This is a sad story for me but better for others. 4 of us started to play Penny Stocks for fun. I found a Penny Stock at .0008 so I openned a information on ETRADE. Come to find out that I couldn't buy Penny Stock for 7 Bussiness days.To make a long story short this stock go from .0008 to .013 in a event of 2 days. At $1000.00 I lost out and they are rolling in the bread. We've heard through ETRADE and Fidelity they MAY annouce a Reverse Split on Wed. of this week. How will that effect this stock will culture bail ? Price drop? or cause empire to invest more.Should I buy Monday or wait until after reverse split? Its a small one 20-1? Please comfort me I will give you the ticker symbol so you can research. I'm so confused .Really want to cram as much as I can about marketplace! Really exciting, well for them they are merely over whelmed!! They say the other 3 Buy IN I say-so stay out what do I do?
Answers: Reverse splits are usually an indication of things getting worse.
You failed to mention the volume this stock trades day by day. Is it liquid? I wouldn't trade a stock beside less than 400,000 on a daily basis shares traded on a stock more than $5. I'd look for considerably more before even entering this trade.
Your approach to trading penny stocks sounds more resembling gambling than trading.
You should read some straightforward books on trading. After that move up to;
Trading In The Zone, Mark Douglas
Mastering The trade, John Carter
(I read a new trading book every 8 weeks or less).
Here's some net sites to learn more (although they may be more advanced for you, right now);
http://www.alphatrends.net/
http://www.tradingwithtk.com/
http://www.thekirkreport.com/
http://www.optionaddict.net/
http://www.slopeofhope.com/
BTW: Always own an exit plan before you run a position.
You might want to know that the typical biggest mistake of new investors is to trade penny stocks. #2 mistake is taking tips from TV, radio, friends, relatives, the pattern & strangers.
that means that for every 20 shares you own you will get hold of 1.
this means the price should shift up accordingly. another words if you own a 100 shares to start out with at read aloud .01 a piece you will end up near 5 at .20 a piece. as you see 100(a).01= 1.00
as does 5(a).20= 1.00. the price went up but the number of shares you own go down.
Reverse splits are hazarous for your health. Research the stock and consequently decide what to do. The Split should not really effect the stock price. The total stated means will remain the same. The merely difference is the stock will be trading (a) .20/share rather than .01/share. the holders of share formerly the split will see there number of shares drop by a factor of 20. I've see this a lot of times beside penny stocks. It's a way that the promoters get the stock look like it's moving more than it really is. They enjoy a stock that is around 0.01 or smaller amount. The promoter receives a couple 100 thousand shares of the stock for consulting services. The promoter after starts talking up the stock and recommend other ways to make the shares appear more interesting. After the split the stock usually simply drops back down to the call attention to value of the company.
I agree beside you and recommend you stay out.
BTW, Does there appear to be ANY root for the jump surrounded by price ? New report, announcements ? If not this may be a pump and jump undertaking. Watch out.
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Answers: Reverse splits are usually an indication of things getting worse.
You failed to mention the volume this stock trades day by day. Is it liquid? I wouldn't trade a stock beside less than 400,000 on a daily basis shares traded on a stock more than $5. I'd look for considerably more before even entering this trade.
Your approach to trading penny stocks sounds more resembling gambling than trading.
You should read some straightforward books on trading. After that move up to;
Trading In The Zone, Mark Douglas
Mastering The trade, John Carter
(I read a new trading book every 8 weeks or less).
Here's some net sites to learn more (although they may be more advanced for you, right now);
http://www.alphatrends.net/
http://www.tradingwithtk.com/
http://www.thekirkreport.com/
http://www.optionaddict.net/
http://www.slopeofhope.com/
BTW: Always own an exit plan before you run a position.
You might want to know that the typical biggest mistake of new investors is to trade penny stocks. #2 mistake is taking tips from TV, radio, friends, relatives, the pattern & strangers.
that means that for every 20 shares you own you will get hold of 1.
this means the price should shift up accordingly. another words if you own a 100 shares to start out with at read aloud .01 a piece you will end up near 5 at .20 a piece. as you see 100(a).01= 1.00
as does 5(a).20= 1.00. the price went up but the number of shares you own go down.
Investing £10,000, guidance appreciated?
Reverse splits are hazarous for your health. Research the stock and consequently decide what to do. The Split should not really effect the stock price. The total stated means will remain the same. The merely difference is the stock will be trading (a) .20/share rather than .01/share. the holders of share formerly the split will see there number of shares drop by a factor of 20. I've see this a lot of times beside penny stocks. It's a way that the promoters get the stock look like it's moving more than it really is. They enjoy a stock that is around 0.01 or smaller amount. The promoter receives a couple 100 thousand shares of the stock for consulting services. The promoter after starts talking up the stock and recommend other ways to make the shares appear more interesting. After the split the stock usually simply drops back down to the call attention to value of the company.
I agree beside you and recommend you stay out.
BTW, Does there appear to be ANY root for the jump surrounded by price ? New report, announcements ? If not this may be a pump and jump undertaking. Watch out.
Resolved Questions: