Penny Stocks Canada
Penny Stock Trading Strategy by Rob rens
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
About the Author
Canestsal of stockhideout.com Penny Stocks and Penny Stock Investing
Hodgins Auctioneers (TSX-V: HA) Canadian Penny Stock to Watch
|
|
Cuisinart MCP-12 MultiClad Pro Stainless Steel 12-Piece Cookware Set $610.00 The kitchens of France were the inspiration behind the elegant Cuisinart MultiClad Pro Stainless Cookware collection. Cuisinart has included everything you need in this spectacular 12-piece set to perfectly perform all the basic cooking tasks, large or small. From reheating a single portion of soup to preparing appetizers, entre?es and side dishes for the entire family, you?ll find every tool you … |
|
|
Cuisinart 77-412 Chef’s Classic Stainless Steel 4-Piece 12-Quart Pasta/Steamer Set $69.61 Boil the perfect pot of pasta–an all-around favorite that just got better! Cuisinarts Pasta/Steamer Set includes a 12-quart stockpot with tight fitting cover, convenient self-draining pasta insert and steamer basket for added versatility–use it to steam vegetables and shellfish. Set is constructed of gleaming 18/10 stainless steel designed for smart, healthy cooking. Features riveted Cool Grip H… |
|
|
Wall Street $14.98 Michael Douglas won an Oscar for perfectly embodying the Reagan-era credo that “greed is good.” As a Donald Trump-like Wall Street raider aptly named Gordon Gecko (for his reptilian ability to attack corporate targets and swallow them whole), Douglas found a role tailor-made to his skill in portraying heartless men who’ve sacrificed humanity to power. He’s a slick, seductive role model for the you… |
|
|
Junior Mining Investor: 14 Natural Resource Experts Show You How to Invest Profitably in Emerging Gold, Silver, Platinum, Base Metals, and Uranium Mining and Exploration Stocks $22.95 Junior Mining Investor brings together the combined wisdom of 14 mining-industry veterans to reveal how they make money speculating, trading and investing in junior mining and exploration stocks. These issues trade like no other sector and the potential to double or even triple your investment in 2-3 days means you have to be in the right stock at the precise time. Each succinct chapter presents t… |
|
|
Your pennies become dollars: Profitable speculation in Canadian mining stocks (A Penny Stock Press publication) … |
|
|
A to Z handbook for investing in penny mining stock … |
|
|
Treesje Penny Hobo – Shoulder Bag $263.99 Treesje Penny Hobo – Luggage |
|
|
PM Automatic Penny Coin Wrap $15.99 0% 1 1 Roll 1900 3.87″ Width x 8″ Diameter 51901 9.76 oz Premium red Kraft paper provides excellent tensile strength for durable and reliable coin wraps. Meets Federal Reserve/ABA standards. Use with all popular automatic coin wrap equipment. Approximately 1900 wraps per roll. Automatic Penny Coin Wrap Coin Wrap Kraft No PM PM Company, LLC Red www.pmcompany.com |
|
|
TOKYObay Penny Pursette – Clutch $27.2 TOKYObay-Slim body Puresette with Chain handle |
|
|
Canada Flag Belly Ring $7.99 Canada Flag Belly Ring Canada Belly Ring. Display it proudly and accessorize with this country flag belly ring. Specifications: 14 Gauge (1.6mm), 7/16″ (11mm), 316L Surgical Grade Stainless Steel, 5mm Ball |
|
|
Canada Flag Belt Buckle $14.99 Canada Flag Belt Buckle Canada Belt Buckle. Display it proudly and accessorize with this country flag belt buckle. Specifications: 2.75 Inch Diameter Full Color Flag Belt Buckle |
|
|
Royal Sovereign Dime Penny Coin Wrappers $10.99 0% 216 216 / Box Federal Reserve American Banking Association 54 Each of 4 Denominations – Pennies, Nickels, Dimes & Quarters Wrappers are color-coded to Federal Reserve and American Banking Association (ABA) standards for quarters, dimes, nickels and pennies. Preformed design with pre-crimping on one end allows easy filling. Wrapper is compatible with Royal Sovereign Two Row Digital Sorter, Four Row Digital Sorter, and the Sort’N Save One Row Manual Sorter. Assorted Coin Wrap Dime Penny Coin Wrappers FSW-216N Kraft No Pre-formed Royal Sovereign Royal Sovereign International www.royalsovereign.com |
|
|
Real Wood Silver A Penny for Your Thoughts Belt Buckle $15.99 Real Wood Silver A Penny for Your Thoughts Belt Buckle A penny for your thoughts, a dollar if you flash me buckle. Shock them with this funny belt buckle. Offensive buckles. Specifications: 3.5″ (w) x 2.25″ (h) Leather Snap Belts are sold separately. Please check the Belt Strap category for current selections. |
|
|
Canada Flag Clip on Earrings $8.99 Canada Flag Clip On Earrings Canada Flag earrings for non- pierced ears. Accessorize with these country flag clip earrings. Showoff the pride you have for your homeland or heritage with country flag jewelry. Specifications: Silver Plated Clip-On Earrings, 20mm Charm |
|
|
Canada Flag Earrings $8.99 Canada Flag Earrings Canada flag earrings for pierced ears. Accessorize with these country flag earrings. Showoff the pride you have for your homeland or heritage with country flag jewelry. Specifications: Stainless Steel Ear Wire, 20mm Charm Country Flag Earrings |
|
|
Wabags Penny Patchwork Tote – Navy $136 Wabags-Patchwork North South go with you everywhere shopping tote. |
|
|
Canada Flag Charm $106.95 Canada Flag Charm is approximately 1/2quot X 1/2quot If a charm is very long then the longer part will be 1/2quot inch 1/2quot is around the size of a Dime Charm includes a split ring so you can easily attach a charm bracelet., 1/2 inch x 1/2 inch Solid 14K Yellow Gold |
|
|
CANADA PASSPORT $32.5 , Sterling Silver, |
|
|
Custom Handcrafted Round Horn PENNY Chinese Name Belly Ring $15.99 Custom Handcrafted Round Horn PENNY Chinese Name Belly Ring Personalized Chinese Name Belly Ring. Display your Name in Chinese Symbols on this organic black horn belly ring. This personalized Chinese Character Jewelry is part of our Handcrafted Artisan Jewelry Line. Specifications: 14 Gauge (1.6mm), 7/16″ (11mm), 316L Surgical Grade Stainless Steel with Anodized Titanium, 5mm and 4mm balls, .925 Sterling Silver, Organic Black Horn, Genuine Swarovski® Faux Pearl (Swarovski is a registered trademark of Swarovski AG), Handmade in the USA Handcrafted Personalized Belly Ring Body Jewelry |
