Tuesday, December 4, 2007

Powerful Trading Strategies for Penny Stocks

Hunting for Gold in The Pink Sheets

Welcome! Are you looking for a winning advantage in the high risk penny stocks game? I decided to buy every penny stock investing book I could get my hands on. I left trading stocks on the big board and needed an edge with the pennies.

I thought to myself, "there has got to be a low-risk technical method to beat the penny stocks!" I did not want to second guess myself before I pulled the trigger or made my exit in a trade. The pink sheets are risky and I needed an effective penny stock trading strategy. Something simple but extremely powerful!

I was a long term investor on the big board and started trading over 10 years ago. I never needed to use Japanese Candlesticks and I quickly learned without mastering the candlesticks, I was going to lose money fast trading penny stocks!

Fortunately, I found Japanese Candlestick Ninja Warrior Training! You will not find a better Candlestick training program than this! This ninja training game is acutally FUN! I love video games and what better way to learn than playing a game!

You will learn two things on this blog. First, you will learn how powerful Japanese Candlesticks really are and second, you will know how to find solid penny stocks in the pink sheets. ~ Mr. Penny

TIP: What does every successful trader possess? Answer: Discipline

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Most new penny stock investors will hold the stock too long and lose their money. I could go on and on about how people are throwing their hard-earned cash to other savvy investors (who know when to enter and exit). Take a look below at the warnings for trading stocks on the pink sheets. Be aware of your risks and be in the know!

WARNING: The Dirty Low Down on Penny Stocks & Pink Sheets!

USATODAY: Pink Sheets Scams May Give Investors Nightmares!

Naked short-selling, which has been much in the news of late, involves a fund selling stock that it doesn't own in expectation that the price will fall. By law the seller is supposed to "borrow" shares to cover its sales; otherwise the seller may fail to deliver the stock to the new owner. Naked short-selling is a great way to drive the price down, virtually guaranteeing a profit. Because of these and other scams, the SEC has devoted a large section of its Web site to warning investors away from penny stocks. Excerpt from the NYSun.com

The Candlestick Course Everyone's Talking About!!

There are bona fide investors in the penny stock sphere. After all, there are legitimate companies that are just getting started, and that raise money to promote a new product or sales technique. The allure, of course, is that tiny companies have great growth potential if their business model pans out. Excerpt from the NYSun.com

The penny stocks are ultra risky and you must have major control over your emotions. Keep this in mind, play the penny stock game only if you are in a position to lose your entire investment.

Never buy too many shares of any one stock (all in does not work in trading). Spread your money out between a few stocks, whether here, or anywhere for that matter. Always use limit orders. The only money used for this style of trading should be "extra" or "mad money" if you will. ~ karibbeankid.com

Japanese Candlesticks will work on penny stocks, but you must have adequate trading volume. Pay close attention to the volume! I am not talking about investing, I am talking about trading. You have to be quick because the penny stocks move fast. You have to be careful trading penny stocks and treat them like your handling a group of poisonous snakes.

Investigate Your Stock Picks Like a Detective

Visit StockLemon.com before trading your stock pick! Another site you will want to investigate your stock picks at is StockPatrol.com. You can never be too careful when trading companies on the pink sheets! If you get a stock tip, research it! If you get emails or faxes telling you to drop your money on the hottest penny stock, click the delete button! These are classic "pump and dump" schemes.

"If you can't get a full picture of what a company is doing, you should stay away from it," says Cromwell Coulson, CEO of PinkSheets.com.

The great thing about penny stocks is you don't have to start with thousands of dollars! You can start out with just $500! Can you make money in the pink sheets? Yes!!! You have to know your risks and not risk a lot! You should never risk money you need for bills! Period!

I realize the concern many traders have about penny stocks listed on the Pink Sheets that quickly drop 50%, %75 or more! The pinks have released a new classification system that helps traders sort out the companies with little or no information, leaving you with "only credible" companies with enough information to make smart investment decisions. The pinks are looking better all the time!

"For a fiery-hot stock like Google.com to double your money over the next 12 months, it would have to skyrocket from roughly $425 to over $850 a share. But a stock trading around $2 only has to go to $4..." ~ James Boric

I have $500 and I am clueless when it comes to reading stock charts! What do I do? Don't fret! Japanese Candlesticks may give YOU the technical edge of a master trader! The candles will help put you in the green most of the time. It improves your odds of winning!

Denise Richards & Pamela Anderson!

Let's watch and see what this amazing penny stock does for 2008 - Empire Film Group, Inc.(EFGU:OTC) engages in the finance, production, and distribution of films. "Blonde and Blonder" which is scheduled to be released in 2008. The film stars Pamela Anderson, Denise Richards and the Farley Brothers. Blonde and Blonder, is best described as Legally Blonde meets Dumb and Dumber, and follows the hilarious antics of Dee Twiddle (Anderson) and her equally blond-brained sidekick St. Dom (Richards) as they outrun a clutch of cops and criminals after being mistaken for killers-for-hire.

For all Empire Film Group investor relations needs, investors are asked to visit the Empire Film Group investor relations Hub at agoracom.com where they can post questions and receive answers within the same day, or simply review questions and answers posted by other investors. Go ahead and research this penny stock and tell me what you think.

Well, what if this movie does well and the penny stock goes way up! This may not be Denise Richards in "Wild Things" but it might be a wild stock ride to cashville! I am keeping my eye on this hot stock.

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I am a big movie buff and I know the potential of making money with films. If you love movies then investing in such companies as Empire Film Group, Inc. may be the chance of a lifetime!

• $5,000 invested in the Titanic returned $46,000
• $5,000 invested in My Big Fat Greek Wedding: $595,000
• $5,000 invested in The Blair Witch Project: $55,000,000+

Wow! Titanic, the biggest box office blockbuster of all time generated a mere fraction of the investor return posted by the smaller-budget films. Again, this takes some clever research and it is wise to understand technical analysis. Before investing in any stock paper trade first! Don't forget to study the historical charts!

Do Your Own Research or Be a Sitting Duck!

I will admit some of Peter Leeds information is not too bad, but you have to be careful. Peter Leeds is a penny stock picker and he will be the first to tell you, you need to do your own research. It is a sad fact that most people don't know where to find powerful pink sheets trading information.

Well, I am sure Peter Leeds has some great penny stock picks, but trusting Peter Leeds to pick your stocks for you, without doing your own research and technical analysis, makes you a sitting duck! Mastering Japanese Candlesticks gives you a tremendous edge over the other new traders, who don't know when to exit a trade. New penny stock traders will lose their money to the one who exits before they do! Can you successfully trade without mastering Japanese Candlesticks?

Paper trading is the best way to find out if you "really know" your Japanese Candlesticks! Someone can say it won't work on the pennies, but if you paper trade for one month and have big gains with small losses, then your on to something! If you listen to what other people say, you will never know if it works on the pennies. The smartest investment is in your education. If you educate yourself first with Japanese Candlesticks, Gary Witt, and StockFetcher, you will be amazed.

I dare you to paper trade some penny stocks for one month, after you master Japanese Candlesticks! Stop back to my blog and please leave a comment on your results. I would love to hear it!

Master Candlesticks Now!

One major downside to penny stock trading, is that most online brokers will not let you do a "stop loss" on a penny stock. This is where you need powerful money management skills. Friends, the name of the game is "Risk Management!" The one who has superior risk management skills, will be holding pretty girls in bikinis off the Florida Keys. Anyone for a little after dark scuba diving?

Trade Like a Pro with Candlestick Analysis

Japanese Candlestick analysis was never a hidden or secretive trading system. It was successfully used in Japan for hundreds of years. It has been only recently, about 25years ago, that it first made its way into the U.S. trading community. Until then, there just wasn't any interest from Western cultures to investigate the Candlestick Technique. Excerpt from candlestickforum.com

Why use Candlesticks?

1. To better time your entry and exits.
2. To understand the "Crowd Psychology" before the "indicators" do.
3. Candles give you confidence in your trading decisions.

Buy low and sell high is the mantra on Wall St. but most traders fail at this goal because they don't know how to find the low. Buy low and sell lower is what many investors have found to be the case in their trading. But it doesn't have to be that way! Once mastered, candlestick charting will provide the trader the ability to find stocks that are at a bottom or very near to it. ~ B.M. Davis

The Candlestick Course Everyone's Talking About!!

Click here for Japanese Candlestick Ninja training!

Not everyone has $3,000 or $5,000 to pay for a trading seminar! Not to mention, most new traders can not afford the monthly cost of expensive software. Using too many technical indicators may led to information overload and cloud your trading decisions. Bruce Lee once said "absorb what is useful and disregard that which is useless." Simplicity is a beautiful thing and so are the solid stocks on the pink sheets.

Focus On What Really Matters

I have read many different books on penny stock trading and have visted most of the penny stock forums and blogs. Everyone has to develop their own method and find out what works for them. I heard a saying once, "chance favors the prepared mind."

"He who is well prepared has won half the battle." ~ Japanese proverb

I narrowed everything I learned down to mastering Japanese Candlesticks, Checking the financials of a stock pick at PinkSheets.com, Gary Witt's Trade Like a Pro and using StockFetcher. You can spend a lot of time on indicators you don't need and jumping around the net reading penny stock sites, that leave you confused and broke! Absorb what is useful, get rid of what is useless. There is nothing better than a simple penny stock trading strategy.

Nine Simple Steps to get started:

1. Pink Sheets company backround - Read this!
2. Go and click around pinksheets.com
3. Visit agoracom.com (CEO interviews/press release information)
4. Re-wire your brain for change and write out your goals!
5. Master Japanese Candlesticks!
6. Use a powerful stock screener - StockFetcher.com rocks!
7. Paper trade the system before using any real money. Click here!
8. Keep a record of your performance (gains/losses) in a notebook.
9. Start small and see how it goes first!

The Candlestick Course Everyone's Talking About!!

IMPORTANT: Gary Witt's CD is outstanding! I would encourage anyone to learn from Gary! Click Here to learn more! I have learned more from Gary then any other trading resource online. He will change how you see penny stock charts forever!

The Ultimate Stock Screener

Ok, you have mastered the Japanese Candlesticks, but now what? You have to find 10 or more good solid penny stocks. Let's look at where you can start and there are some great stock screeners out there, but just starting out you don't want to amass monthly fees. Most costly stock screeners will not list the stocks on the pink sheets! Good news! StockFetcher does support many otcbb and pink sheet stocks!

When it comes to applying your Japanese Candlestick skills, I would strongly suggest using "StockFetcher." If you are looking for a specific short term candlestick chart pattern, there are about 40 pre-built candlestick pattern searches which you can select. Would that give you an edge? Imagine being able to find penny stocks in the blink of an eye, that may bring you percentage gains of 25%, 100%, 300% or more in pure profit!

REMEMBER: What do you do if there is no company information and no financials? Find another penny stock! Until you become skilled at researching the backrounds of companies, hold off. The Pink Sheets site gives you plenty of red flags, so heed their warnings!

Here Are Some Extra Tips

TIP: Buy Ted Tesser's "Cut Your Trading Taxes in Half" at Amazon.com.

TIP: Stop-Loss Order - This is good to know!

TIP: How to Buy or Sell Pink Sheet Stocks by PinkSheets.com.

TIP: Where to find the best online brokers.

Watch out for DILUTED penny stocks! Make sure you check and see if the penny stock is diluted before you buy! A broader definition specifies dilution as any event that reduces an investor's stock price below the initial purchase price. A pro trader of penny stocks will keep his eye out for this. Click here to learn more about diluted stocks!

TIP: READ THIS! Jason Hommel - How to Find Stock Dilution.

"If your ready to say good-bye to the corporate rat race, then trading penny stocks may be for you. ~ Mr. Penny

This blog is set up for those that are new to penny stocks. I have covered the very basics of penny stocks and pink sheets on this blog and I hope that it will lead you in the right direction. Please be courteous to other bloggers who comment and feel free to share your experiences.

I wish you great success,

Mr. Penny

"Fall seven times, get up eight." ~ Japanese proverb

CAUTION: Don't invest more than you can lose. Pick a reasonable amount as your risk premium. Use an up to date trading plan. Find companies that you can research and you will do extremely well. If you can not find any filings on the company, move on to a different penny stock. I look at penny stocks for trading and not long term investing. Never forget - this is super high risk trading! It is possible to lose your shirt and underwear! You've been warned!

DISCLAIMER: This Penny Stocks and Pink Sheets blog is for educational purposes only and is not intended to provide financial advice. As with any business, your results may vary, and will be based on your background, dedication, competency, desire and motivation. This blog makes no guarantees regarding the level of success you may experience.