Penny Stock

[Guest]

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Have a question on a stock I've been watching. The name of it is NNCO.OB

It's a piece of crap company with no money, no capital, no equipment or anything. It usually just sits there trading at .0008 cents per share. LOL, wait there's more.

Every once in awhile, like once a week or so, it'll jump up to .0012 per share then usually go back down by the end of the day. A 50% increase!! This stock's average volume is 10,000,000 also!!!

Now my question is, if I bought at .0008 and sold it at .0012 that would be a 50% profit in one day, is that what all these "other" people are doing and this legal? Seems like somehow the price is being inflated for a quick profit.

I did buy 150000 shares once for like $120 at .0008 per share and sold it at .0010 per share a few days later. Didn't make much on it after fees, but I just wanted to see if would work and it did.

Anybody with familiar with this "strategy"?

 

[azanon]

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I played around with penny stocks once. The one thing that gets you is the spread between the bid and the ask price, so when you buy you're in essense in the hole from the getgo. IMHO, its just a form of gambling, but if one is going to gamble, quite honestly your odds are probably better than what you'd get at a casino.

As for a real solution to make money, my advise is to avoid it. More people lose than not. I can tell you that if you're watching it by the hour, its pretty crushing to see you lose hundreds within an hr or two. That happened to me just a couple of times, and then i went looking for my fun elsewhere.

 

[Guest]

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Can't that be avoided with limits and stop limits?

 

[azanon]

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well yeah i used limits, but on penny stocks as small as you're talking, just one price update can result in hundreds dollars difference, if you bought a few thousand dollars worth. I played around with em about a year, and consider myself lucky to have broken roughly even. I had one that i made a couple thousand in 1 week off just a few thousand principle.

 

[Mike]

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I'd rather play blackjack in a casino for roughly 50/50 odds than do this.

Stay away. :shock:

 

[Guest]

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Milk,

I trade penny stocks all the time in my mornings. The good thing about living in HI is the market opens at 0330 here.

This is my main source of info:

http://pennystocks.net/

They are not something you can buy and hold. You have to watch and have stop orders (both up and down).

I have been playing djtc.ob androde50,000 shares from .22to .55 and looking for another entry point to dump the shares around the end of the show. You need to do tons of research on these those.

Another thing to look at is futures. Have taken profits on OJ futures Friday.I spend more time on this board then watching the TSP account (funny how that works).

Good luck!

MT

 

[ou81200]

imported post

Milk_man---

I've been playing arond with pennies for about a year now and I've come to one conclusion. Your better off with a crystal ball.

My advise is not to do it as an investment strategy. I do it because it's fun. The first rule of thumb is never use more than beer money in the penny market.

If you decide to play it, there are a number of resourses you have. Chat boards are a resourse. ie. Raging Bull. They are also entertaining. But don't believe everything you read on it. Yahoo is another one.

Make sure you have an on-line brokerage that will let you buy at least 100,000 shares at a time. That's the only way you can make (or lose) any money. Lowtrades.com is one I use. Five bucks a trade. But don't expect much help from them as far as research.

You might try paper trading for awhile before you decide to use your beer money in your venture. I hope this helps.

 

[Guest]

imported post

ou81200 wrote:

Milk_man---

I've been playing arond with pennies for about a year now and I've come to one conclusion. Your better off with a crystal ball.

My advise is not to do it as an investment strategy. I do it because it's fun. The first rule of thumb is never use more than beer money in the penny market.

If you decide to play it, there are a number of resourses you have. Chat boards are a resourse. ie. Raging Bull. They are also entertaining. But don't believe everything you read on it. Yahoo is another one.

Make sure you have an on-line brokerage that will let you buy at least 100,000 shares at a time. That's the only way you can make (or lose) any money. Lowtrades.com is one I use. Five bucks a trade. But don't expect much help from them as far as research.

You might try paper trading for awhile before you decide to use your beer money in your venture. I hope this helps

To heck with that!!! Not taking my beer money................