trader198
Registered: Mar 2010
Posts: 1217 |
09-21-12 11:36 PM
I find penny stocks very attractive.
it has one feature: like option kind of cheap , i.e., with high leverage but does not need margin.
in another way it is far better than option, most time if you look carefully, they are highly liquid, not like option, even you see a trade, but low volume easily scares you away, this means you can easily use limit price to buy while in option, it is hard, plus cancellation fee, that is a big minus in option.
another thing is: you can trade it in a daily chart, that lets you easily study the chart pattern, get in at what your desirable price level. but to options, though everyday lots of multiple folds gain trades, but it is fast and evasilve, if hesitate, gain easily become loss, like today in KBH, I bought 14 call at 0.13, afraid to buy 15 0.01 call, if I bought 15, that produces 50~60 folds, but if you did not pay attention, easily wiped out at all if KBH dips back under 15.
another good feature is: there is no expiration date! belly up thing to pink sheet (you can buy 10% of account for each position) happens rarely, most penny just hangs around long long time.
also sone penny trends so well, like CLSN, PPHM, ZLC, SVNT...
based on this observation, I bought some EXM at 0.54, also plan to buy some CWTR.
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