I'm in the process in re-evaluating my dividend stock positions. Plan on doing a post on dividend investing soon.
Also after reporting my FAS/FAZ results, got me thinking and want to mention something which may get pennylanders out of the OTC mindset and thinking about the big boards.
Most every day I pull up IHUBs hot breakout board to see what's new. It's been over 6 months since I've seen any OTC stock run last 5 days. And I'm sure the OTC market is loosing interested pennylanders every day. The question is are they giving up and just stopping trading or are they thinking of other areas to trade. I want to keep you frustrated playing. Because IMO there's no easier way to supplement income, then trading stocks.
So here's my food for thought, if you're thinking about giving up. Because you don't feel you have enough cash to trade big boards.
Most OTC stocks, that are active, are adding or subtracting under 33% daily. And these pops and drops are not within any trending stocks. So the OTC market has been up 33%, up 15%; down 15%, down 33% pretty much. So by the time the average pennylander finds what's hot. It becomes cold. There are only flashes to trade. And there hard to catch.
The big boards offer trends, chart patterns and technical indicators to trade. While every pennylander is hoping for a good run. Your missing small gains that add up. Think about changing ones trading style from darkside pumps & dumps, to trading patterns and targets. Their around every day.
It's all in the numbers, as usual. Say you have $3k to trade and you put $1k in 3, weekly (3 to 5 day run) swing trade stocks, with 5% targets. Then close 2 for 5% gain and 1 for 2.5% loss. Plus $20 round trip trade fees each.
Trying $3k cash; $2k + 5% = $100 and $1k - 2.5% = -$25, then 3 trade fees -$60. Add it all up 100 - 25 = 75 - 60 = $15 gain or over all only .5% gain weekly or $60 a month. Not worth the effort to try big board stocks under $15.
Now try $9k cash; $6k +5% = $300 and $3k - 2.5% = $75, then 3 trade fees -$60. Add it all up 300 - 75 = 225 -60 = $165 gain or over all 1.8% gain weekly or $660 a month. Will another $660 help with your bills. Try big board stocks under $15.
Food for thought. Will your personal case benefit from thinking about trading small cap stocks, at the national exchanges, rather then wait for/ trying to catch, a big gain lightning strike at the OTC? Run the numbers.
Is a dead unused money, gambling trading style benefiting you as much as an active money, pattern trading style could.
Should you create a business plan and swing trade small caps. It's all in the numbers and your mindset!
AI
