Penny Stock traders and the new world order:
This is my personal opinion, a newbe to this kind of trade. With careful analysis of the BB trading patterns, I realized some interesting things. Think of this as a newcomers observations.
Penny traders can be put into four groups: newcomers, long termers (though rare), daytraders on mainly info and rumered news, and hypesters. A fifth group are made of hypesters that are low enough to deal with fraud companies and hype for them. In a typical stock price increase, one group passes the stock to another in an orderly fashion starting from the fifth group up to the newcomers who usually end up holding the bag. There is some variations, but generally this is how things work. No matter what you do, if you are a newcomer, you will lose money. It will take a month or two of hits before you will realize how things work and at least graduate next level. If you try to learn by watching, you will not learn, you have to get your hand dirty a couple of times before you learn when to press the buy button and when to press the sell button. In other words you getting molded, and soon will become one of these hypsters and daytraders. That happens only if you could survive this scary first stage.
Personally, I think of my self now at the second level, I hope I am right. I was lured more than a month ago by the BAAT explosion to the penny stock market. Through my first month ordeal, luckily, I came out even. Though lost money in BAAT, NETZ, HNLY, and some more, I was damn enough at the time to hold BGIX and ride it all the way up. Now, probably I would have sold it earlier. Most of the oldies in this game do not know a good thing when they see it, they typically bail out at 50% profit, if it goes up that far, they think that this 50% is a result of their hyping and some time it is. Therefore, a person like my can get lucky (with BGIX) as a newcomer and live to tell about it. The people whom made the most profit out of BAAT are newcomers that got in early and stayed with it.
Now that I am in the second level, or I hope that I am, I mainly buy on rumered news, or extremely good news (i.e. TNRG for now). Rumered news are usually believed from people whom followed their prospective company for a while, a thread leader for example. Two people that I have learned to watch out from when they cry news are TokyoMEX and BigDog. They might be smart in picking winners, but they usually lie when they say news is coming out.
The above is just my humble opinion on this rather interesting market. I hope nobody interprets what I say as being offensive.
Thanks,
Tariq |
