STOCK MARKET TRADING

Anonymous (@) 8 years, 1 month ago

Anyone with any experience prepared to give one piece of honest advice regarding “penny stocks”?

Fairly irrelevant to the agenda of this website and I do apologise but am desperate from some advice from what I consider a very impartial honest community.

Thanks!!

October 24, 2013 at 2:40 pm
Psychonaut (133) (@psychonaut) 8 years, 1 month ago ago

@patrickparish,
I made an initial investment of $1000. After a couple months of trading I got it up to $4000. A week later i lost 98% of it. I still have the 2% but it has done absolutely nothing over the past two years. In fact, I had completely forgot about it until this thread popped up.

My only piece of advice, don’t invest any money you are not prepared to lose. Penny stocks are stupidly unpredictable.

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yoinkie (1,498)C (@yoinkie) 8 years, 1 month ago ago

@patrickparish, any specific questions? I’ve been trading for the better part of a year. Feel free to ask any questions, or shoot me over a pm.

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JonH (1,139)C (@IJesusChrist) 8 years, 1 month ago ago

Solar stocks go up and down.
Buy low
Sell high, thats what I used to do. I made some money, not alot, but eventually just ran out of funds because my rent is doubled.

Fear is the number 1 reason people lose money.

If you invest in a company that is large, but still volatile (like an energy company) you need to know if you buy it low, it will go high. Don’t freak if you’ve suddenly dipped 30%. Stay firm. These companies don’t just vanish.

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james (20) (@jamesjohnson) 8 years, 1 month ago ago

Dumb investors buy at the top and sell at the bottom.

Smart money buys at the bottom and either holds or sells at the top.

Find out where there are inefficiencies in the market – ie the price of the stock differs significantly from the intrinsic value of the stock. That is where there is profit to be made.

You can make money buying an overpriced stock as long as there is another idiot who is willing to buy it for a higher price. Look at Tesla right now – the intrinsic value of the stock based on earnings is something like $25 yet it is valued at $175. Some people have made a pretty penny on it, but some idiot investors are going to get in on the tail end when this thing comes crashing down past $50. It’s like the Dutch Tulip bubble – it will burst, the only question is when.

Penny stocks are a fools errand. It’s just a gamble so don’t fuck with them. There’s a reason why they aren’t worth shit.

It’s obviously best to buy good companies after a market correction as they will be significantly cheaper.

Read as much Warren Buffet as you can and understand his ideas of moats and margins of safety

@patrickparish,

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james (20) (@jamesjohnson) 8 years, 1 month ago ago

@patrickparish, Apologize for going off on a tangent and giving you info you didn’t ask for. I think I just combined the title of the thread into your question in my mind or something haha.

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Anonymous (8) (@) 8 years, 1 month ago ago

@yoinkie, Hi! Thanks for the offer of advice!

I have made it as far as this website(http://online-trading.kiplinger.com/) in trying to understand the process of trading penny stocks.

Prior to this page i have learnt:

Penny stocks are worth under $5 per stock, this is what defines them as a penny stock?
They are traded “commission free”
Their value fluctuates more frequently than larger valued stocks
There are very mixed opinions on their recommend-ability!

The results of brokers displayed on this page all seem to charge a per trade fee, which leads me to the conclusion these are not the kind of brokers/platforms designed for trading penny stocks.

Can you clarify what I believe to have understood up to this point?

Which brokers have you used in the past?

Can you name as many as you are aware of so that I can do a bit of research on them?!

Really appreciate any advice you can give.

Thank you!!

Patrick

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Manimal (2,998) (@manimal) 8 years, 1 month ago ago

@patrickparish, The #1 piece of stock trading advice is… DON’T listen too much to stock trading advice.
First of all, it’s rarely more than speculations.
Then there’s also the issue with people that profit off your loss and therefore give false advice. Nobody makes much money by genuinely helping people with this stuff, it’s easier to make money being a bellend and so that’s the path most people take.

But the general basic advice holds true. From there on, you’re on your own, it’s trial and error.

Set up a budget, a ceiling to stop you from losing too much money if you make bad investments. Keep it on a separate account if you can.

And always remember that failure is in the eye of the beholder. A mistake, a bad investment… is really just a lesson in my opinion. A lesson that is sometimes expensive, but then again it could be worth it.

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