Hi guys, what are some good websites to buy and trade penny stocks on? My brother used to do it and earned over 10k with only a 500.00 investment.
In penny stocks that would be called a 20 bagger...you made 20x you money. It's more common for 5 baggers though....theres probably one good 5 bagger a week. You only need two 5 baggers to make the same return as a 20 baggers.
First...pick a broker like scottrade. Next you need a message board to talk to penny daytraders with. The best and most poupular one is Investors Hub. The most poupular board over there is BB's Stock Haven. Heres the link.http://investorshub.advfn.com/boards/board.aspx?board_id=2199
You have to learn all the penny stock lingo that is thrown around, and realize that everyone B.S.'s alotto boost a stock.
Next you need a Source for your level 2 quotes, live charts, and live streamng Penny stock news. Penny stocks are only quick trades and are not investments. They are runners off news and Hype and thats it.....once they hit the top a few days later or sometimes even just hours.....it goes back down to the original price. The most poupular data source for penny stocks is equity feed.http://equityfeed.com/products.html
I've been using that isnce it was called micro cap trader
Next you need to learn how to read stock charts with technical analysis. The best charting site is stockcharts.com. Once you learn to read charts...trading stocks like apple, google and other big board stocks....its like clock work...theres a recession every 3 years no matter what...its the busines cycle...for get about what you read or hear on the news...its a big scheme. I used to trade penny stocks cause the percentage returns were bigger, but you could only invest a few hundred to a couple thousand at a time....cause there was no volitility or money in penny stocks. Once I learn how to read charts..its easier and less stressfull to to treade listed stocks with good compnaies. Im not talking daytrading, but swing or posiition trading....for several weeks to a year or so. I use weekly charts. I'll post a link for tmy favorite silver sotck, but you can plug in any stock symbol at the top and press update. You'll notice that every stock mad ethe bottom at the same time during the recession....its that easy....Plug in other symbols at the top like AAPL, BIDU, TNA, CF, F, .....ITS EASY TO SEE WHY THE MEDIA was puting so much fear in the news...talking about a nother great depression....they were able to buy ford for 1 dollar and sellit for 15 months later.....and there is a recession every 3 yars or so....just some are worse then others, but the same trick works.http://stockcharts.com/h-sc/ui?s=SLW&p=W&yr=3&mn=0&dy=0&id=p27397298846
So yeh....just put in the symbols like f, bidu, slw, aapl, goog.....and see how they alll hit the bottom at the same time as each other and the major indices.