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There are not 25,000 OTC and PS companies there is maybe 6,000 and they are not OTCQX, OTCQB, OTCBB and PS listed companies.
Penny Stocks Behind The Scenes: Beat The Promoters At Their Own Game & Profit
- Thread starter dr0832
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dr0832
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I find stocks with a specific catalyst which typically cause significant volatility in these type of stocks. Once I identify these stocks through stock scanners with custom filters or other methods such as following the stock promoters, I then plug them into the proprietary technical trading system that I learned from the trading guide at beatstockpromoters.com. The system is a group of custom technical indicators that are setup up with non standard settings. When the majority of these technical indicators all give the same reading, I know that a stock is primed to make a specific movement that it has historically done in the past. In 10 seconds I can look at a stock and tell where it is trading in its entire spectrum of price movements. For this reason I can determine when a stock is over extended and due to reverse, or whether it is primed to make a move up or down. I have found that when the price patterns I look for occur they typically play out as expected 75% of the time. By using proper position sizing and money management I am able to make sure that I maximize the money earned on the 75% of profitable trades, and I cut my losses fast on 25% of losing trades. Statistically this allows me to earn a profit even though I am not right all of the time. Based on the trading system I have several specific setups that I look for. I just wait for these patterns to form, and the rest of the time I sit with my money in all cash. A big part of being consistently profitable is having a strategy that you follow no matter what. There's no way to make money in the market consistently in the shorter term if you don't have a specific set of rules that you follow no matter what. Emotions like fear and greed prevent people that use discretionary methods of trading from being able to generate sizable returns. This is a basic overview of what I do.
dr0832
New member
Its impossible to make that kind of money in the penny stock market. Its too illiquid to be able to get in an out of massive positions like you can in liquid stocks like AAPL or GOOG. Unfortunately in liquid stocks you compete with hedge funds and high frequency traders which have a lot more money than you and can therefore withstand larger draw downs and its just not possible to compete. I earn enough money to not have to worry about joining the real world and getting a 9-5 job. If you are setup correctly with the proper brokers, a specific amount of capital, the correct computers with enough monitors, the correct software, a technical trading system with a positive expectancy, and a rule based strategy, you can pretty much make as much money as your capital will permit you to within reason. I'd say the cap would be around several million a year in penny stocks if you have a larger amount of capital to work with. Successful trading requires taking a position that is relative to the amount of total capital that you have. The fraction of capital is usually no more than about %15-20 of your capital per position risking only a small amount of about 1-3% of the 15-20%. When you start with less these percentages must increase a lot. This is called money management and position sizing and I use it because it limits my chance of sticking all my money into on single trade that turns out to be a loser, and losing everything. So if you have $5000 total your gonna be able to make about $1000-1500 per trade x 3 high probability trades per month. If you have $50k you can probably make about $4000-5000 per trade x 3 trades per month. If you have $100k or more you can make a lot of money. The returns in penny stocks are much greater than anything else besides options or trading on ultra high leverage in assets like Forex (500:1), however these returns come at a much higher risk level. Fortunately if you have a strategy for picking the right stocks to trade at the right times and avoid everything else you lower the risk tremendously, but still maintain the high potential returns. I hope this gives an idea. Just a heads up I did not put the link to the website for chemical needs, I think Elite did this automatically.
I was doing this but I have not read this ebook you're talking about, sounds interesting. Instead of trading 2-3 times a month like you have said. I was trading everyday. Placing the same amount of money it looks like. I took my account from $23,500, to $132,000 in the my first 3 months. But I'm young and at the age of 21 at the time I cashed a lot of my main margin out and spent all of it on "useless" things now that I look back. I also lived off it for a year without working. Now I'm just saving up some money working a full time job, till I can start trading again, and do that full time.
Oh yes of course you did, well atleast you didn't say you were some damn daytrader millionaire.
A trade only takes an hour out of your day. Leaves you with the rest of the day to do nothing
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