| Author: |
[Investments] Topic: Looking to start trading. |
|
koman22 |
 View Space | Friends | Playbook | |
Prospect
Joined: Oct 2010
Posts: 323
Location: Texas |
#1 Posted: 4/6/2011 9:19:59 PM 
|
|
quote |
|
wallstreetcappers |
View Space | Friends | Playbook | |
Covers Linesmen
Joined: Feb 2003
Posts: 47710
Location: United States |
#2 Posted: 4/6/2011 9:34:56 PM
Best advice I can give you, be prepared to lose every single dollar in your account if you are trading penny stocks.
|
|
quote |
|
koman22 |
View Space | Friends | Playbook | |
Prospect
Joined: Oct 2010
Posts: 323
Location: Texas |
#3 Posted: 4/6/2011 9:44:53 PM
|
|
quote |
|
TheMadGreek |
View Space | Friends | Playbook | |
Rookie
Joined: Jan 2008
Posts: 815
Location: |
#4 Posted: 4/6/2011 9:50:55 PM it depends on what your trying to do with that $400 I was lucky in starting with $100,000 but if I had $400 what I would do is invest in a solid stock that pays a nice dividend.. perhaps AT&T, Penn West Energy Trust or basically anything that is solid with a good dividend.. every single month add another $50 to it and buy more shares with it.. always reinvest the dividends.. do it for the long term.. much better then trading penny stocks in my opinion to actually start "trading" you need to invest atleast $10,000 |
|
quote |
|
wallstreetcappers |
View Space | Friends | Playbook | |
Covers Linesmen
Joined: Feb 2003
Posts: 47710
Location: United States |
#5 Posted: 4/6/2011 9:55:10 PM QUOTE Originally Posted by koman22:
I see. I guess I'm not going with penny stocks then haha. I was thinking about starting small. About $400.
I dont mean that in a nasty way, in fact many of us (me included) tried the penny stock route and the fact is that penny stocks are manipulated and trading with 400 bucks, the commissions will chew you up..
Maybe you beat the averages and make a killing, it is possible but the odds are very long that the small fish beat the market in the long run. |
|
quote |
|
|
|
koman22 |
View Space | Friends | Playbook | |
Prospect
Joined: Oct 2010
Posts: 323
Location: Texas |
#6 Posted: 4/6/2011 9:57:36 PM
|
|
quote |
|
koman22 |
View Space | Friends | Playbook | |
Prospect
Joined: Oct 2010
Posts: 323
Location: Texas |
#7 Posted: 4/6/2011 9:59:06 PM QUOTE Originally Posted by wallstreetcappers:
I dont mean that in a nasty way, in fact many of us (me included) tried the penny stock route and the fact is that penny stocks are manipulated and trading with 400 bucks, the commissions will chew you up..
Maybe you beat the averages and make a killing, it is possible but the odds are very long that the small fish beat the market in the long run.
I understand. I think I will just wait and put around 2k in and bet on solid stocks instead of going the penny stock route.
|
|
quote |
|
wallstreetcappers |
View Space | Friends | Playbook | |
Covers Linesmen
Joined: Feb 2003
Posts: 47710
Location: United States |
#8 Posted: 4/6/2011 10:05:53 PM
Penny stocks are like hitting Vegas..maybe you win, maybe you lose.
|
|
quote |
|
koman22 |
View Space | Friends | Playbook | |
Prospect
Joined: Oct 2010
Posts: 323
Location: Texas |
#9 Posted: 4/6/2011 10:30:38 PM 
|
|
quote |
|
Jamill24 |
View Space | Friends | Playbook | My Sportsbook: Las Vegas Hotel and Casino | |
Veteran
Joined: Mar 2004
Posts: 1319
Location: Colorado |
#10 Posted: 4/8/2011 12:28:00 AM
My one piece of advice to watch for on that website is the 'pumpers' and 'bashers' All in all, you can learn a lot how penny stocks work and traded from Ihub. And as Wall stated earlier, penny stocks are heavily manipulated and difficult to gauge which direction they will move. Good Luck! |
|
quote |
|
atlasshrugged |
View Space | Friends | Playbook | |
Captain
Joined: May 2008
Posts: 9664
Location: Massachusetts |
#11 Posted: 4/10/2011 12:30:48 AM QUOTE Originally Posted by koman22: I've had an etrade and charles schwab account for a while now but have never used either for trading. What I'm looking to do is find some good resources dealing with penny stocks or things of that nature so I can earn a solid return every month. It would be great if anyone could point me towards a good site or has any picks themselves. Thanks in advance.
start with at least 20K (prolly need 75K+ to have a rational risk/reward scenario and trade 4 or 5 contracts while maintaining bankroll protection) and trade 1-2 ES contracts per trade. set a firm stop loss at -.50 ticks (don't set it as a good to cancel limit order have it prepared as a market order cuz they will chew up that limit order) and look to grind out 2-3 point moves in the S&P. here and there you can get a 4, 6, 8, 10, 12, or bigger move in the S&P but don't be greedy. learn the charts and study the garbage out of the charts and find your support and resistance levels.
ES is the ticker for the S&P 500 e-mini futures contract. it is liquid and easy to get in and out of quickly. penny stocks are . . . well let's just say good luck if you do it. they are down in the toilet for a reason.
|
|
quote |
|
TRAIN69 |
RSI  |
Legend
Joined: Oct 2002
Posts: 30189
Location: Missouri |
#12 Posted: 4/12/2011 11:53:54 PM |
|
quote |