Bob Knights Liver said:
I am interested in the process for penny stocks since I have very little experience in this realm. Questions for this thread:
How do you select pennies to follow? Is this primarily based on mentions in social media or do you scan for specific qualities?
Are there particular DD steps you generally go through before investing? Is you decision typically based on financial or technical signals? Do you look for ideas with growth upside and ignore the rest?
Do you have a set percentage of your portfolio it a set initial investment amount that you generally get in for most investments?
After you have invested do you have a certain profit point where you look to return some of your initial capital?
Volume is a leading indicator, u want a stock with mucho daily volume movement.
Very few penny stocks will ever become a long time winner. Exceptions to all rules but there is a reason these stocks trade for pennies,
If a stock has 2 billion shares issued and is trading for a penny, chances are it will be nothing more than that.
Once you hear about the pumping of a stock, get into it but dump it once you hit a reasonable return on your money. Mine is 20%
Get out and then watch it for a few days. U should see a pattern until it finally goes flat and the pumpers move on.
If u can get on the ground floor of a pump and dump, u can literally make a fortune on the dump.
Rule 1
Never fall n love with a penny stock.