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  1. #1
    Airblademrd Guest

    Default Learning about Trading Penny Stocks

    Hi all,

    I am new and joined as I see there are avid penny stock traders. I have been relentless in searching for more info on learning about penny stocks but internet search results are ridden with scams or penny stock pickers which I am just not interested in.

    I am interested in learning more about how they work, what sort of trading strategies apply to penny stocks that are perhaps not applicable to regular/high market cap stocks.

    If you could direct me to some resources, whether it be a website or a book, that would be fantastic. I basically just want to learn how different it's going to be trading penny stocks than regular stocks and what sort of criteria I should look out for.

    I look forward to making some friends here and hopefully learning valuable info. I am happy to share and hope to be a good contributor too!

  2. #2
    Airbladexvm Guest


    If you like buying fake companies, dealing with greedy insiders, and companies selling shares at 50% off to financiers only to have them promote it and dump on you - then penny stocks are for you!!!!

    Seriously, penny stocks are a rigged game, not for the faint of heart. BUT as long as you understand the risks there are ways to make money off them. Just read some of my past posts.

  3. #3
    Airbladetnf Guest


    Hi Blaine, I completely agree that most are shams, but I am happy and willing to put the work in to learning how to find the needles in the haystack so to speak (or write). It seems like fundamental analysis trumps technicals/chart patterns when it comes to penny stocks, I'm thinking I really need to know how a company works, how to research it properly and be resourceful in that avenue in order to make an informed decision. The problem is I don't know exactly what I'm looking for, and of course information can be duplicated from another source in order for a company to look legitimate. There's no doubt penny stocks are a crazy world, but I would like to learn about this niche as a sort of side hobby and to improve my fundamental analysis.

    Let me know where I can find some of your old posts, or where your most relevant ones could be found in terms of being introduced to penny stocks. I'm just paper trading a couple now, just to test out whether my decision to invest in them (though not real) was based on good reason. Also I am based in Canada, so we have tighter regulations in terms of how penny stocks are traded (ie no earnings from OTC/BB/Pink Sheet could be transferred to a savings account), this means I'll be limited in terms of which exchanges I can trade from. There's still so much to learn, but it would be nice to get started in terms of how I should think about them, as Enron's slogan was 'ask why' lol.

  4. Default

    If you want to spend hours upon hours trying to dig up the one good one out of a 100, have fun. Don't think of them as investments. It's about the trade. Make money and move onto the next one. I'm not familiar with penny stocks in Canada, but from what I have gathered by a few pumpers here they have far less volume. Thus liquidity is a factor that should be evaluated.

  5. Default

    Blane is right about liquidity. What you want to scan for is a stock that has enough volume per day so you will be able to get in any out of it. There are some companies under a dollar that are "real" companies that have a certain amount of revenue stream coming in, but they are often flawed, losing money, or have lawsuits or something going on with them, but that's why they are trading at .30 cents... The bad news is often already factored in. I have made money recently off of LQMT, and NEWL. Both are under .20 cents right now. There are a few other things you'll want to look for, like volatility. If a stock never moves, you are going to get tired of holding it. It's good to have an RSI over 1. If you need more help figuring stuff like that out, let me know.



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