World Surveillance Group Inc (fka WSGI)

[lowtrade]

Thanks for all the encouragement, as it seems some here value the bull I rant about, I thought I'd post my thoughts about trading in general, OTC:BB, and going to the computer as a job. I posted this info on RB back in May 2004 to a guy just starting out.

Don't want anyone to think, I think, I know more than any other trader, but I can remember when I decided to stop working and trade for a living. The few lines below, took me months and months to grasp on my own. Hope this post may help someone.
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IMO
I only use TA to find a growth stock, OUT OF THE PENNY STOCK AREA, then spend alot of time with DD research on financials, companies sector, business potencial, and management, before using TA to determin a buy in price and exit price...

Penny stocks are a completely different game, because they are mostly opperating with no profits or cash. Thus, day traders, MM's and company management errors can cause a huge change in PPs (% gain and loss) and render short term TA pattern useless...

Penny stocks are more about your belief in the companys business plan and the management potencial to execute the plan... IMO they are a gamble, not investment ! TA is good for investing..
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Full time trading ( working for a living)

Take the money you have to lose, divide that by 4 and invest 3/4th and gamble 1/4th.

Say you have $10,000,
On ave you will see a:
10% swing $.10 to $1.00 stocks
5% swing $1.00 to $5.00 stocks
2.5% swing $5.00 to $10.00 stocks
2.5% to 1% swing on stocks above $10.00

Using the above you can figure how much you can expect to gain/lose placing your money in the different ranges.

EX: You put $2500 (1/4)in a $.10 stock and on average you can expect to see $250 +/- with an ave 10% swing.

EX: You put $7500 (3/4)in 3, $5.00 to $10.00 stocks you would see $62.00 ea. or $188 +/- with an ave swing of 2.5%

Now say you want to earn $500 a week. Thats only 5% of your $10,000 and can be reached safely,in the $5.00 to $10.00 range, Hitting 1 to 2.5% on 3 stocks 2 or 3 times per week. With good research, do your DD !! One stock rise protects you from other losses. It's slower but safer, if you can't hit 5% on 3 stock picks (ON PAPER)in the $5.00 to $10.00 range, each week, start using your money, don't play until you can.

Think of the 1/4 or $2,500 you use in the penny stock area as cream or toilet water....

At any rate hope this gives you some ideas !!!
PS: Pick a plan, test it on paper trading and STICK to it !!!! only buy when the stock hits your buy target and always sell when it hits you sell target... Don't EVER chase a running stock.