hahahaha so what the hell do you think is legit if you think all of the above isnt? Man how does this website harbor so many unrealistic people and unrealistic thoughts like yours
I think thats true because most traders here are sort of "older" in their trading, in the sense of they been trading a while before fast fly technology. Or so it seems
Mostly seniors, grannies, college kids, housewives or retail with a few thousand to play with buy these stocks. A lot of these stocks listing is for money laundering if a large investors owns it. similiar to bitcoin trading .it's just transfer of money from one guy to some market maker. majority of these companies become worthless and have no viable business or profits. mostly BS companies
%% GOOD POINTS but bitcon is not really comparable to penny stocks>some go past five bucks>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
I think different traders will trade and teach different types of “penny” stocks. Right now it seems common for them to be stocks under $5, or generally micro cap stocks. And still traded on Nasdaq (vs OTC). Though some traders may specialize specifically in stocks under $1. I’m finding wide range of those stocks to behave similarly, except for margin. Shorting stocks under $2.50 requires $2.50 per share margin, so that’s the minimum. (trading long is usually 1:1 in terms of leverage)
You’ve made some great points, but let’s also point out that trading is not investing, so trading penny (micro cap) stocks is one of not-so-many things to trade. It’s all about exploitation of the issues you’ve pointed out. When trading large caps, options and futures, traders also look to exploit whatever there is to exploit. Once everything is “nice” and logical then there may be nothing to trade.
Do a search for the old thread My Longshot is, started by yours truly. Penny stocks are not what they used to be. Much more difficult to run the scams today. Back in the wild west days of internet message boards, late nineties, early 2000's the pump and dump was easier to pull off. You just had to know the PR game. My all time favorite trade, ECNC. Total scam company but the money made was real. Hell, I could go down a list of at least a dozen I was in and out of, 1999, early 2000. Now that was a f'n market. Wild west baby.
There is still a lot of that stuff going on, but works differently. I’m following a few penny stock traders on Twitter and I’m actually amazed at how some of them are still able to make shitload of money. One guy started $1K to $1M challenge 6 months ago and now is upgrading to $5M because he is nearing $1M. I have no idea how he does this, but I’m also not seeing any signs of fraud. One common thing I’m noticing though, is that those top penny stock traders have a lot of followers on Twitter, StockTwits and private chatrooms (some free), and the stocks that go up are those that have multiple mentions from multiple traders at around the same time. I don’t see signs of collusion either, but I guess they all start seeing some gaps , momentum and volume around the same time (and sometimes dubious press releases), which may not be sufficient to make successful trades on their own, but once they’re tweeted out, they create the “pump” effect similar to penny stock newsletters and message boards years ago.
I would imagine the dump happens faster these days. Been quite some time since I have played in that arena. Old man lost his nerve for that gambling market, but I used to have a nose for it. I will say this, I made more money trading penny stocks than I ever made in the so called "real market". More luck than skill for sure, but for a time I was one lucky SOB. Miss those days, alot. Good hunting