Penny stocks anyone?

[steve]

I'm looking to invest in penny stocks. Anyone have any stock tips? Hot stocks on the market?


Thanks,
Steve

[Soultrader]

Steve, I have mentioned this to another member on the forum looking for tips and advice on a stock.

Please look here: http://www.traderslaboratory.com/for....html#post6296

We are not a forum to provide stock tips like "Buy stock ABC now!". We focus on sharing and helping traders improve as traders. The forum philosophy is learn to trade or be the sucker! I hope it makes sense.

[Nick1984]

Dont buy into the penny dreadfulls if your wanting to trade actively. The volume on these stocks is very weak so getting out may be a problem. I've usually found that it's better to hold on to them for a long time and let the price advance on its own if the fundamentals are right.

For the penny's i look at the fundamentals of the company. Its P/E, Div ratio, Board of Directors etc. cause if these companies dont perform they are doomed.

As for searching I search out by sectors first then narrow it down to specific companies. My critera is usually to have the stock at a minimum of 30c and a maximum of $2 per share with a minimum turnover of $120,000 a day on average.

Have your own set of rules in picking these stocks and make sure you do your homework cause you can loose a lot of money very fast, especially in Biotech stocks and Mining stocks.

[dalby]

my best investment ever (on a %age basis) was a (former) penny.

JSDA

got in when it was an OTC. is now in the 20's.

so, i'll always have a soft spot. but the fills etc. are RIDICULOUS. imo, spread it around (don't put too much into any one issue), and accept the volatility and games associated with them.

i totally agree that trading them actively can be very difficult

as somebody who trades CBOT, which has complete transparency and no MM games, pennies are another game entirely

[torero]

	Quote:	heluvamoo
	CYPO CyPost

Pardon? What does this mean?

[Kiwi]

Looks like a hot tip to me ... suggest these guys get the message that a repeat will result in banning (or something similar).

[torero]

If it is, then there's no place for pollution here. One more of that, we'll nip it quickly.

Please be advised, heluvamoo, that we expect more constructive and informative content and not frivolous tips. This site is not a hot tip hotline.

[Josiah]

The moderators are well founded in preventing "tips", as they say facts are better than tips. The point is that going the penny stock route is like going into a life of crime, you'll always going to have to "watch your back" (i.e. monitor stocks constantly), and "trust no one" (i.e. these stocks are quite volatile). That being said, if you have money to lose I reiterate "money to lose" invest in stocks traded on the Nasd owned OTCBB (www.otcbb.com). Invest only in stocks that provide timely sec filings. Also watch out for the fifth letter, example dalrq (the q means they are in bankruptcy). Here is a link on fifth letter designations: Fifth Character Identifiers .
If you want to make money make sure you always, I repeat always, look at the financials (financial statements) before you buy a penny stock. If you are just blindly speculating on stocks it's like playing the lottery.

[Josiah]

Also, one more thing, volume. Make sure, since you are starting out, that the stock you invest in has an average volume of around 1 million shares. This way you are ensuring that if you take a "hit" you will be able to liquidate your position. Good luck!

[wsam29]

My experiance with penny stocks is their technical patterns of accumulation are very easy to identify, the problem is finding them because there are soo many.