Pennystockresources

Times To Trade Penny Stocks
Over the years you will hear a lot of clichés about the market andone of them says “the open is for amateurs and the the close is for Pro’s”. Well there is some truth to that. For the most part, the first 20 minutes of the trading day is full of wild swings where
market makers are filling overnight market orders (where they want to fill them by the way!) while people who are looking at a “gap” opening are trying to get out. So it is indeed an interesting tug of war between people trying to get in and others trying to get their profits out. But in general terms the craziness subsides somewhere before 10:30 am Eastern and then stocks move a bit more realistically. But we often see other things happen that are really interesting and you can almost base them on the clock. Once we get past the 10:30 area, we often see some wild movements right around the 1pm area, and then we also see some volatility at the 3pm area.

Did you ever wonder what was going on at those times? Well as “deep”
as you can make it seem, the real answer is that the times coincide with lunch! Don’t laugh yet,it’s for real. For instance

let’s say you work a trading desk at the NYSE. You go out for lunch at about noon and over a roast beef sandwich and a soda, you are talking to “fellow” traders about the overall direction of the day. Is it possible that when you come back to work at 1, you may want to buy some stock if the feeling was good? Is it possible that the lunch period brought a bunch of nervous traders together and they scared you a bit? is it possible you may want to sell some stock when you hit the floor again? Yes, it is and although you may be thinking “it can’t be that easy” it certainly is. Watch the market moves at the 1pm time slot and you will indeed see some increased volatility.

The same thing happens at about 2:45 to 3:00 pm. Why? Guess when the west coast traders are going to lunch out there? Right! With a 3 hour time delay, office workers that are just hitting lunch time are flooding to their telephones and computers to make some trades.
So sure enough watch the “tape” at that time slot and you will see an increase in activity. As much as television shows everyone trading every second of every day, the fact is that lunch time is the time of the day when most people who want to “do something” actually get the time to do it.

The last half hour of the trading day is indeed where the market
pro’s are doing their best work. Funds that want to buy generally do it during that time slot and last minute buy/sell imbalances have to get straightened out. If the order flow is positive, we can often see some huge moves in that last 30 minutes. (Likewise if the day has been lousy and they are nervous, they can really accelerate the selling). Remember you can often take your queues about the next day’s action from the close of the previous day. If we rally hard into the close, it’s probable that we will open strong the next morning. If we tank in the last half hour, you can almost bet the next morning will either gap down, or it will rise for a few minutes and then fall apart. Quite a few traders make their “day trades” based on the last 20 minutes. If we are running into the close, it is a pretty good bet the the leaders will gap up a bit in the morning and you can sell into that gap with a nice little profit.

For most of you who aren’t hard core day traders, it would be best
to buy your stocks in the “quiet periods” of the day. For instance if you want to buy XYZ, take a look at it during the 10:30 to 11:30 time slot. If its doing well at that time, chances are good it will continue to do so for the day. Likewise, if it is looking good after the 1 PM shake, that too is probably a decent time to get involved. By watching the “moves” the market makes during its trading session, you can often get a much better idea of where things are going by seeing “who’s doing what” after the lunch hours! Watch this phenomenon for a few days and see what you think.

Mouser57 of stockhideout.com Penny Stock Investing

Mouser57 of stockhideout.com Penny Stocks

Penny Stock Trading Strategy
Have had a few questions on how I trade. I’ll do a run through to the best of my ability on what I do, and how I do it. This may benefit some of the newer traders. Sorry, no visuals on this one!

First off, my most profitable stocks are swing trades. I guess this makes me a swing trader. This means that I mainly trade in 1 - 5 day patterns.

Why swing trade?

(i) Holding a stock long is a good way to make profits, however it doesn’t maximize your profits. By following the trend, you can capitalize on all market movement.
(ii) Daytrading only works if you have the capital to move a stock, or are quick enough to lock in small profits during movement. Unless you have honed your trading skills, daytrading is often a quick way to relieve yourself of your savings.

Stock Selection

Here are the things I look for when picking a stock:

1) Volume. Is there enough volume that you can get in and out if you need to? Make sure that the daily volume is at least 20x that of your position.
2) Float. Anything under 50 million shares is a sign that the company is on the right track.
3) Filings. Does the company have a history of reverse splits? Go with your gut on this - if it doesn’t feel right, than stay away.
4) Charts. If you want to trade successfully, you HAVE to understand charts. Stockcharts.com has tutorials on understanding trading patterns and indicators. You really can’t make money unless you understand the tools that make you money. If you need help with the charts, ask some of the pros on this site.
5) Level II. Take a look at the level II. Is there a lot of resistance? That is usually a bad sign.
6) I am never rushed into buying a stock. Usually when you hear about a stock in the chat room, it is too late. Research using the points above … there are plenty of trains leaving the station and lots of opportunity to make money.
7) Every stock on the otcbb/pink sheets that is under 0.05 is junk. You will not find the next walmart or google in this group of stocks. Traders call this part of the market the ‘wild west’ - it is full of pumpers, scammers, manipulators, and daytraders. It is a good place to get eaten alive, because there are so many variables working against you. Market makers naked short sell these stocks, they are often on the verge of bankruptcy, shells are created to funnel monies, etc etc.
If you are new to the game, stay away from otcbb/pink sheet stocks with headquarters or owners in Canada, Las Vegas, San Diego, New Orleans, Florida, or Mexico. An oil company headquarted in Las Vegas? Yeah, right. These stocks are junk, imho.

Don’t diversify

If you only have $2000.00 to trade with, don’t diversify it. Buy 2 stocks with good potential and keep a close eye on them. Become an expert on your stocks and dump them if they do not perform.

Don’t fool yourself

Plan an entry and exit strategy before you trade. Pick your entry and stick with it, don’t let your emotions take over because that is when you make a mistake. Let the stock come to you, if it doesn’t … forget about it. Rushed money is lost money.

Stick with your exit strategy. When the stock gets to your exit strategy, sell. Don’t fool yourself into thinking that “it’s going to a buck”. Because it isn’t. You have to sell to make money

Don’t go against the market. You can’t change the direction of the indicators, so just go with the flow. Otherwise, it is like trying to bail out a sinking ship with a teacup.

Don’t hold a dog. Every 50% loss started as a 5% loss.

Don’t try and make up the previous loss on the next trade.

Mantra: “Bulls and Bears make money, pigs get slaughtered.” aka. Don’t be too greedy.

My entrance and exit strategy

I buy a stock just above the support levels. If the stock is not performing, I can dump it into the support. I do not let my losses exceed 10%

I sell a stock after gaining 11%. This allows for 30% gains every week, which really is pretty good. The only time I break this rule is if a stock is moving with a lot of momentum and strength. This being the case, sell when you see momentum slowing. Often, this will come as a “pop”. A pop comes when a stock runs itself into a big bid/ask gap. You have to be on top of the action to see this, but this is a big sell sign. The top comes at the pop.
Buy low

Buy when things are looking most dismal. Natural gas and oil stocks getting pounded? Are the naysayers forecasting $30 oil? Huge oversupplies of nat. gas? Sounds like a time to buy.

Look at the charts

Take a look at weekly charts on stockcharts.com and get a feel for cycles that a stock may go through.

Okay, so I hope this helps a little. I will keep posting my picks for everyone. If you have any questions or concerns, about anything, ask them here! no question is too ridiculous. It is better to know, than trade blind

Canestsal of stockhideout.com Hot Penny Stocks and Penny Stock Picks

Canestsal of stockhideout.com Penny Stocks and Penny Stock Investing