Certainly don't , lot of these cheap stocks with high dividends are very risky.
Very basic newbie questions
- Thread starter nopeda
- Start date
"then trade cheap and risky stocks."
LOL, you the one who advised him of the above !!! Can't have it both ways sonny.
I bought 80k shares of AT, Atlantic Power Corp, at $1.80 and they paying little less than 5%, triple bottom on the weeklies.
Everything is risky if you are uneducated!!!
What are you trying to say ? this stock was over 20 . triple bottoms break down as well , I advised good dividend paying stocks for investing , and cheap , risky stocks for trading. You must be only " educated" trader on this board , is that what are you saying?
Not all cheap stocks are risky, if you look at history of the stocks to find they pay every year for past 3-4 years, look at past 3-4 years of earnings/debt(reason why they have debt) and they just going through hard times other than what most think. Power companies bought too much higher priced crude oil. There are many really good companies that are always cheap for investments, when they double=sell half and keep the rest, I have over 60 different stocks in which I have exactly done this and keep paying dividends while others think they are crappy risky cheap stock.
And you right, not all stocks will hold there patterns, but when stocks drop and provide sideways action, most of the time they will rise, I love looking for hidden gems under $5.00 bucks, I bought K-Mart long ago for 50 cents before Sears Holdings bought them and they went over $100. I look at reasons of whether they will go belly up or would someone else come to the rescue, power companies for cities, someone else would come in, unlike Enron.
Far more educated folks on this board than me, I am just a dumb trader who understands risk pretty well.
If getting these amount profit reguarly on monthoy investment, it's so good than loss, but so far I don't know how o start trading on stocks, still often trade on pair forex
Elsewhere I was told that penny stocks are stocks that used to be of greater value but have dropped to their present level...they are in the "grave yard". I had thought it was just the opposite and they were beginning stocks that hadn't reached a higher value yet. The former position is not hard to explain or appreciate whether it's true or not. If it is true it's certainly good reason to avoid them from my current pov, but it's still hard to believe it's always the case and sometimes it might not apply at all. Looking at the charts seems like it should let us know if it's true or not for the stocks in question, again from my current pov.
Today I read a bit from a "Day Trading for Dummies" pdf and it says that whatever stock a person is dealing with they sell it at the end of the day in order to day trade. The very idea is again not hard to appreciate, but makes no sense at all from my current pov. Why would a person deliberately restrict themselves to such a horrible position??? I'm trying to imagine why if a person bought a stock at one price and at the end of the day it hadn't risen to the point they wanted to sell at but instead it dropped, they would sell it anyway and not hope for something better in following days just so they could still call themselves a "day trader", or why else they would do it if there are better reasons. If there are, do you know what they are?
It would tie up their capital, increase their margin requirements, and be holding on to a loser. Have you heard of "cut losses short and let profits run"?
I think your specific question here probably stems from some confusion between daytrading and investment fundamentals, David. They're two very different things.
I like with these quotation, cut your loss early and let your profit run, alhough the market move dynamic and unpredicatble, as trader also need to understand and learn certain parameter to determine changing trend market, if they already have these parameter to determine exit point, it will maximize trading skill
Would you be willing to share any of the specific companies you're referring to, or explain how to find similar ones? Can we search for stocks that are in a price range from $... to $..., for example?