Penny Stocks how can I start?

[Mauricio]

Hi guys, i'm looking for a good online penny stock broker preferably for starters, i only have expierence with normal stocks, where the comissions are kind of expensive for what I am starting with. also i would like to know about how do the commissions work on penny stocks. And what do you guys think of Timothy Sykes and his advice, he has a youtube channel with a lot of free, useful and long videos, and are there other traders like timothy sykes that have only videos and that had been overtime succesful?

 

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[ArthurDayne]

I think you're kidding yourself if you think penny stocks are a way to create wealth.

Put another way - if someone became rich by betting red in roulette, does their wealth really represent a model worth following?

As for brokers, who do you use? Commissions for common stocks in the US are very low, especially if you use someone like interactive brokers.

 

[Unknown]

 

[Mauricio]

I think you're kidding yourself if you think penny stocks are a way to create wealth.

Put another way - if someone became rich by betting red in roulette, does their wealth really represent a model worth following?

As for brokers, who do you use? Commissions for common stocks in the US are very low, especially if you use someone like interactive brokers.

well thanks i guess, you are problably right, also i noticed you can´t short pennie stocks unless you got like 10k to put in the accoun and that pretty much ruins my strategy so thank you, i think im going to keep with the usual stocks .

 

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[ArthurDayne]

well thanks i guess, you are problably right, also i noticed you can´t short pennie stocks unless you got like 10k to put in the accoun and that pretty much ruins my strategy so thank you, i think im going to keep with the usual stocks .

I know it's a bit of a buzzkill but I probably saved you a nice chunk of money.

 

[GuestUser113]

 

[timmy]

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[SJVC]

Hey man,

Tim seems to have a lot of controversy surrounding him and while he says he makes a load of money trading stocks he makes a whole lot more telling people he can make them rich. A lot of the stocks he trades are very illiquid and volatile which doesn't seem to be a good long term plan for wealth.

You read the Naked Trader? Technically some of the stocks he trades are penny stocks but he comes across as a lot less scammy and does admit that it takes a lot of work to make money from trading stocks, he posts all his trades online which is interesting: http://nakedtrader.co.uk/trades.htm

 

[TheBaker]

My opinion of stocks is that they can make you rich yes but think about the time that has to be taken to learn the market, learn the opportunities and learn from failures. Personally I rather use that time to build a business which can create value and income.

I do invest in stocks but I'm not full time into it. It's just another asset I have on the side. If you do plan on doing it full time plan it out. Read books on the subject. See what other traders are doing mimic if necessary. Eventually you'll get the hang of it.

Do watch out for pumps and dumps these are stocks that are bought in huge quantity for pennies on the dollar and then being sold after "promoted".

 

[Unknown]

If you're really interested in stocks I'd recommend www.joshuakennon.com, but you're not going to find any info about penny stocks.

 

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[Guest3722A]

Hi guys, i'm looking for a good online penny stock broker preferably for starters, i only have expierence with normal stocks, where the comissions are kind of expensive for what I am starting with. also i would like to know about how do the commissions work on penny stocks. And what do you guys think of Timothy Sykes and his advice, he has a youtube channel with a lot of free, useful and long videos, and are there other traders like timothy sykes that have only videos and that had been overtime succesful?

Why stocks when you could daytrade currencies or micro-futures 23/6? Long or short.

 

[Deleted21704]

I've been trading one and off for the past 7 years, in school and after graduation: stocks, ETFs, options, and futures. As recently as last year, I would fire up Trader Workstation and paper-trade S&P futures, hoping to soon trade with real cash once I had 'proven' myself.

Then I read Fooled by Randomness by Nassim Taleb and had an epiphany.

Aside from the 'not ever being able to predict the future' aspect, think about the risk: no matter what or how you trade, you're risking everything in order to make a little every time you make a trade.

That's not a smart way to handle money. In TMF terms, it's even worse than sidewalk, because instead of spending money on things of very little value, you're gambling it as if it has no value.

 

[Rawr]

stay away... i used to daytrade pennies.

go think of something you can do/ create that helps people and do that.

 

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[Ashten]

The only way you can make day trading pennystocks a fastlane venture (which is VERY unethical) is if you:
A.) Position yourself as the "Guru"
B.) Set up a site with badass copy that attracts sidewalkers
C.) Set up a newsletter to capture your disciples emails
D.) Join a CPA Network for affiliates to send you traffic
E.) Buy an inactive penny stock one day,
F.) Send them a "Groundbreaking" Stock Report that a new stock pick is set to inflate at a rate of 4000%
G.) Put YOUR stocks for sale at a 4000% increase

The funny thing about it is, the "guru" buys the stock lets say at .002 a share and puts it up for sale at .08 a share - then he sends out the "groundbreaking stock pick" as the stock market opens & all the sidewalkers gather their money ready for the 4,000% increase, & try to all buy in. When all the sudden big demand meets with no supply on a dead stock, guess who gets the 4000% increase? I'm sure you guessed it.

He then takes a screenshot of the 4,000% increase that day, rewrites a newsletter and "congratulates" everybody on the good day & to be ready for tomorrows "under the table" stock pick. And the cycle continues...

 

[Deleted21704]

The only way you can make day trading pennystocks a fastlane venture (which is VERY unethical) is if you:
A.) Position yourself as the "Guru"
B.) Set up a site with badass copy that attracts sidewalkers
C.) Set up a newsletter to capture your disciples emails
D.) Join a CPA Network for affiliates to send you traffic
E.) Buy an inactive penny stock one day,
F.) Send them a "Groundbreaking" Stock Report that a new stock pick is set to inflate at a rate of 4000%
G.) Put YOUR stocks for sale at a 4000% increase

The funny thing about it is, the "guru" buys the stock lets say at .002 a share and puts it up for sale at .08 a share - then he sends out the "groundbreaking stock pick" as the stock market opens & all the sidewalkers gather their money ready for the 4,000% increase, & try to all buy in. When all the sudden big demand meets with no supply on a dead stock, guess who gets the 4000% increase? I'm sure you guessed it.

He then takes a screenshot of the 4,000% increase that day, rewrites a newsletter and "congratulates" everybody on the good day & to be ready for tomorrows "under the table" stock pick. And the cycle continues...

Funny thing is, it's not even that hard. Here's a probabilistically GUARANTEED way to make money as a guru:

1. Obtain a BIG list of addresses, let's say 10,000
2. Send half a newsletter explaining why the market will go up, and the other half a newsletter explaining why the market will go down
3. Next month, do the same thing, but only to the people who got the correct prediction.
4. Repeat for the next 4-5 months
5. In 6 months, 1.5625% of your initial list will think you're a GENIUS because your prediction was correct 6 months in a row
6. Send invitations to that group for your EXCLUSIVE email list with market secrets for just $1,000 a year
7. Retire rich and guilty

EDIT: simplified #3

 

[Ashten]

Funny thing is, it's not even that hard. Here's a probabilistically GUARANTEED way to make money as a guru:

1. Obtain a BIG list of addresses, let's say 10,000
2. Send half a newsletter explaining why the market will go up, and the other half a newsletter explaining why the market will go down
3. Next month, do the same thing, sending bullish newsletters to half of the first half and half of the second half and bearish newsletters to the other two quarters
4. Repeat for the next 4-5 months
5. In 6 months, 1.5625% of your initial list will think you're a GENIUS because your prediction was correct 6 months in a row
6. Send invitations to that group for your EXCLUSIVE email list with market secrets for just $1,000 a year
7. Retire rich and guilty

You can be the Wolf of Wallstreet Status w/o the need for 500 sales people. The wonderful convenience of technology

 

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[ArthurDayne]

Why stocks when you could daytrade currencies or micro-futures 23/6? Long or short.

How is daytrading currencies any different from penny stocks? Do you really think you have an informational advantage, or more laughably an "edge", in currencies?

 

[MyronGainz]

Hey man,

Tim seems to have a lot of controversy surrounding him and while he says he makes a load of money trading stocks he makes a whole lot more telling people he can make them rich. A lot of the stocks he trades are very illiquid and volatile which doesn't seem to be a good long term plan for wealth.

You read the Naked Trader? Technically some of the stocks he trades are penny stocks but he comes across as a lot less scammy and does admit that it takes a lot of work to make money from trading stocks, he posts all his trades online which is interesting: http://nakedtrader.co.uk/trades.htm

Do you like Huey Lewis and the News?

 

[SJVC]

@MyronGainz Yes, and Genesis. Do you like Phil Collins?

 

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[Berters]

How is daytrading currencies any different from penny stocks? Do you really think you have an informational advantage, or more laughably an "edge", in currencies?

I'd be interested to hear more about your opinion on forex trading, I read your posts about where you work etc.

I have spoken to a couple of people who trade profitably, and for a living. One who uses strong support/resistance areas, daily pivot points, and the previous day's OHLC, and one who uses a bot that he coded to make hundreds of tiny trades (based on something or other!) to consistently profit for now at least. The second person is only using his bot for personal gain, and it seems to be working damn well for now at least!

I don't trade forex, it's just interested me for while. Maybe I'll play with a live account one day

 

[MyronGainz]

@MyronGainz Yes, and Genesis. Do you like Phil Collins?

I've been a big Genesis fan ever since the release of their 1980 album, Duke. Before that, I really didn't understand any of their work. Too artsy, too intellectual. It was on Duke where Phil Collins' presence became more apparent. I think Invisible Touch was the group's undisputed masterpiece. It's an epic meditation on intangibility. At the same time, it deepens and enriches the meaning of the preceding three albums. Christy, take off your robe. Listen to the brilliant ensemble playing of Banks, Collins and Rutherford. You can practically hear every nuance of every instrument. Sabrina, remove your dress. In terms of lyrical craftsmanship, the sheer songwriting, this album hits a new peak of professionalism. Sabrina, why don't you, uh, dance a little. Take the lyrics to Land of Confusion. In this song, Phil Collins addresses the problems of abusive political authority. In Too Deep is the most moving pop song of the 1980s, about monogamy and commitment. The song is extremely uplifting. Their lyrics are as positive and affirmative as anything I've heard in rock. Christy, get down on your knees so Sabrina can see your a**hole. Phil Collins' solo career seems to be more commercial and therefore more satisfying, in a narrower way. Especially songs like In the Air Tonight and Against All Odds. Sabrina, don't just stare at it, eat it. But I also think Phil Collins works best within the confines of the group, than as a solo artist, and I stress the word artist. This is Sussudio, a great, great song, a personal favorite.

 

[ArthurDayne]

I'd be interested to hear more about your opinion on forex trading, I read your posts about where you work etc.

My only opinion is that as the most liquid markets in existence, currency markets are immensely hard to or predict. Carry trades for interest rate arbitrage make more logical sense to me, but someone sitting at home playing the Euro just seems pointless. There's no informational advantage to be gained in currency markets, unless you're a prop trader at JP morgan with billions who has the kind of balance sheet and connections to move the market. Otherwise you're just using a lot of leverage and hoping for the best.

I'm sure there are people who've made money trading currencies from home, much like there are people who make money with bitcoin or from trading tulips. I'm just not convinced it's an area in which a person can apply skill to make any kind of regular profit. At the end of the day, if you really think you can predict what the euro will do tomorrow, you should be working with a bank's balance sheet to make hundreds of millions in profit from your prophet-like ability.

 

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[SJVC]

@MyronGainz Hold on guys... I have to return some video tapes.

 

[Berters]

My only opinion is that as the most liquid markets in existence, currency markets are immensely hard to or predict. Carry trades for interest rate arbitrage make more logical sense to me, but someone sitting at home playing the Euro just seems pointless. There's no informational advantage to be gained in currency markets, unless you're a prop trader at JP morgan with billions who has the kind of balance sheet and connections to move the market. Otherwise you're just using a lot of leverage and hoping for the best.

I'm sure there are people who've made money trading currencies from home, much like there are people who make money with bitcoin or from trading tulips. I'm just not convinced it's an area in which a person can apply skill to make any kind of regular profit. At the end of the day, if you really think you can predict what the euro will do tomorrow, you should be working with a bank's balance sheet to make hundreds of millions in profit from your prophet-like ability.

I certainly understand and agree with what you say there. From watching the charts every now and again I do believe that there is money to be made from lower risk trades at levels or pivot points. Seems to me that it's almost a self fulfilling prophecy – if institutional traders are watching daily pivot points, and their clients are placing orders at pivot points, and retail 'traders' have their eyes on pivots points, then it seems likely price is going to react around pivot points.

Take the GBP/USD, today it touched the daily pivot before making its way down to support 1. Taking the trend into account, as well as looking to the left for fresh levels, and not letting the news wipe you out, it seems like trading between pivot points and mids alone on certain currencies can provide lower risk profitable opportunities.

 

[Vigilante]

I bought a penny stock once.

I put in $1k.

It went through a 50 billion (or what ever) to one reverse split.

A day or so later I was left with $11.

F*ckers.

Never again. Un(der)regulated.

 

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[RadioActive]

Someone just watched The Wolf on Wall Street

 

[bringitnow28329]

I've traded for a living for 10 years. I trade all different type of assets classes but I focus on NASDAQ, AMEX, and NYSE stocks in the $1.00-15.00 range. A lot of these are classified as penny stocks even though they don't trade for pennies. I used to trade OTCBB and Pink Sheet scam stocks but the liquidity in this market has disappeared after the downfall of some of the big stock promotion groups that pump and dumped stocks. Now the liquidity has flowed into exchange listed small and microcaps. The true penny stocks market is not really a viable trading vehicle anymore for someone like myself that takes $50k positions.

Here's some things you should know about trading.

1. It took me 2 full years of losing before I ever earned a profit in the market.

2. Trading is one of the hardest skills to learn but quite easy once it starts to click. It takes a lot of hard work and effort to learn how to trade profitably. It's not something you will learn in a week or a month

3. Most people fail at trading because they think the stock market is a get rich quick scheme and treat it as such. Trading has to be done as a business. You take small to medium profits over and over again.

4, 95% of people lose money in trading because they look at the stock market like a giant casino. You should look at it as a casino but your perspective has to be from the seat of the house, not the customers to the casino. You have to learn how to take advantage of these unsophisticated people to profit in the market.

5. There's no holy grail trading system or day trading robot that will instantly let you make money from the market. Technical analysis does work, but not basic technical analysis which you can learn about in books and online for free. You have to reverse engineer technical indicators in order to take advantage of inexperienced people that don't understand how the game is played.

6. You can't make money "following" peoples trading alerts. This DOES NOT WORK. Despite being an egotistical shmuck, Tim Sykes does have a legitimate strategy but it requires $50,000+ to be able to trade like him (despite what he may advertise and make people believe) because you need to open brokerage accounts with 3-4 brokers and each require between $10,000 and $35,000. Tim Sykes does make several hundred thousand dollars from actual trading his own money, but he doesn't make enough to buy the Lamborghini that he drives. He sells pretty much worthless DVD's and useless trading alerts and brings in $4-5 million's a year doing this. The reason he seems to make money every single time is because he has 4000 subscribers to his alert services. When he sends an alert thousands of people follow him pushing the price of penny stock up or down based on his recommendation He then can sell into the subscribers and earn a profit nearly every time. If the stock does not go up he can also sell or cover his short trades into the subscribers and not lose much. All the subscribers lose big as they run for the exits when he is wrong.The stocks he alerts move so fast by the time you receive the alert the stock already moved $.25 to $1.00 and Tim is ready to exit his trade. You never can make the same profit as Tim because of all the competition between his subscribers who don't know how to trade and instead try to just follow him. The reality of the situation isTim is doing something called front running. Normally it would be illegal but he disclosed his position every time so it's not. None the less it's very unethical to sell these services. If you have a lot of money $50k+ you can scalp his alerts for profits but you WILL never make money with a small account or 1000, 2000, or 5000 and these are the main people who are attracted to penny stocks and the market (slow laners and blue collar workers).

7. The only way you can make money is to learn to make trading decisions yourself. Being self sufficient is essential.

8. Most people have no business being involved in trying to time the stock market. I spend 10-12 hours a analyzing stocks. I work very hard to be prepared and better informed then the guy that I am going up again. I have to do this because in the market you are in constant battle. You have to be more knowledgeable than the person who is on the other end of your trade because the money doesn't appear out of know where. It comes out of some suckers pocket because the stock market is a zero sum game where you always have one winner and one loser on every trade.

 

[Coalission]

If you're willing to take the type of risks you'd take with penny stocks, you might as well trade big board naked calls and puts, especially around earnings. Much more scale and liquidity, but just as gambly.

 

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[ArthurDayne]

the stock market is a zero sum game where you always have one winner and one loser on every trade.

That's simply not correct. If you're looking at 2 day traders, sure it's a zero sum game. But when you figure out how to make a quick $1000 and sell it at a slightly higher price to a guy who holds the stock for 5 years and makes a 40% return plus dividends, you've both achieved your goals. Options are mathematically a zero sum game - stocks are not. Different goals and time horizons mean you can both win or both lose.

I'm sure a lot of day traders felt like geniuses selling Heinz and Coca Cola to Warren Buffett at a small profit.

 

[NetNinja]

Been on the Tim Skyes site, been reading and following and even subscribed. Lots of information to take in. I am still processing the information. Probably take me another 6 months before I start to trade.
There are some brokerage houses that will let you open an account for $500 bucks but then the brokerage fees kill you.
If you have a 401k at your job some will let you buy in on some stocks and sometimes they will wave the brokerage fees.
If you happen to open an account with a brokerage house they have programs to let you paper trade so you can get the hang of buying and selling.
Setting stop losses.
Tim Sykes posts all his trades and releases teaching videos just about everyday of the trades he has made both good and bad.
Follow the stocks, do the research on the company. Read just about everything you can. Politics, Religion, Wars, Oil, technology, China.
Penny Stocks are not meant to hold forever. From what I have seen they are great to make your money quick and get out.
Buy a $1000 bucks worth of a company you have researched and if it goes up a $1.00 get out. Nobody says you have to stay in for the long haul.
So what if the stock go's to $10 a share. You made money and got out.
If you want long positions, Apple was a pretty good stock to hold after the split. 2 weeks ago it was down to $90 bucks a share now up to $95.00
Yahoo was down to $30 a share and now up to $35. They own 23% of Alibaba which is about to go IPO.
Even crackberry which was down to $8 a share is now up to 11.21.
The pre-release of their new hand held made the stock rise. There has been so much news on the buy that if you had purchased $1000 worth of shares it would have made $3200. Then minus the brokerage fees and taxes.
There are plenty of free sites to get stock info on.

I'll let you know 6 months from now how I am doing. I am reading, setting up my brokerage account.