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Penny stocks. What's your opinion?

Discussion in 'BlackHat Lounge' started by spasovski, Mar 25, 2015.

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  1. spasovski

    spasovski Regular Member

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    There are plenty of threads discussing this subject but it would be nice if we start a fresh input and get the opinions of experienced stock traders and people making a living out of this. Certainly not looking to hear get rich quick methods or similar. We are talking about continuous growth and diversification which will eventually result in more serious investments towards bigger and promising companies.

    Do you hold investments in penny stocks?
    What service do you prefer?
    What are your expectations?
    Long therm or short therm is the way to go?
    Is it worth jumping in this train or you think there are better things to invest into?

    I run a small business that's expanding and brings me more than decent money but nothing passive, I'm on foot 8 hours a day Monday trough Saturday. I've been thinking and reading about stocks for a while now but still indecisive whether I should touch or leave.
     
  2. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Jr. VIP

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    Do you personally know any successful traders?
     
  3. wizard04

    wizard04 Elite Member

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    Someone have watched Wolf of Wall Street...OP give it a week it will pass.
     
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  4. jgeeked

    jgeeked Regular Member

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    I know a guy who's making BANK with penny stocks.....

    ...not trading them, but positioning himself as a "authority figure" then selling his "coaching" on how to become the next penny stock whiz.

    And when I say "coaching" I mean he has a group of students, he says buy X stock at Y price, then sell at Z price.

    Easy money.
     
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  5. swekredit

    swekredit Newbie

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    Pennystocks will not make you rich. In fact it will make you broke because the stocks are so manipulated. But if you know what you are doing you can make anywhere from 1k to 3k On every trade. But you need to have 50k or 100k invested.

    stay away from it, trading penny stocks is a scammers best game.
     
  6. Capo Dei Capi

    Capo Dei Capi BANNED BANNED

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    Some of the newsletters can get $28,000 for each of the stocks they promote, other times they get compensated with shares for promoting a stock.
     
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  7. jgeeked

    jgeeked Regular Member

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    This. I've been "lucky" to witness this happen live.

    They had a pretty large (not huge) list of people who purchased coaching and ebooks.

    They buy the stock first, then send out a mailing a few days later with their latest "pick" which is making crazy gains.

    So long as you are one of the first, you'll profit - but you need to understand when the price is being manipulated. It's not a long term play. Get in, get out.

    The funny thing is, because people are seeing short term gains, their testimonials keep getting new people into the coaching.

    Kinda like one big pyramid scheme lol.
     
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  8. PandaDomo

    PandaDomo Senior Member

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    Penny stocks are good money if you're careful, but the downside is that you need a pretty large capital.

    I made the mistake of trying with only $800 or so, trading fees killed nearly all of my gains.
     
  9. praetserge

    praetserge Power Member

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    Yeah, ME... It's just I fail too often so he didn't put my name in capital letters there.
     
  10. Capo Dei Capi

    Capo Dei Capi BANNED BANNED

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    The bare minimum to actually make decent money if you can get in and out fast is probably around $15,000, spread out in $5,000 for each day(since when you sell on Monday the money becomes available a few days later etc. so you don't need to set out an amount for each day before you start).
     
  11. Bartholomew

    Bartholomew Regular Member

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    There's a well known "pump and dump" fraud exists, similar to this. Buy cheap stocks, inflate its price with mass spam campaign (like millions and millions of spam emails) telling people the stocks price is going to raise soon, and as soon as people inflate it well enough - dump your stocks. People got in jail for that in US - http://en.wikipedia.org/wiki/Alan_Ralsky for example.
     
  12. buddieluv

    buddieluv Junior Member

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    There's no such thing as "Buy and Hold" when it comes to penny stocks.. they're called penny stocks for a reason.
    The volatility for this type of stock is only suitable to those who understand "pump and dump" dynamics.

    Another issue is, if you're trading within the USA.. you're restricted by the SEC to only 3 trades a day if your investment account for trading is under $25K..
    This is called the "Pattern Day Trader" rule.

    Best strategy for trading penny stocks? Scout the internet for press releases promoting penny stock companies.. these press releases are "paid for" and intended to "inflate" the price of penny stocks in the short term.

    Because markets move on emotion, when speculative and uninformed investors start seeing upward movement in a penny stock, they have "no choice" but to jump in, thus inflating that stock's price based on false information in the press releases.. eventually the market has to correct itself, which can happen in hours, or mere days, never weeks.

    So there's no such thing as "buy and hold" in penny stocks. you simply buy and short the stock.. 3 days max.. if you're lucky, perhaps a week.. never seen (I stand corrected) a penny stock that managed to rise and maintain position for over a week..

    Good luck..
     
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  13. Capo Dei Capi

    Capo Dei Capi BANNED BANNED

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    Its only for margain accounts, for cash accounts you can trade as many as you want per day.
     
    Last edited: Sep 7, 2015
  14. Snazzy J

    Snazzy J Newbie

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    I am looking to get into this. I am not looking to get rich quick, i am looking to train, learn, make a little bit of money, then move!
     
  15. Jason Bradbury

    Jason Bradbury Power Member

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    Illuminati confirmed
     
  16. t0mmy

    t0mmy Jr. Executive VIP Jr. VIP

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    Thread closed to prevent further necrobumps. Please look at the date of the last post before commenting!
     
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