1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Penny Stocks - Big + or Big -

Discussion in 'BlackHat Lounge' started by WnrWnrChickenDinner, Dec 18, 2010.

Tags:
  1. WnrWnrChickenDinner

    WnrWnrChickenDinner BANNED BANNED

    Joined:
    Aug 21, 2010
    Messages:
    254
    Likes Received:
    274
    I am just starting to get involved in penny stocks. Im using etrade and I see the potential to earn but I also see the potential to lose a lot of money. Its a risk but one I am going to take.

    Does anyone have any advice on a stock thats doing well as of now or will do well. Again this is a hard question I know I am just curious if someone has some insight.


    WnrWnr
     
  2. Leila

    Leila Registered Member

    Joined:
    Nov 7, 2009
    Messages:
    73
    Likes Received:
    255
    It depends a lot on what type of trading you want to do? Do you want to invest for the long term or to do intra-day trading?
     
  3. WnrWnrChickenDinner

    WnrWnrChickenDinner BANNED BANNED

    Joined:
    Aug 21, 2010
    Messages:
    254
    Likes Received:
    274
    I was going to do a bit of both. Some quick cash and some long term. You have any opinions on some hot stocks right now?
     
  4. frngdrn

    frngdrn Regular Member

    Joined:
    Jun 15, 2010
    Messages:
    234
    Likes Received:
    20
    rrl is one for the long term
     
    • Thanks Thanks x 1
  5. kiloh

    kiloh Junior Member

    Joined:
    Jul 6, 2009
    Messages:
    149
    Likes Received:
    32
    Occupation:
    Personal Trainer
    Location:
    California
    Home Page:
    Some penny stocks I trade are MCZ and FMCC. Madcatz has been very consistent for the past couple of years, especially during Christmas holidays since its video game accessories. Put them on your radar.
     
    • Thanks Thanks x 2
  6. hateandbreak

    hateandbreak Supreme Member

    Joined:
    Apr 17, 2010
    Messages:
    1,393
    Likes Received:
    1,528
    Gender:
    Male
    Location:
    Amidst the INTL Traffic
    --------> -
     
  7. Leila

    Leila Registered Member

    Joined:
    Nov 7, 2009
    Messages:
    73
    Likes Received:
    255
    First I should probably add a disclaimer, namely that I'm among those who believe that the sh*t hasn'tyet hit the fan and we're going to see a major crash and reorganisation of the financial markets. No, I'm not nuts but as soon as you start printing cash like there's no tomorrow to try and get the economy back in shape, you're asking for a major meltdown because for every dollar you print the value of that dollar goes down.

    Anyway, considering the above, I would go long for the long term in anything that is vital such as energy, food manufacturers and distributors and the like. Also consider shorting anything in the financial sector.

    When it comes to intra-day trading you should basically be using technical analysis and try not to trade during economic news releases because the market has a tendency to become extremely volatile and doesn't always move as expected.
     
    • Thanks Thanks x 2
  8. WnrWnrChickenDinner

    WnrWnrChickenDinner BANNED BANNED

    Joined:
    Aug 21, 2010
    Messages:
    254
    Likes Received:
    274
    Anything else guys Im getting some solid tips here Thank you.
     
  9. zebrahat

    zebrahat Elite Member

    Joined:
    Aug 6, 2008
    Messages:
    2,351
    Likes Received:
    2,891
    What worked for me in the '80's and early '90's was to find the blind initial public offerings where the penny stock price was $.01 or less, buy at least a 1000, and watch it double (as IPOs basically always do---there's no place else for a new blind stock priced that low to go, but up at least temporarily). Then sell off about half of the stock (get your money back out) and ride the rest long term. Rinse and repeat. That way you never lose money on risky companies.
     
    • Thanks Thanks x 1
  10. air360

    air360 Regular Member

    Joined:
    Apr 15, 2007
    Messages:
    428
    Likes Received:
    195
    I honestly dont have a lot to add to this topic other than ive done penny stocks before and doubled money in two days that allowed me to purchase a new laptop. Then i got out. haha.

    But what i really wanted to say here was that I appreciate those BHW members who have responded with positive and supportive feedback to the Op. when I read the first post I thought "oh crap this dudes gonna game blown away for talking about something risky like penny stocks that most think is crap"....but instead as I read through the thread i see nothing but real advice and support. Good job BHW :)
     
  11. WnrWnrChickenDinner

    WnrWnrChickenDinner BANNED BANNED

    Joined:
    Aug 21, 2010
    Messages:
    254
    Likes Received:
    274
    Thanks If you guys ever need anything hit me up.
     
  12. WnrWnrChickenDinner

    WnrWnrChickenDinner BANNED BANNED

    Joined:
    Aug 21, 2010
    Messages:
    254
    Likes Received:
    274
    I didnt ask anything that should be flamed. Also I have done my part here on bhw. I honesty dont know much about stocks and I was honest about that. I never tried to act the part.

    Again Thanks Guys.
     
  13. _l0ph0nis_

    _l0ph0nis_ BANNED BANNED

    Joined:
    May 20, 2010
    Messages:
    50
    Likes Received:
    6
    maybe http://www.timothysykes.com/ could be interesting for you. He dominates this niche :) I heard those vids are really good but can't proof it.
     
  14. bhdave.c

    bhdave.c Newbie

    Joined:
    Oct 24, 2009
    Messages:
    47
    Likes Received:
    29
    Penny stocks are most closely associated with pump and dump schemes, where stocks are brought in bulk by stock speculators and a massive campaign to promote the stock starts, jacking up the price of the stock.
     
  15. jrslyrics

    jrslyrics Newbie

    Joined:
    Dec 25, 2008
    Messages:
    40
    Likes Received:
    15
    Most penny stocks are manipulation scams. But, you can profit if you know what to look for. I probably should write an ebook on this, lol. Anyhow, things to look for are:

    Penny stocks that under go name changes with little to no volume previously is an indication that they are about to do something with the shell. A forward split is also a good indicator.

    Monitor yahoo finance news for filing docs. when they're filed with the sec, they are submitted electronically (edgar) and distributed immediately to all the major news outlets. You're looking for an "8K" document filing. Every company must file one of these when they are going to do a merger or change the business scope or management team, etc. You're looking for reverse mergers.

    Also, you could play the shorts...Whenever you get one of those spammy stock promotion emails, or faxes, you can take the company that's listed and look at some moving averages and watch it go up and short the piss out of it because you have real information by recieving that spam...its A stock promotion...also know as a scam. A pump and dump...whatever you wanna call it. 2 laws govern the stock market: the law of gravity, lol, and the law of infinite resources. The second law is important because it reminds us that there is no such thing as infinite resources. Resources have finite limits. Just ask yahoo (they just laid off 4% of they're staff) because the finite number of search users and choosing other search services over theirs!

    Sorry for the rant...Back to business.

    The stock promoters usually get paid in free trading stock and cash to create liquidity by introducing buying into the market for the penny stock. So they send a blast to the degenerate gamblers, ahem, penny stock traders, and generate huge buying and then you see a sharp volume increase followed by a sharp decline.

    Listen, at the end of the day, as with anything, you must do your homework. But if you do, it can pay off. I personally think that there are easier ways to make a few hundred bucks a day.
     
    • Thanks Thanks x 6
  16. ilikebh

    ilikebh Junior Member

    Joined:
    Jun 17, 2010
    Messages:
    145
    Likes Received:
    14
    If you have a legit penny stock company , there lots of money to be made . I personally went over to the companies business , talked to the owner , talked to some big stock trader and really digged in and finally found 2 penny stock companies I could trust in my country and I just buy and sell everyday make from xxx to x,xxx a day .
     
  17. mil0x

    mil0x Power Member

    Joined:
    May 27, 2008
    Messages:
    702
    Likes Received:
    643
    Occupation:
    ??
    Location:
    Somewhere on the net..
    Penny stocks are great. As long as you realize that 90% of them do fraud in some way and that whatever massive gains it has posted, it will go down eventually. And once it goes down, it goes DOWN. And probably will never get back up. So take your profits!! Someone once said: it is not hard at all to make a profit in stocks. It is much harder to TAKE that profit. Remember a profit is a profit and you can never time the exact top of a stock. Once you see people posting on iHub (msg board) 'to da moon', '$1' or whatever, after a stock has already run very high, it is time to look for the exit. Also never chase a penny stock. I know many get into a run fearing they'll miss the boat, but the time to buy is never in a run. I don't know if you followed the whole SAEI scam the last couple of weeks. Basically it went from .006 to .90+, while they were bringing out fake reports and fake buyout offers. The evidence was there. But again, people were led by their emotions and failed to recognise that this was in a fact a POS, because so many were buying at really high prices. Some have made a fortune because they saw through it, others lost a fortune. Trading now suspended by the SEC. This one is going to the grey market. You can basically write that down as a 100% loss.

    The stories like SAEI and Bre-X are essentially really why people went into penny stocks in the first place. Turn $600 into $60,000 or more within a few days. But they forget the most important rule: 90% of these companies are frauding in some way and the gains will not last. You can't afford to get greedy with these stocks. I love penny stocks BTW. You won't see AAPL shot up x,xxx% in one trading day :D Just see through them..

    One penny stock I'm really enthusiastic about is BFHJ. Could be one of those 10% real ones. Uplisting and reporting in the works. They're in the casino & hotel business. Lots of upside potential now that the bottom seems in.

    But remember to always do your own DD and never trust anyone on a msg board (not even me), always make up your own mind about a stock. Good luck! Could be a bumpy ride and also very rewarding if you do it right.
     
    • Thanks Thanks x 2
  18. dunk15us

    dunk15us Regular Member

    Joined:
    Sep 24, 2010
    Messages:
    227
    Likes Received:
    37
    You should definitely sell when a stock is high. While it may be counter-intuitive, as Benjamin Graham asserts, when a stock is priced highly it is at its most volatile time and should be sold. Once stocks begun to be bid up to astronomical prices it is only a short time until it comes crashing down. Similarly, the best time to buy stocks GENERALLY is in a bear market when issues are undervalued comparatively.
     
    • Thanks Thanks x 1
  19. WnrWnrChickenDinner

    WnrWnrChickenDinner BANNED BANNED

    Joined:
    Aug 21, 2010
    Messages:
    254
    Likes Received:
    274
    Thanks guys
     
  20. Mises

    Mises Junior Member

    Joined:
    Jan 11, 2010
    Messages:
    110
    Likes Received:
    51
    A lot of people have already said it, but I'll say it again- be very careful with penny stocks. Personally, I would rather look at etfs or mutual funds at this point, especially if you haven't been following individual stocks for long. Something you might want to consider is signing up for a free stock market practice site such as updown.com and buying some stocks you are interested in and seeing how they fair before you put real money into the market just to get a feel for how your picks do. The more research you do, the better you will likely fair.

    I am also with Leila in terms of long term market prospectives as I believe the current market run has been falsely propped up by the Fed and eventually it will come crashing down- and hard. Until then though you certainly have potential to make money- just stay diversified and be careful.

    edit: specifically I like commodities (specifically gold, oil, and possibly potash and silver) right now too and if the market does start to dip, they will likely retain their value the best.
     
    Last edited: Dec 26, 2010