AIG, FNM, FRE, C etc- The Ultimate Penny Trades

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Port1385

Is anyone trading big cap penny stocks? Lets post up some charts and see what strategies we can come up with...any takers?
 
Quote from Port1385:

Is anyone trading big cap penny stocks? Lets post up some charts and see what strategies we can come up with...any takers?
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Craps would be more profitable.

Consider this, those moves are occurring under a very low liquidity environment and this makes timing very tricky.

Also you are incurring a tremendous amount of liquidity risk if you hold overnight. You never know when one of those stocks goes dead flat. Most penny stock traders blow up not due to leverage but due to not being able to sell their positions.


My advice would be if you engage in this: Only go short, only intra-day.
 
Im not saying to throw your entire wad at these pennies. The trick is to only play the pennies with 5-10k. You can catch the day to day fluctations and make a few grand a week off of 10k. Thats how to trade the pennies.

These pennies, however, are highly liquid trading at millions a day. Im betting that some are throwing upwards of over 100 grand at each and making (or losing) considerably...
 
Quote from Port1385:

Im not saying to throw your entire wad at these pennies. The trick is to only play the pennies with 5-10k. You can catch the day to day fluctations and make a few grand a week off of 10k. Thats how to trade the pennies.

These pennies, however, are highly liquid trading at millions a day. Im betting that some are throwing upwards of over 100 grand at each and making (or losing) considerably...
More...


Yes, they are trading at millions. But this has to be seen relative to their stock price. Millions at $30/share will result in a different fill than at $0.40/share. Liquidity has dropped, it just does seem like it.
 
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