Oh where to begin. I've been really good about getting up before market open this week. It's a struggle for a lifelong night owl.
I discovered that E-trade Pro has a "Strategy Scanner" so I have been trying to utilize that. It will tell you stocks that (in your price range) are big percent gainers from close, have unusual volume etc..there are a lot of options to choose from.
I bought SAKL earlier this week after SECFilings.com published an article about it. I had my eye on it for a while. It seems like an interesting company with their focus on events for "millennials", (and who can ignore the name Sack Lunch Productions?!"). I bought 3300 shares at $.074. Ive watched it the last few days, its gotten as high as .081 (when I should have sold and just broken even after commissions). Trading with a smaller account and trading cheap stocks is getting the better of me.
Its basically impossible to not lose on a trade, even just earning back my commissions means earning 10-20% per trade which is difficult for anyone. I think I am out of the trading game for a bit and I am going to devote my time to learning. I want to get this so badly.
When I do get back in I think I will focus on higher priced stocks $5-$10 range. I think the chart patterns will be easier to see in stocks that aren't so volatile and random...At least thats what i'm hoping. I can get into some swing trades 2 days - 2 weeks-ish with larger position. Also I only put $1000 in my etrade account when I opened it and they dont let you put any more money in for 2 months...kinda annoying..probably for the best.
So, to kick start my learning I went to Barnes & Noble yesterday. Ive been meaning to buy Market Wizards by Jack Schwager, so I got that and then perused the Investing section. I also bought Swing Trading for Dummies (I've heard good things) and Traders at Work by Tim Bourquin and Nicholas Mango; the first paragraph on the back cover basically summed up where I am right now, "Shortly after most novice traders discover how trading works and begin to realize that they have the potential to make unlimited amounts of money in the financial markets, they start dreaming the near-impossible dream...But then...they watch the markets lurch in wildly unpredictable ways, lose their shirts in a few live trades, and freeze in their tracks, wondering if they will ever be able to consistently trade in a manner that can even loosely be defined as "profitable."' Yep. That's where I'm at (but I haven't lost my shirt yet).
I'm also going to start watching all of Warrior Trading's videos on youtube as recommended by Airplane Jane. Ive watched a lot of Tim Sykes and some of Tri Force traders. I am a Super Pro member following Super Trader. He has a lot of videos you can watch once you subscribe but honestly they are just him going over his watchlist for the day and saying where his stops are. They arent really helpful...I started watching them from the beginning and there were more helpful ones when he started making them so I have started from his first video and im working my way to the most recent.
I really don't know what strategies to follow at this point or what stocks to focus on. If anyone has any suggestions I would love to hear them.
Stocks I have right now (I'm not proud of these)
I still have 100,000 shares of ISBG..so annoyed about this. Just keeping them bc the downside (all i have left to lose) is $20 so i might as well keep it. Annoyed they announced they would buy back shares and then never did. WTF.
I have 50,000 shares of ELED and honestly I dont remember why I bought this...or why I still have it.
I have 200 shares of GEVO..Still seems like a good company going in a good direction but no news..no action.
3300 shares of SAKL. Im selling at break even as soon as it gets back to .081. After two red days i think we are due for a green day.
Key:Remember, the lower pricd stocks (less than $10) and low float need a catalyst to get moving; earnings, contract winner, investor buying, etc. These penny stocks can have short life spans of 10 minutes or a few hours and that's it. Some can run longer and do trend but those are different plays. I am adding a new page of these trending stocks to my website soon along with...
a reformatted TOS scanning page so everything is on one page. www.thepennystockquest.com Study stocks that had catalysts, the float, the volume, and the chart. There is nothing wrong with reading those books...
but know that those can be longer term trades and I'm not sure how many of those focus on stocks that are .05 or .33 cents a share. Higher priced stocks can have better momentum patterns so it's also a matter of what time-frame you want or can trade from. Best of luck.
Thanks for the input Palmer. I think I will be more of a swing trader in the future holding stocks for a couple days to months but to keep my head in the game during the day and stay interested I will day trade a bit too when the right situations present themselves!
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