Trading Penny Stocks

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.

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

systematictrader · May 12, 2020

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

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

Black1Star7 · May 12, 2020

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

murray t turtle · 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.

%%
GOOD POINTS but bitcon is not really comparable to penny stocks>some go past five bucks>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

qaz · May 12, 2020

Gamblers have better odds dabbling in penny stocks rather than playing slots.

guru · May 12, 2020

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

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)

guru · May 12, 2020

gaussian said:
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.

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.

CaptainObvious · May 12, 2020

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.

guru · May 12, 2020

CaptainObvious said:
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.

CaptainObvious · May 12, 2020

guru said:
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 and momentum around the same time, 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