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VSAStory

02/12/17 3:36 PM

#3328 RE: Crazyjake27 #3326

With stocks trading on NASDAQ you control your risk by utilizing stop market orders placed outside the ATR (average true range) for the timeframe you are trading. With lower liquidity OTC BB stocks One controls risk by position sizing. What this basically means is you may not be able to use stop market orders effectively so part of your risk management has to do with holding less of a OTC BB QB or pink sheet. That being said the potential risk reward of a stock trading at sub penny or just a few pennies is great. And with diversification even if 60% of pennystock plays in a given portfolio end up going in the wrong direction you can still make a tremendous amount of profit.
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VSAStory

02/12/17 3:47 PM

#3329 RE: Crazyjake27 #3326

Volume did not pick up on the chart until well below the $.25 range so
getting past $.25 would be very difficult to do in the near term as there will be a lot of profit-taking for anybody who is holding from current levels. Targets for the share price have to be based off a price to sales or price to earnings valuation in line with industry standards. They cannot be based off of the chart in any way due to the drastic increase in shares outstanding.