Low priced stocks swing trading

[Nick1984]

In my experience with penny stocks the best ones to trade are stocks that are in the biotech and mining (uranium especially) industries. These are the ones that are the most volatile so you can catch a lot of movement. These guys usually like to move between 5-15% a day. Thats heaps. If you look at the market cap of these guys the sub $500m stocks are way too risky cause the volume going through is horrible. But if you can find a stock between $500m-$1b then you can get some decent value going through each day between $500,000-$8m a day which is pretty decent if you're trading with a $50k-100k account. You certainly can day trade these guys and try to catch a portion of the move as WHY? says.

Brown, for the 100% returns you're talking about you really need to go in and do a bit of some fundamental research on the stock to see what the company does etc because if you try to catch those moves on most penny stocks you'll hit your stop before anything major happens. Your candlestick analysis seems very spot on though. This high volatily is why I say go for biotech or mining companies because a lot of these guys move up heaps on small announcemnts. I.e: If an explorer announces they just got a tenement somewhere in some 3rd world country where regulations are few and far between watch the price rocket up 40% in a day only to tumble down 50% later once the first few bore holes show low mineralisation or unrealistic strike depths!