Anyone here trade penny stocks?
 

I trade quite a bit and figured it could benefeit us all who trade to have a topic where we could share picks and upcoming picks. Help each other add to our watch lists.

I have for about the last year, started with $500 just to play with .... I'm up to about $2500 right now.

The big hitter for me was "HEMP" back before the legalized pot in a few states, after the laws passed the stock went from like $.027 to $.39 really fast. I got out at like $.35/share.

I trade TVIX quite often. Watching RADA now. Tvix is pretty predictable. I've done well! ECIG just took off a week or toe ago after dropping quite a bit.

No pennies for me. I like the idea of posting up what we're looking to buy or have bought.

glad I bought buffalo wild wings on Oct 23...

What software do you use to do your trading?

picked up 500 shares of $FB today....75.50, sold @ 76.50 for +$500.

been playing $UGAZ/DGAZ and $SCO/$UCO lately. lost abt $2k on $SCO in under 5 min a few wks ago......came back HUGE sold yesterday at $88...holding 800 shares from 76 fr abt 3 weeks ago.

$UVXY/SVXY is a fun one too.

my $TWTR ( june 2015 40)call options are looking good....shud hit $40 by the end of the week. 10 calls @ 3.80 holding for $6.

best day trading broker is interactive brokers IMO. TC 2000 is the best platform.
I use scottrade ELITE Pro. garbage, lol.

also like/own 800 shares $VNRBP @ 23 avg. and 800 Shares $EPD 37 avg., down quite a bit on the share price on both. but dividends are good/great. VNRBP is paid monthly ...$130, and EPD quarterly....$290 ish. I'll sell $EPD at $40. Looking for breakeven @ 23 on $VNRBP....prolly in 2-5 years, lol.

im running TC2000

i'm up about 10% on LMT, trying to decide if I want to sell calls or dump the stock. had it since 10/2/14
sold XLU a few weeks ago, sold RAI 10/29.

Tomorrow will be a significant day IMO.

buying $UGAZ premkt @ $3.6 2k shares...looking to sell $3.9. shorts should cover into the report today. stop set at $3.5

you should get a bounce out of yesterdays move. I like it

selling here ...out $UGAZ 3.73. +$260. dont' have the balls to hold thru report....still very bearish on Nat gas. Price action is crazy around report.

what report, inventories? Yea, nat gas is crazy. especially lately

buying 6 month at the money calls on XLE, just not sure when to time it. falling knives, both of them

@ nacho yep, inventories.

I like $XLE long here...have for a while . but still no bottom in oil ( like u said) . $USO is a good oil play. I predict crude ( WTI) to hover under $60 for the next 12-18 months. good companies will adjust their cost models and remain profitable.

I can only understand half of what you guys are saying, but I'm intrigued. What's the best way to get into buying and selling penny stocks? Sounds fun!

UGAZ hit your 3.90! I know, takes some stones to hold those triples, especially ahead of a news release

Dave, not sure about them. My system (TC2000) doesn't pull up a lot of them. The misnomer is that penny stocks (anything less than $5) is cheap. When its actually earnings per share and P/E that determine a company's valuation. be careful with them.

@ David don't trade penny stocks...lol. Way too much risk IMO, and easily manipulated. I don't touch anything under $2 (usually).

My advice.....open a trading account and paper trade (using play money) for a while. get a trading style and stick with it. I trade a lot on technicals....and if I'm daytrading a lot ,use a lot of money management techniques....averaging into and out of a trade.

it's insane how fast you can make/lose money......

@ nacho....yep...saw that.

hardest part of trading for me is patientce...and following my trade plan.

nat gas/oil is so beat down.....$UGAZ/$UWTI will typically run up into their respective inventory reports ( shorts covering ) been fairly easy money. I also like them on Friday's.....shorts usually cover into the weekends not wanting to hold these 3x etf's over the weekend.

What he said. Penny stocks can be rewarding but can also drain you quickly. I use Esignal to watch my watch lists. Do research on companies you are interested in investing in. Look at their financial history, etc. volume can be another way to easily spot a phony company. If there's hardly any volume, most of the time it's not the real deal. There are hundreds of different techniques or methods to trading. Play with different ones and see what suits you best. Some people swing trade, meaning they might hold the stock for as little as a minute, try to predict a small swing up, and get out of it. Some people try and hold a stock and ride it up to get the most out of it. Always remember nothing is guaranteed in the stock market.

Watch ECIG, I'm telling you. It's going to take off any day! RADA is as well. It's a military radar company. Just got a contract with the USA for like 140 million.

What trading platforms/accounts do y'all use?

ECIG (electronic cigarette) is about to open another company as well they will be under the symbol KGRI which is a IP security company who has gone from 0 to over a mil in revs the past 6 months know someone who spoke with the owner directly. he expects growth upwards of 50 mil.

$RADA.. that's a seasoned day trader stock. Fun to trade when volume pours in.

also need to understand the pattern day trade rules. I forget them exactly...I know you have to have $25k min equity in your trading account if you get labeled. I am.

good "play" for non daytraders...overnite swing play. backtested...works abt 80/85% of the time. find stocks that are trading 10X avg daily volume, that are at or near the high of the day at close. buy right before close....sell pre market or at open. abt half the time I sell after hours.....

made $1k in 8 min on a$6k investment using this method. fastest I've ever made money:)

selling $TWTR calls here @$5 for + $1200. Booking tkts to cabo now, lol

Adam, sound like we have a similar style.

Also looking at EEM, nice support here

platform: I use Fidelity to trade, TC2000 to research and screen

also, pennies trade OTC or pink sheet exchanges. not subject to the same regulatory rules as typical stocks

Great thread so far! Glad I started it!

watching $BIND for possible daytrade today.

bidding $FB 77.80...500 shares

filled....selling @ $78

selling @ breakeven...mkt tanking. out $77.82

filled again... $FB $77.65

out 77.75 , 500 shares. + $50

buying 50 SPY FEb $205's calls here 3.92...looking to go thru 4.

selling 3.97..boom. + 200 ( after fees)

not bad. Gaps on BIND and SPY so I would expect them to fill those at some point, both against your trades.

Not sure where I'm going from here. Do you see a converging triangle on a lot of charts? all the X etfs have gapped up and have the closing triangle formation. makes me nervous

I really have no idea what you guys are talking about half the time, but I'm so enjoying this thread!! I guess I like watching people make money.

@nacho....agreed the gaps will fill. I was only watching $BIND b/c of yesterdays volume. I'm a long term bull on the $SPY. I'm always holding a core position long ( I own the $VOO---it's cheaper to own), but take gains when I can and rebuy on dips.

I'm watching $FB for another pullback before ER and $BABA.

was going to sell Jan 17 205 calls off of LMT, but no premium for Jan and not enough strikes in Feb. So I'll wait. Any idea why so few strikes and expirations?

Thankfully we closed higher than Thursday's open.

Couple charts of wedges or triangles.
XLK
[IMG]https://farm9.staticflickr.com/8594/...f8f3637d_o.jpgxlk 1.9.15 by denverd180, on Flickr[/IMG]

XLB
[IMG]https://farm8.staticflickr.com/7518/...c522b61a_o.jpgXLB 1.9.15 by denverd180, on Flickr[/IMG]
My concern with those two (and a few others with similar charts) is we come to a point where they break out of the triangle, likely to the downside as were coming off of 5+ years of bull market.

Below: The only one I like at the moment. top line still has a positive slope more likely to continue the uptrend than the top two. XLF
[IMG]https://farm8.staticflickr.com/7498/...48812d7f_o.jpgXLF 1.9.15 by denverd180, on Flickr[/IMG]
May have to do some digging for individual companies in a few sectors.

finally, main screen I use most frequently. 3 moving averages and a couple more indicators. red box = gap it will likely fill in the next week
[IMG]https://farm8.staticflickr.com/7469/...b3259ce3_o.jpgspy by denverd180, on Flickr[/IMG]

happy trading

@ Nacho, I see some of those same patterns...but would need breaks up/down for confirmation.

as far as options...it's all supply/demand and what the market makers are willing to write.....if they can't make money they wont' write the options. I dont' play a whole lot of options.

watching $ADHD today looking for entry around $5.20-5.30.....play up to 5.85-6. Bollinger band break ( on the daily). pure technical play......might end up being a swing trade.

just got it.....1k shares at $5.30

stop at $5.50.....locking +$200

stopped out @ $5.50. watching $FB today too.

Funny, this thread made me check a penny stock I had bought in 2008. SOPW (solar power inc)

Bought at $1.11, dropped to .05, figured it as a loss but kept it in my portfolio for 5 years. Checked it today, it ran up to $2,80! Wow,, thats a 56x increase from its low in summer of 2013, needless to say I sold which was nice considering I figured it as a loss!

will be watching $TKMR for short opportunity tomorrow/this week. Hoping it gets pushed to $30.

took another beat down on my oil/gas holdings today. was hoping for bottom when brent hit $50......not so much.

TWTR looks like its turning.
Looking at CLF and some healthcare stocks

I own 200 shares of $TWTR @ $42 avg. Not sure what I'm going to do with it.

the $42 Feb call gets you.$50/share. 1.2%

Not happy AT ALL with today's action so far. closed out the gaps and turned south at 1pm EST.
[IMG]https://farm8.staticflickr.com/7465/...2a9ab199_o.jpgspy 15min 1.13.15 by denverd180, on Flickr[/IMG]

What do you guys think of Gopro right now? Took a beating today, the Jan 17 $50 call looks hot at $1.76.

$GPRO Not a bad swing from $50 to $55 ish...it's way oversold.....but long term, I'm not so sure. they have to be able to monitze their media content. To early to tell on this one.

feb lockup expire...millions of shares potentially dumped on open mkt. One of the reasons $GPRO rocketed up is b/c of the small share float and HUGE percentage held short......IMO it was one big short squeeze from $60 up to $90.

BUT....price targets I've seen range from $40-80, lol.

Jan 17 call - up 60% today :)

picked up some $BABA today...starter position 25 shares @ $99.50. Adding to my longer term hold.

Holy ****, bought Gopro jan 23 $61 call for .35 yesterday, at 1.20 right now. 421% gain :)

@ boarder85...should be a lot of short covering today. I'd sell those options, if you can.

Be careful abt buying those non standard options like that. very illiquid…you can get hosed on those. Market makers prey on that stuff. When I pick strikes ( if I’m buying options) I will only play the standard ( 3rd week) and strikes that have high open interest and good volume.

Your option contract has very low volume……look a the bid/ask ….

sold 5 $EPD $30 feb puts. really weird option activity on those??? Sold @ $1....banking $500 premium....

adding 25 shares on $VOO if it hits $182.50

Yeah, I just picked an option out of the money at open and played it out. i have an order to close, but no volume. We'll see if it goes. I have a the rest of the week to get out of it, I don't have much into it.

If open interest is significantly higher than volume on an option, what exactly is that telling me?

Open interest will tell you the total number of option contracts that are currently open...the higher, typically the more liquid.
Volume.....is the number of contracts traded.....no volume....not liquid ( and easily manipulated) . and means you'll have a very hard time selling your option.

Adam-What are your intentions with VOO? Long term or short term?

@ Nick...I add to the $VOO on dips/sell near previous highs.....everyone in the market is trying to beat the S&P 500....my thought is you should always own the benchmark. the $VOO is cheaper to won than the $SPY and the dividends are good too.

usually holding 25-100 shares at all times....100 is my max share size.

but answer your Q...I hold the S&P 500 ( $VOO) long term.

$VOO order hit...getting ugly.....$SPY is down on relatively low volume.....could reverse end of day....if not ....ugly day tomm.

Crazy chart on EPD altogether! love put selling at support levels like that.

thinking about purchasing crude oil (NYMEX). checkout the previous 6 months of this stock, looks like a good time to buy. what do you guys think

$VOO....big volume/support @ the 150 day MA ( $182.50). see if it holds.

@ Nacho...$EPD is getting beat up right now. IMO one of the best Midstream MLP's out there.

@ Mike.. crude futures?

crude has not found a bottom yet.....but a thee levels "starting" a long position wud be ok IMO ( we're at historic lows) but be prepared for more pain. the problem with ETF's that follow crude ( using futures) is the contango eats into profits and roll yield. and buying Futures is very capital intensive.

If I wasn't already in a lot of Oil and gas, I would be buy into good MLP's with nice dividends....that move directly with oil. ITs the best/cheapest way to play oil.

If you've got HUGE nuts......buy $UWTI...but fully understand risk of 3x leveraged ETF's.

all ETF's that use futures to index their underlying commodity eventually go to zero ( they reverse split before 0) .....they should be illegal, lol....it's worse on the 3x leveraged.

@ Mike....when the contango isn't as high and we move toward normal backwardation in crude futures....I'll be buying $UWTI for day trades/swing trades.

I've got an error channel that the SPY has stayed within (for the most part) since 2009. support level 198 on SPY, looks like about the same level on VOO. 10-13-14 to 10-20-14 it traded below the support but quickly got back into the channel by 10-21. I use the 200 day MA quite a bit and its at 196 on SPY. if it breaks through there, i'm buying July puts on the index at the money

@ Nacho.....agreed...if the $VOO/SPY breaks the 200...look out below.

$SPY...ripping end of day....up $1.75 on the $VOO call earlier.


my $BABA call is lookin good too.

holding $$$ for $FB...stilling bidding @ $75.75 for a run into ER.

Nice!! nice compelling intraday MACD cross

shorting $BBRY afterhours.....500 shares now @ 12.75 another 500 tomorrow if/ when shorts cover in the morning ( cud pop). taking this pig down to $10. More B.S. buyout rumors that will never happen ( or get approval)

@ Nacho ...$SPY cud fill that gap tomorrow.

lol... , i'll cover now....11...lol BOOOOOM. $825 15 minutes:)

oops...$875:)

@ Nacho.....what's the best way to short Nat Gas into the summer?

All those ETF's erode due to contango/roll cost.

I'm very confident.....Nat gas goes under $2 this summer.
Was thinkg about buying puts on $ENCA/$CHK...their charts look similar to $UNG.

buy order triggered on $FB...50 shares @ 75.75...looking to hold up until ER.

$FB March $80 calls wud be a good earnings play.
$BABA March $110's another good one thru earnings.

I'm long on both going into earnings now...but any big dip I may double down using those.

Holding 25 % cash now.