Just as a reminder also have a stop loss and exit plan. If you’re in a penny stock and it isn’t moving where you thought it was going to move cut your losses early. Don’t be foolish and keep buy “low”. In most case averaging down can crush you. Losers average down and winners average up. Hope and believe a stock will go up or recover don’t mean that is what actually will happen. 95% of people lose in the OTC because they rely too much on hope. Better to get out of penny stock with some money even if it is a loss than it is to watch yourself lose more and money each day hoping the stock has finally found a bottom. There is no bottom with most of these only pump and dumps, reverse splits, and authorized share increases. Learn to sell on the pump and move on.
Will be putting together an article today on recognizing pump and dumps. As most people that have been in this group awhile know almost all penny stocks are pump or dumps. You can’t directly tell a person that they are about to lose all their money because they got in at the wrong time. So the article will be on recognizing so of the wording pumpers use like “bashers” or talk about stocks being “cheapies” and one we have all heard “weak hands”. Now it takes very little skill to point to a penny stock and say it is a scam. Almost all are scams and crappy companies. It does take skill to be able to recognize when the stock is being pumped and still has momentum to go up or when a stock is being dumped and when you need to either avoid or sell as quickly as possible. I have certain things I look for and will be putting into the article, what are some of the things other experienced traders in the group look for?
· Reply · April 17 at 11:32am