Just wanted to get peoples thoughts on daytrading penny stocks IN ADDITION TO any other system one may have. I'm refering to days where there is huge volume like 30-40 Mill in the first couple hours. What I see every couple months is a penny stock opens up around 30-50%, levels off (does not start trending down) and then surges another 50% or so after lunch, there should not be a problem entering or exiting the trade due to the fact that these stocks end up trading 100-200 million shares by the end of the day. I just feel that it is too potentially lucrative to pass up. Sure there are penny stocks that open up big on big volume all the time, but the difference is that the volume dries up and they fizzle out through out the day. The key to the potential winners are the volume stays strong all day and there is a leveling off period from 10 till about 1 or 2, straigh line, not a crazy volitile looking chart. I'm always on the look out for this pattern. Examples from the past few months: RBAK, BCON, WAVX, GOAM.
I have scored on 2 of the above, BCON Bought @ .60 sold @ 1.14, held overnight. 90% gain. RBAK Bought @ .63 sold @ .97. 53 % gain.
Signs that the top is near...especially when people are pumping OTC pinksheet stocks on message boards like Yahoo.
there was a guy from pinksheets.com on CNBC last week saying that BB and Pink volume hasn't been this high since 1999..:eek:
I definitly don't advocat holding on to such security, they are strictly day trades, hope to catch the intraday momentum and dump the sucker.
i made my first trade on otc last week on AGIS. it made 0.015 open 0.40 high 0.35 close!!! so i watched it the next day and made 0.32 sold 0.65 +103% my record ever. I find it hard to get out i send an order to sell i was up 124% i get only 500 fill on 5000 so cancelled tryed 5 cents lower get no fill send 7 cents under and get a fill 1 minute after. I will never hold ON tht kind astock. What was funny was that it was my second trade of the day and i made +30% on the first one buy stem 2.30 sold 3 it goes 3.60 after. Uusally i never trade stocks under 5$ .
Well, I don't trade OTC BB stocks because of the reason you mention, it can be tough to get out. I stick to NASDAQ, like STEM. It sure is fun when you get those returns in one day isn't it.
The problem with pennies is that they can trap you very sudddenly. When they finally do go you tend to acept break-even, then sit aside and kick yourself whle they quadruple. In the past two months I missed out on $300K on Canadian penny golds after having taken $17K profit. It hurts. Hard to stay in with stocks you know are essentially worthless.