Trading Penny Stocks

guru · May 11, 2020

I think this forum (ET) has a lot of people interested in trading penny stocks, but related discussions usually end up being about several well-known traders who charge a lot of money for training, chatrooms, custom scanners, etc.
So I just want to point out an inexpensive resource I've just stumbled upon, a few highly-rated training videos from different traders, at around $10 each:
https://www.udemy.com/courses/search/?q=penny+stocks&ratings=4.0&sort=relevance

I don't vouch for any of them and don't even think they can be very useful, unless someone will one day confirm that some specific ones were useful. I may also spend $10 some day when I feel like learning more about trading penny stocks. I just wouldn't spend $2K that some traders are charging.

smallfil · May 11, 2020

guru said:
I think this forum (ET) has a lot of people interested in trading penny stocks, but related discussions usually end up being about several well-known traders who charge a lot of money for training, chatrooms, custom scanners, etc.
So I just want to point out an inexpensive resource I've just stumbled upon, a few highly-rated training videos from different traders, at around $10 each:
https://www.udemy.com/courses/search/?q=penny+stocks&ratings=4.0&sort=relevance

I don't vouch for any of them and don't even think they can be very useful, unless someone will one day confirm that some specific ones were useful. I may also spend $10 some day when I feel like learning more about trading penny stocks. I just wouldn't spend $2K that some traders are charging.

Well, I guess for $10 a pop is not too bad. Most of the information probably, available on You Tube or the internet. Considering Timothy Sykes charges thousands of dollars for supposedly, training you and a couple of thousand dollars more for his dvds, this would probably, be a cheap way to learn to trade penny stocks.

Overnight · May 11, 2020

guru said:
I think this forum (ET) has a lot of people interested in trading penny stocks, but related discussions usually end up being about several well-known traders who charge a lot of money for training, chatrooms, custom scanners, etc.
So I just want to point out an inexpensive resource I've just stumbled upon, a few highly-rated training videos from different traders, at around $10 each:
https://www.udemy.com/courses/search/?q=penny+stocks&ratings=4.0&sort=relevance

I don't vouch for any of them and don't even think they can be very useful, unless someone will one day confirm that some specific ones were useful. I may also spend $10 some day when I feel like learning more about trading penny stocks. I just wouldn't spend $2K that some traders are charging.

I think blatant penny-stock trading talk is frowned upon here, last I heard from the mods.

KISS · May 11, 2020

The 'game' in penny stocks is the 'market maker' controls the company, stock, and float.
Everybody who participates in penny stocks knows it BS and pipe dreams and play along anyways like ponzi scheme. or few gullible kids or seniors new to the game, without promotion and hype, these penny stocks have no interest from the public or pension money and none have any institutional investor.

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

I think its the same in the futures, options and even forex and bitcoin..you get the idea.

gaussian · May 11, 2020

KISS said:
The 'game' in penny stocks is the 'market maker' controls the company, stock, and float.
Everybody who participates in penny stocks knows it BS and pipe dreams and play along anyways like ponzi scheme. or few gullible kids or seniors new to the game, without promotion and hype, these penny stocks have no interest from the public or pension money and none have any institutional investor.

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

I think its the same in the futures, options and even forex and bitcoin..you get the idea.

Yes, penny stock trading is "extreme leverage" for people who don't have accounts that can afford leverage. For some trading weed stocks you can get an effective 100:1 leverage because the price is 0.005. I realize this isn't real gearing, but it's close enough.

It's frowned upon almost everywhere because it's either a pump-and-dump (a friend of a friend told me this thing is going to blow) or an extremely risky investment.

Moreover, its nearly impossible to value these companies properly. Mods here probably don't like them being talked about because just the act of talking about penny stocks attracts scammers like flies to shit. I'd imagine they'd be more receptive if you posted an actual investment thesis though. Good luck finding a 10-K for one of these guys.

However, I would not discredit a stock that doesnt have institutional backing. Often times small and mid cap companies don't have analyst coverage and therefore aren't really taken in by BBs. This doesn't make them bad. In fact, I'd argue it makes them more attractive. The principle weakness of penny stocks isn't in the fact they're cheap and unknown, it's the fact they're cheap and their value is unknown.

To OP's point there are a ton of hidden gems on udemy for dirt cheap. Take everything with a grain of salt but sometimes you can find some real diamonds in the rough on almost any topic.

JesseJamesFinn1 · May 11, 2020

guru said:
I think this forum (ET) has a lot of people interested in trading penny stocks, but related discussions usually end up being about several well-known traders who charge a lot of money for training, chatrooms, custom scanners, etc.
So I just want to point out an inexpensive resource I've just stumbled upon, a few highly-rated training videos from different traders, at around $10 each:
https://www.udemy.com/courses/search/?q=penny+stocks&ratings=4.0&sort=relevance

I don't vouch for any of them and don't even think they can be very useful, unless someone will one day confirm that some specific ones were useful. I may also spend $10 some day when I feel like learning more about trading penny stocks. I just wouldn't spend $2K that some traders are charging.

. Are you talking all stocks below $5 or BB, Gray and Pinks Timmy Syk plays?
I was given a free membership to Pristine Day Trading back in 04. After looking at how the calls were made versus just staring at the LL2 or T/S and counting like Darvas it shocked me people pay $1000 to $3000 a month instead of buying a stock scanner like Esignal. It was magic seeing the stock picks dump after all the traders bought.

systematictrader · May 12, 2020

guru said:
I think this forum (ET) has a lot of people interested in trading penny stocks, but related discussions usually end up being about several well-known traders who charge a lot of money for training, chatrooms, custom scanners, etc.
So I just want to point out an inexpensive resource I've just stumbled upon, a few highly-rated training videos from different traders, at around $10 each:
https://www.udemy.com/courses/search/?q=penny+stocks&ratings=4.0&sort=relevance

I don't vouch for any of them and don't even think they can be very useful, unless someone will one day confirm that some specific ones were useful. I may also spend $10 some day when I feel like learning more about trading penny stocks. I just wouldn't spend $2K that some traders are charging.

penny stocks being defined as 10 or 5 bucks or under or truly penny as in under a dollar?

systematictrader · May 12, 2020

KISS said:
The 'game' in penny stocks is the 'market maker' controls the company, stock, and float.
Everybody who participates in penny stocks knows it BS and pipe dreams and play along anyways like ponzi scheme. or few gullible kids or seniors new to the game, without promotion and hype, these penny stocks have no interest from the public or pension money and none have any institutional investor.

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

I think its the same in the futures, options and even forex and bitcoin..you get the idea.

Always the guy who never done it know it all, i know people making thousands a day in penny stocks

systematictrader · May 12, 2020

smallfil said:
Well, I guess for $10 a pop is not too bad. Most of the information probably, available on You Tube or the internet. Considering Timothy Sykes charges thousands of dollars for supposedly, training you and a couple of thousand dollars more for his dvds, this would probably, be a cheap way to learn to trade penny stocks.

At least those who sell it would have it organized in an orderly fashion, or at least the thought is they would

systematictrader · May 12, 2020

gaussian said:
Yes, penny stock trading is "extreme leverage" for people who don't have accounts that can afford leverage. For some trading weed stocks you can get an effective 100:1 leverage because the price is 0.005. I realize this isn't real gearing, but it's close enough.

It's frowned upon almost everywhere because it's either a pump-and-dump (a friend of a friend told me this thing is going to blow) or an extremely risky investment.

Moreover, its nearly impossible to value these companies properly. Mods here probably don't like them being talked about because just the act of talking about penny stocks attracts scammers like flies to shit. I'd imagine they'd be more receptive if you posted an actual investment thesis though. Good luck finding a 10-K for one of these guys.

However, I would not discredit a stock that doesnt have institutional backing. Often times small and mid cap companies don't have analyst coverage and therefore aren't really taken in by BBs. This doesn't make them bad. In fact, I'd argue it makes them more attractive. The principle weakness of penny stocks isn't in the fact they're cheap and unknown, it's the fact they're cheap and their value is unknown.

To OP's point there are a ton of hidden gems on udemy for dirt cheap. Take everything with a grain of salt but sometimes you can find some real diamonds in the rough on almost any topic.

This is true