Which way? Penny Stocks education

[themickey]

One of my penny stocks just went belly up, gone into receivership, $12,000 investment down the gurgler. In the earlier days of experimenting with the algo I'm using, I initially went in too large size, plus didn't have the experience to differentiate with duds. This particular Co. I early on knew it was a dud, but thought it might turn around as it sold its products on Amazon.
As mentioned earler, any stock with a mkt cap less than $100mil is fraught with lack of spending liquidity and I deem them higher risk than others, purely because they are often just too cash strapped to grow.

TORCHED!!!

 

[Overnight]

Made by chemists not bakers these days. Yet they still cost a pretty penny, even at 2 for 1.

Buy the in store versions.

Dude, the frak. I was going down good memory lane with donuts, and you had to bring up chemistry and science making my donuts taste less tasty than my ex-fiance'? Fuck you! LOL

Fine, toss the donuts into the alley where...

 

[themickey]

When you play the penny stock bs game, your chances of success are slim.
I'll make a guess here, about 50% of regular medium to large cap stocks are worth investing in.
About 95% of penny stocks turn into duds, the 5% which survive mostly have spectacular returns compared to regular stocks. Finding that 5% is the difficult part.

Now I'll relate another misadventure which strikes penny stock players.
Let's pretend say you buy a stock Galileo Mining Ltd, GAL.AX.
For months or even years this stock goes nowhere, maybe downhill which is very typical penny stocks behaviour.
It gets to the stage your patience wears thins, you just get pissed off week after week, year after year seeing this lame duck go nowhere, so you decide, "next time this goes up I'm outta here". (can you relate?)
Welp, one day out of the blue Galileo Mining makes an announcement and 'the cripple' leaps up 250%.
If you are at home on the day, more likely than not you will sell asap.
If you are a wage slave at work and come home at night, see the news and see the 250% leap up share price, you will put in a sell order for on open of the following day.

The problem is, Galileo Mining may have a fair dinkum bonanza on its hands and you've sold out exactly at the wrong time??? Who knows?

PS: I do not hold or have any interest in above stock.

 

[easymon1]

When you play the penny stock bs game, your chances of success are slim.
I'll make a guess here, about 50% of regular medium to large cap stocks are worth investing in.
About 95% of penny stocks turn into duds, the 5% which survive mostly have spectacular returns compared to regular stocks. Finding that 5% is the difficult part.

Now I'll relate another misadventure which strikes penny stock players.
Let's pretend say you buy a stock Galileo Mining Ltd, GAL.AX.
For months or even years this stock goes nowhere, maybe downhill which is very typical penny stocks behaviour.
It gets to the stage your patience wears thins, you just get pissed off week after week, year after year seeing this lame duck go nowhere, so you decide, "next time this goes up I'm outta here". (can you relate?)
Welp, one day out of the blue Galileo Mining makes an announcement and 'the cripple' leaps up 250%.
If you are at home on the day, more likely than not you will sell asap.
If you are a wage slave at work and come home at night, see the news and see the 250% leap up share price, you will put in a sell order for on open of the following day.

The problem is, Galileo Mining may have a fair dinkum bonanza on its hands and you've sold out exactly at the wrong time??? Who knows?

PS: I do not hold or have any interest in above stock.

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There's more than one way to skin a cat...
https://www.elitetrader.com/et/threads/charts-for-no-reason.344272/page-23#post-5595820

 

[themickey]

‘Dummy bids part of fun’: HotCopper trader guilty of manipulation
Liam WalshReporter Jun 7, 2022
https://www.afr.com/companies/minin...trader-guilty-of-manipulation-20220607-p5arr9

A trader who pumped up and then sold penny stocks in sectors from mining to electronic goods has pleaded guilty to share manipulation, in a historic case involving posts on website HotCopper.

Gabriel Govinda, using the online identity Fibonarchery, even once boasted: “Dummy bids are all part of the fun and games and cat and mouse of the stockmarket!”

The plea is the first under Corporations Act provisions relating to disseminating information. James Alcock

The 40-year-old’s pleas to 23 charges of share manipulation and 19 charges of illegally disseminating information related to the manipulation, entered in Melbourne’s Magistrates Court, could entail serious penalties of jail time or hefty fines.

The Australian Securities and Investments Commission, which announced the pleas on Tuesday and had investigated the crimes, said it was the first conviction under the information dissemination provisions of 1041D of the Corporations Act.

It comes more than seven years after the crimes were committed.Still, ASIC held the case up as an example of its action against “pump and dump” schemes.

ASIC said Govinda used 13 different share trading accounts, held in the names of relatives and friends, to manipulate the price.

He used techniques known as wash trading – buying and selling between accounts he controlled – which has or is likely to create a false or misleading appearance about active trading in the market. ASIC said Govinda also used dummy bids for company shares, which falsely increased the perceived demand and so price for the stocks.

Stocks targeted
He was dabbling in mining exploration and resource stocks including Brumby Resources, BBX Minerals, AVZ Minerals, Zeus Resources, Stratum Metals, 3D Resources, Taruga Gold, Haranga Resources, Regalpoint Resources, Altura Mining and Alchemy Resources.

Other charges related to manufacturer of trucks to mining and construction industry ORH, environmental consulting and technology provider Pacific Environment, hot water and cooling systems distributor Quantum Energy, tracking system developer Bluechiip and biotechnology outfit Sun Biomedical.

Other technology-related companies whose shares were caught up in the trading were operator of e-commerce brands Disruptive Investment, mobile phone supplier Cellnet and electronic components maker Rectifier Technologies.

Share prices in many of the shares at the time of trading were often below 10¢ for the companies. Some were below 1¢.


‘ASX Wolf’ civil case
The dissemination charges all relate to posts he put on HotCopper, a website for traders notorious for inflammatory commentary. “He was seeking to increase (or pump) the share price, then selling (or dumping) the listed stocks at a higher price,” ASIC said.

The commission said the maximum penalty for each charge is 10 years’ imprisonment or fines of up to $765,000, or both. The matter had been adjourned to a mention hearing for July 29.

Meanwhile,ASIC’s separate civil action against Gold Coast-based share trader Tyson “ASX Wolf” Scholzhas progressed with a seven-day trial scheduled to be heard from August 29.

Mr Scholz, who portrayed a life of share trading, yachts and Lamborghinis on Instagram under the moniker ASX Wolf, has been accused by ASIC of carrying on a financial services business without holding an Australian financial services licence by delivering training courses and seminars about trading.

ASIC is seeking orders prohibiting him from engaging in such activities. Mr Scholz is defending the action and not accused of any crimes.

His barrister Robert Dick, SC, told the Federal Court in Brisbane on Tuesday that ASIC had “marshalled a substantial body of evidence” including five lay witnesses and ASIC witnesses

 

[themickey]

None of the penny stocks this guy was trading I'm familiar with other than AVZ Minerals and Altura.
They are off the radar, obscure.

As for the Australian Hotcopper trading forum, to me it's like an idiots playground.

 

[themickey]

It comes more than seven years after the crimes were committed.Still, ASIC held the case up as an example of its action against “pump and dump” schemes.

LOL

 

[tomkat22]

I'm curious if you or anyone you know has been holding a penny stock that went parabolic? Watching AERC today got me to thinking if someone had a sure-fire method of spotting situations like that in advance they'd be a millionaire within a few weeks. (I know that probably sounds like a "duh" statement.LOL)

 

[themickey]

I'm curious if you or anyone you know has been holding a penny stock that went parabolic? Watching AERC today got me to thinking if someone had a sure-fire method of spotting situations like that in advance they'd be a millionaire within a few weeks. (I know that probably sounds like a "duh" statement.LOL)

There's no surefire anything in trading, usually it's a slow grind, but it seems like there may be a few of the older hands on ET who daytrade are getting reasonably consistent impressive results, they may be using some automation as well.
Also some of the savvy options traders are pulling in some coin apparently.

The only 'surefire' I know of though is being systematic, that is, you have a winning system(s) and you just keep repeating it day in and out.

Now much of my trading includes a lot of penny stocks, but I tend to hold these for a while, my best one so far is NWE.AX which my average price is approx 1c and I hold 1mil shares so for every 1c it gains I win $10k. It's natural gas and slowly grinding upward.
Held it for maybe 1 1/2 years now, so it's nothing spectacular.

 

[Smokey]

There's no surefire anything in trading, usually it's a slow grind, but it seems like there may be a few of the older hands on ET who daytrade are getting reasonably consistent impressive results, they may be using some automation as well.
Also some of the savvy options traders are pulling in some coin apparently.

The only 'surefire' I know of though is being systematic, that is, you have a winning system(s) and you just keep repeating it day in and out.

Now much of my trading includes a lot of penny stocks, but I tend to hold these for a while, my best one so far is NWE.AX which my average price is approx 1c and I hold 1mil shares so for every 1c it gains I win $10k. It's natural gas and slowly grinding upward.
Held it for maybe 1 1/2 years now, so it's nothing spectacular.
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Did you catch HKD btw? Lol