WOLV
The TA looks good. Yes it has no buy pressure support. That's because it has no volume. There is a gap above to .035, so it should continue. But the volume is so small how can anyone make money.
On a good day it has 100k volume, @ .03, thats only $3,000 traded total. And if you trade less then 10% of the daily volume, as all should. Where's the beef?
Rule of thumb for trading pennies is 100 mil for triple zero, 10 mil for double zero and 1 mil ave weeks volume for single zero stock. Without this retail interest involved, in the daily trading, it becomes difficult to trade in & out quickly for profits large enough worth taking, unless your only playing with a couple hundred.
It's all in the numbers.
On average I'd guess a little guy trades $3 to $10k on a trade.
Say the stock price is .005 and one holds $5k worth. The volume is 10 mill and you are @ the 10% level, for 1 million shares. It pops 20% you pick up $1k. But if it trades 500k, not 10 mil and you hold 1 million shares on a 20% pop. Who the hell are you going to sell to? If you hold 10% of 500k volume, you only have $250 worth and 20% on that, will covers trade fees, plus a bottle of beer at the bar.
You need to have volume in pennyland, to make money! On the big boards you can make some cash on low volume stocks, because of the price level. It's all in the numbers.
IMO don't event look at low volume stocks in pennyland! Use my rule of thumb for needed volumes. And believe me, holding more then 10% of the daily volume gets very hard to sell out, in a quick moving pop play! Because you never sell on the way up, like one should. You sell too late on the way down and no one wants to cover large amounts in a retrace, only run. So there you are with 20% then 15 then 10 the 5% and you profit gets smaller and smaller. Experience!!!
I have a saying, Do what the big guys do. If you must buy large in a low volume pop, sell in the run, like the big guys. Don't wait for the turn. You may be able to get profits during the emotion up, but rarely in the way down! But sticking to the rule is best! Just don't buy large during emotion of a low volume stock. EVER.
AI
