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Newsletter Mailout/Posting Dates: 15th and last day of every month.

Penny Trading Tactics

 

TACTICAL SYSTEM 3-F
  1. Your message board sites are your most important resources, and of course the email addresses previously mentioned. This is how you will find your ticker(stock) symbols, information on companies and input from other investors. We look for the most talked about stocks. You have to find out what stocks people are talking about(every day, You have to stay on top of it), what their interested in. Those are the stocks you have to write down on a pad of paper. Before the bell, toggle between your message boards and see what’s new, (news, anything). Many times, news will come at the very opening or even before. You have to be able to find that information. SILICONINVESTOR.COM and the RAGING BULL are great places to go to find that information. YAHOO also. Please note: When you find a pennystock that you think is going to sky rocket the next day, don’t be fooled by placing a buy order as soon as the market opens, because a lot of activity goes on right when the stock market opens. Stock trade execution takes time too, especially if it’s a large buy order. Let the stock do its thing, wait…Let it rise enormously! The stock will hit a Pennystock Hit Point, and it will drop down up to 80% usually, caused by selling for quick profits from the daytraders!! Once the selling slows down, and the price roughly stops dropping, that is when the buying (you) starts for the big (main run-up). But you’ve got to follow get a current stock quote every few seconds to take advantage of the play. With stocks like this, the run-up, if any, will happen usually between 9:30 – 10:00 AM and 3:30 – 4:00PM (NYT). Also note, usually mid-day around 12:00, you will usually see a price drop in the stock, but don’t fret. If the stock had the pre run-up, and the big run-up, there’s a near definite chance that that stock will run up at the end of the trading day, just before the stock market closes. It’s all about timing and buying in the dips.

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  2. Once you make a list of the most talked about stocks (changes day by day), you want to narrow that list down to the most talked about stock. News, Information. What ticker (stock symbol) do you see the most of when you go to those message boards or (Pennystock Websites) Once you find that special Pennystock, you have to focus on that stock only, forget everything else. Watch the stock. Don’t be anxious. ANXIOUSNESS IS A DOWNFALL! Be patient. Let the stock roll from all of the activity. BUY THE STOCK IN THE LUL. "In the Dip". Find out where the stock stops when it drops. Buy at the bottom. A stock may look like the price will stay at that high level, from all of the activity, BUT IT WILL DROP. You have to know that! IT’S PENNYSTOCK NATURE!

**** AN H.I.R. WINNING TECHNIQUE ****

You find the top 5 roughly most talked about Pennystocks using the Pennystock Message Boards Mentioned mentioned in the information packet. Take a set amount of money ($1,000, $2000…), and then divide up the money in to the 5 designated stock picks. So, let’s say you have a $1,000. Well, divide the money up evenly between your 5 picks. You’ll buy $200 worth of shares with each of your picks. Then that’s when you start following them. Usually, over a 2 week time period 2-3 out of those stocks will rise dramatically in price due to public awareness, news, or volume.

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PENNYSTOCK DEFINITIONS

 

There are two prices when purchasing a stock. Sell – Bid, Buy-Ask(Market) When you buy a stock, you buy at the ask(market price) which is a higher price than the bid. So, as soon as you buy the stock, if you wanted to sell it immediately after you have bought it, you would sell at the current bid, which is lower than the ask. In order for you to make money at all, the bid price has to surpass(rise above) the initial ask price you bought it at. THE BID HAS TO EXCEED THE ASK IN ORDER FOR YOU TO MAKE MONEY!

 

BEFORE THE PLAY.

.02 – ASK (YOU BUY)

.018 – BID (initial sell price)

 

AFTER THE PLAY (You make a profit) J

 

CURRENT ASK - .03

SELL PRICE (BID) -.027

 

MARKET MAKERS (Price Adjusters)

Investment firms who manipulate the price of a stock. As long as you follow the manipulators (Market Makers) with the most talked about stocks, you’ll be in good hands. If you buy in the lull, in the DIPS. EVALUATE, ASSES, MAKE A GOOD DECISION!!! Follow the price adjusters (Market Makers) No matter what it takes!!!

 

 

THE ROLLING STOCK

A stock that fluctuates between two prices consistently

EX. – NSKY

.02 - .028

PRWT – Another One

 

 

PUMP ‘N’ DUMP

A stock that is hyped (said to be more than its worth) Overly talked about!!! A stock that’s priced is pumped up to high levels with no substance backing it up. A price play by the MMs (MARKET MAKERS) If you can get in before the big rise (really high levels) and get out in time by placing a sell order when it hits your target price. Place the sell order when you buy the stock.

 

 

 

BOUNCER

A stock that has is reaching it’s 52wk low of the year. Once the stock does bottom out, buy in, even if there is little to no volume. Pennystock Nature will bounce the stock back up. Easy double, triple.

 

CLASSIC PRICE JUMP - DROP

When a company releases information that a positive press release will be out, there will most likely be an immediate price jump, because of all the buying going on. Wait, let the stock do its thing. Let it cool down. Wait a couple of days, then buy in. The stock will not stay up, it will go down. BUY IN THE DIPS - ALWAYS!!!!

 

 

 

Let’s say you choose NSKY! We made money on NSKY! Pull a RealTime quote up and a chart. Look at the price. Let’s say you pull up NSKY (ask - .02 bid-.018. NSKY IS A ROLLER(Price Fluctuates Consistently) You hear that a Press Release will be out either today or tomorrow. Knowing the history of NSKY, people anticipate that it will be an excellent press release. There will be a surge of buying going, most likely driving the stock price up. (Buy at .02 ask, press release hits, sell at a bid price of .03)

 

 

WE LOOK FOR STOCKS THAT ARE BETWEEN .01 AND .10 A SHARE. HOWEVER, WE WILL INVEST IN ANY STOCK THAT IS LESS THAN .50 PER SHARE, IF WE FEEL SAFE. Most of the time, we trade hundreds of thousands of shares in Pennystocks that have a value of .01 and .10

 

BEST PROFIT POTENTIAL IS BETWEEN .01 AND .10 PER SHARE!

 

A stock goes from .02 to .10 Common Occurrence

 

A stock goes from .05 .30 - Common Occurrence

 

It happens all the time

 

Make 4 to 5 times your money in one stock. That’s a return. You can do it all in one day!

 

 

 

 

 

 

 

 

 

 

 

 

 

When your starting to trade pennystocks, it’s best to buy the stock one day, and sell it the next. You do your own research, you buy in, and you sell once the stock jumps.

 

When you daytrade ( buy and sell stocks the same day), you really need a margin account with a broker. (A margin account gives you more buying power, more room to work. Whatever you have for funds in your account, you buying power is doubled) So if you have $2000 in your account, you have $4,000 of buying power. But be careful, it’s borrowed money from your broker.

 

You can Daytrade without a margin account, you just need to have enough funds in your account to cover your trades. If you bought $500 worth of stock, you should have another $500 in funds, just in case. You don’t want a restriction on your account.

 

Starting off, we at H.I.R. recommend you buy stock one day, sell it the next. That way you get more practice. You will be able to build strength. Yes, you may take losses initially, but keep at it, and you will become impenetrable. You just need motivation.

 

 

TRADING METHODS

1. The Announcement Buying Surge - Can be Deadly

Company Announcements of a Press Release

 

In the Pennystock Market, situations can get pretty tricky. Pennystocks (in general) react with news. When a company announces that a Positive PRESS RELEASE will be out, there will probably be a surge of buying going on right after the announcement, driving the stock price up. People make mistakes and buy right after the announcement is made, thinking the stock won't go back down to its original trading range, when most of the time it does, due to the wait time that is involved (on the other hand, stocks that have been in the public eye for an extended period of time, may stay at a high price, and go even higher, depending on the type of company, news, etc..). The stock market reacts on the moods of investors, Buying, Selling, Holding! Let the stock cool down, and then pick it up, and then when the Press Release hits, or when that BIG DEAL goes through, you're ready for a profit.

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  1. Bouncing off the Bottom Effect - Pennystock Nature

 

When news is released, a pennystock can act in a number of ways. One of the more interesting types of reactions that we like is what you call the Bottom Bounce Effect. When news does come out on a stock that is already NEAR its low, it could rise, if the news is positive. The stock usually hits a peak, and then, depending on the moods of investors and the market itself, the stock could hit its low of the year; that is when you pick the stock up. At or just below the low. Pennystocks usually don't go straight down to nothing and stay down, when positive news comes. It's just a reaction, a Dip. Once the stock bottoms out, there's a very good chance the stock will go back UP to its INITIAL trading range. EASY DOUBLE, TRIPLE, MAYBE EVEN MORE!!! All by looking for upward swings on a 52 wk chart

 

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ALWAYS REMEMBER TO BUY AT THE BOTTOM, SELL AT THE PEAK. Commit yourself. Look at charts, read message boards, make good decisions!

 

Use Due Diligence!

 

 

H.I.R. Investments