If you decide to try it out, Ill help you set it up where the settings are defaulted to all charts that you call up. I've been using that program for several years and know it well.

Reid

[Archangel]

Reid, what do you have that can chart pinkies and hold the settings? Thanks!

Arch

[vaheo]

Thanks Reid....

[Vendit]

The chart settings I promised you;

MACD histogram EMA1=(12) EMA2=(26) Smooth=(9)

MACD (fast/slow lines) K%=(14) %D=(3) %K Slow=(3)

Slow Stochastic EMA1=(12) EMA2=(26) Smooth=(9)

Chart style=(Candle)

Frequency=(1-minute)

Chart Period=(last 30-minutes)

General color scheme=(under water)

Quotes set to update every second.

http://www.angelfire.com/zine/NASDAQ/medved__2_.gif

Get the free QuoteTracker software here;
http://www.quotetracker.com/

Sign up for free streaming quotes here to fire your QuoteTracker streamer.
https://www.scottradestreamer.com/



Reid

[Vendit]

My pleasure.

I hope my explanation was clear. It is a little to explain technical analysis and how to read the indicators. It took me a good two years of daily study to begin to grasp the concept.

Reid

[vaheo]

Thanks, once I get it it will help me to utilize them effectively...

[EZ2]

Thanks Reid !!!!!!!
EZ

[Ruellit]

Very impressive explanation of a trading senario, I found it extremely helpful, thanks Reid.

muel <ggg>

[Vendit]

vaheo

I just formated this hard drive and will have to reload the chart tool you see in the linked post below in order to give you those settings. I should have them for you later today.

I hope this helps to clarify how to read intra-day signals.

http://www.investorshub.com/boards/read_msg.asp?message_id=138369





Reid

[Vendit]

ezcomngo2

I hope this helps to clarify how to read intra-day signals.

http://www.investorshub.com/boards/read_msg.asp?message_id=138369

The above setup works well for high volume penny stocks too.



Reid

[Vendit]

Look at the three small but tall chart windows that I have open in this picture of my desktop.

http://www.angelfire.com/zine/NASDAQ/medved__2_.gif

The first chart is the NASDAQ in 1-minute candle time frames.

The total time span that I look at is 30 minutes. By me stretching the charts tall and squeezing them 2 inches wide I get a very distorted or skewed technical view of a stocks movement in short time frames. The distortion is good because it greatly exaggerates the momentum or lack of momentum so you can easily locate (see) tops and bottoms forming within a couple of minutes as they form.

(All three charts above are showing intra-day sell signals in place. The MACD red/green cross-over is the signal)

Just below the main chart you see an MACD with histogram indicator. It also has included a fast and slow exponential (smoothed) moving average lines. Red is fast, green is slow.

The crossovers are the buy and sell signals. They are the confirming indicator to what I am reading on the Upper main candle chart.

The lower indicator is nothing more than stochastic. I use it at times to as a 3rd confirming indicator but not too often.

(1)- In order of importance I watch the candle color and whether they are trending up or down.

(2)- I use MACD fast/slow lines to confirm buy and sell triggers.

(3)- I use the blue MACD histogram to disclose how much trend momentum is behind a particular move.

(4)- I glance at stochastic for late or confirming cross-overs.



Reid

[Vendit]

It's really not hard to learn to read intra-day charts and pick out intra-day buy and sell signals. I have taught a number of other traders how to use the same tools I do.

You just have to adjust your thinking a little and throw emotions out of the picture to do this with a high degree of success.


Reid

[sarals]

Muel,

You're right... I was just wanting to see more in the price run up than is really there. Without good volume it can flop right back down awfully fast.

Sara : )

[vaheo]

What are the values you are using for MACD and stochastic ???

[Ruellit]

LOL I'm to confused to know if it's spinning!

muel <ggg>

[Ruellit]

Sara for a penny stock volume is everything and I tend to stay away from low volume pennys. A trap to be aware of is getting caught holding a stock that you cannot sell. Meaning there have to buyers before there can be sellors, in a lightly traded stock that is a concern. That is also a good reason for selling into runs.

muel <ggg>

[sarals]

Good morning...

Was wondering if I could get your take on a penny I've been watching for a while. It's been very volatile on low volume for months, but the last month it has had a fairly steady rise, although still on low volume. Does the low volume negate the reliability of the bullish rise in price? How much weight does volume have?

Sara

[EZ2]

muel - pleEZe tell me your head is spinning
too, so I feel better !!!!!
EZ :)

[Vendit]

I use 1 and 5 minute dynamic updating charts. I watch both MACD as well as stochastic, both in skewed windows. I need to find the desktop shots of my set up and post them so you can see what I mean by skewed.

I pay more attention to MACD intra day than I do stochastic.
1 and 5 minute candles are the next indicator I watch. I view only about a 30 minute history at any one time.

Ill go into more detail after I find the gifs I mentioned so you can see my setup.

Reid

[Ruellit]

Great response Reid, now I have more questions about the signals. When you are watching a RT Chart, what indicators do you use? If it is the fast Stochastic set for 5-3-3, what sign do you look for? Could you please described in detail? TIA

muel <ggg>

[Vendit]

are you saying never second guess, just get out or sell?


I am a pure technical trader when I trade. I rely exclusively on the signals. Early on during my learning curve I found myself kicking myself for not heeding the sell signals as they happened and watched as several no brainer profit taking opportunities turned into a loss.

It took several months to fully trust the signals and although they are never 100% correct, they will be right many more times then they are wrong so I like the odds of just trading the signals.

Reid

[Archangel]

the penny anatomy <ggg>...a good read

http://www.investorshub.com/boards/read_msg.asp?message_id=136520

Arch

[sarals]

I get it now! Thanks! eom

[Ruellit]

Reid when you say, "Rule number one; If you make an entry under 10 and the black line begins to rise as will the stock price........never second guess whether or not to exit your position if the black line forms ANY degree of an angle or bend on it's way to 80 on the upper part of the scale.
" are you saying never second guess, just get out or sell?

muel <ggg>

[Vendit]

It varies on stock and circumstance.

A 10 day moving average reacts faster on a chart in directional change than does a 50 day moving avrage because the 50 day average is calculated using 5 x the number of days.

The same is true when comparing a short time frame stochastic indicator like 5-3-3 which reacts faster than a longer time frame stochastic setting like 15-5-5.



In this next chart notice how the short time frame stochastic shows entry and exit points which are much closer to the cycle highs and lows. This gets you in nearer the bottom and out closer to the top. The drew back to short term stochastic is that if gives you a greater number of false signals but it is safer to use in a small cap stock IMO.



Reid

[sarals]

Thanks for the graph and analysis. My mistake was having the stochastic at the default of 15-5-5... which I have no idea what it means. I checked ClearStation, as that's where I first starting looking at stochastics, and it looks much more like your version. Could you explain what the settings mean? Should I always use 5-3-3 or does it vary on stock or circumstance?

Sara : )

[Vendit]

test



Reid

[Vendit]

This seems to be the best setup to trade MFNX.

Set stochastic to 5-3-3. Use only that one indicator. Watch the fast black line only.

>


Only buy when the black line falls under 10 on the stochastic scale to the right.

Always sell when the black line reaches 80 on the scale to the right.

Rule number one; If you make an entry under 10 and the black line begins to rise as will the stock price........never second guess whether or not to exit your position if the black line forms ANY degree of an angle or bend on it's way to 80 on the upper part of the scale.




Reid

[sarals]

Reid,

I think I'm experiencing first hand exactly what you are saying... looking forward to any further comments you have. Thanks.

Sara : )

[Vendit]

MFNX IMO does not have a regular rythum as far as price movement is concerned and not a good candidate to trade by use of those technical signals.

http://www.askresearch.com/cgi-bin/chart?symbol=MFNX&country=USA&size=640x480&months=3+m....

Ill fine tune them a little later today and try find a better combination to use.

Reid

[sarals]

Question about a chart...

I'm looking at the MFNX chart and see a nice oversold stochastic, a fairly nice little up trend for a couple days, but today it ended down a bit. Volume seems good. In general I'd like your comments. Also, I've read the description of OnBalanceVolume, but am not sure if the down trend is good or bad in this case. tia

http://www.askresearch.com/cgi-bin/chart?symbol=MFNX&country=USA&size=640x480&months=3+m...

Sara

[Ruellit]

The attitude of the IR guy I talked with was more in line with paranoid than it was cautious, thanks for your input, I value it much!

muel <ggg>

[Vendit]

The fed passed some regs recently called the Full Disclosure Law which makes even the smallest of publicly traded companies subject to open their books to a federal auditor.

This reg was passed in an effort to lower stock scamming operations and most of these companies are being more careful what they say.

Reid

[Archangel]

Muel, all about FD (from Scrapple board)

http://www.edgar-online.com/fdexpress/

Arch

[Ruellit]

Reid I just got off the phone with the IR guy from one of the companies I;m invested in. I tried to ask him some of these questions this message is replying to and he was very evasive with all his answers, actually he said not much at all. It appears the SEC regulation FD has put scare into him, any comments?

muel <ggg>

[Ruellit]

That sounds great, I won't let you forget!

muel <ggg>

[Vendit]

Re: colors on L2

Ill take a photo on Monday of L-II running and upload it and post it here for an easy explanation.

Dont let me forget.

<g>

Reid

[hasbro123]

GPXM DD tidbit...Here's an excerpt as copied from the GPXM RB board..it's from Jay Taylor news letter with the focus on gold..............Excerpt
---------------------------------------------------------
In general, only after gold rises into the $300 to $350 range do I think it will make sense to begin start focusing more on the juniors. Until then, I would continue to concentrate on "A" and "B" quality issues. "A" quality issues are defined on the back page of our newsletter as companies with producing gold mines. "B" quality companies are those having either a feasibility study or a pre-feasibility study as they are defined on the back page of our newsletter.

Among the "A" quality issues the following are currently on our page sixteen list. Agnico-Eagle Mines, Aurizon Mines, Crew Development, Durban Deep, Goldcorp, Newmont Mining, Placer Dome, Repadre Capital Corp., Richmont Mines, and Royal Gold.

The only stocks on this list that we are somewhat hesitant about buying a the present time are Aurizon Mines and Newmont Mining. Our reluctance with respect to Aurizon results from declining cash flows related in large part to a declining gold production. However, given a rising gold price not only will that help increase profitability on existing production, but it will also increase the likelihood that the Casa Berardi project, which has a resource in excess of 3 million ounces will come on stream.

Regarding Newmont, we note that given the company's large debt load its debt rating has declined somewhat. However, a rising gold price will help alleviate this credit rating issues as well. Overall, I have no problem continuing to own either Newmont or Aurizon though I may be somewhat more cautious in buying them than some other "A" quality issues.

"B" quality issues on our list include American Bonanza, Canarc Resources, Coral Gold, Gabriel Resources, Golden Phoneix, Minefinders, Nova Gold, Polyment Mining and X-Cal Resources. My top five picks at this time among this group are Nova Gold, Golden Phoenix, Minefinders, X-Cal Resources and Canarc Resources.

The "B" quality issues are really the ones we need to pay closest attention to because these are the ones that will be next to make really big moves. Having projects that are ready to place into production or at advanced stages, they are likely to attract analysts and investor attention very soon, unless the recent rise in gold proves to be a false start.

"C" and "D" Quality Issues later in the Bull Market

Given our aversion to companies with less advanced stage projects, we have largely avoided "C" and "D" quality issues. In fact among the gold shares, we have only two, "C" quality issues, namely Barramundi Gold and Eaglecrest Explorations. Likewise, we have just two "D" quality issues, namely IMA Explorations and Virginia Gold. All four of these companies could have explosive percentage growth in their share prices with a rising gold price and so if gold continues to rise, we will begin to pay more attention to lesser developed companies as the price of gold rises.

Lets just hope this is not a false start. If the Republicans are true to their free market rhetoric, rather than submit to the politically expedient actions of the Clinton Administration who obviously saw fit to rig the gold price as part of the bubble stock market and strong dollar fraud, then this could be the "real McCoy."



Jay Taylor

[Ruellit]

I'm beginning to think that knows anything except for Reid, Arch and myself, and I'm starting to wonder about those two! lol

muel <ggg>