I adjust my expectations accordingly when trading penny stocks versus regular stocks. In the past 2-years, FREE has had about 4 huge runs - I have traded each of them for nice profits. A 200% run for FREE is no big deal - the company has been destroyed over the years - down from $45 a share to .20 (was $4.5 a year ago, which is of course more relevant). Massive drops like that lead to huge bounces if and when the bounce comes - works the same for all tickers; the further they have fallen and the lower they are, the bigger the bounce potential (stocks follow the laws of physics just like everything else). FREE is of course a high risk/high reward play. Obviously I expect it to go up or I wouldn't be in it, but I would be either a fool or a liar to suggest the risk isn't also high. However, I think the risk/reward ratio on FREE tonight is very good. These are the types of plays I hunt for - history of big runs - high short interest (close to 50% of float here) - coming of an historic low - high volume surge - gapup - close at or near HOD - history of gapups. When all the variables are there, I go for it. I was in this one today at an average cost of about .25. The 75% run today is no big deal - the ticker was .35 a week ago - you have to adjust you expectations when looking at such volatility. I think we will touch $1 out of this run. In the past, we have had some ridiculous volume on this ticker; we are set up to have that again. Don't be surprised if this ticker gaps up 10-20% tomorrow and is up 30% by 10AM.
Whoever loves money never has money enough; whoever loves wealth is never satisfied with his income. I have seen all the things that are done under the sun; all of them are meaningless, a chasing after the wind. Only trade for the sake of trading.
