Penny Stocks / Investing
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I tossed $5 in because I'm not going to cry if it busts, same entertainment value of a lotto ticket.
my coworker has told me to buy "real stock" and put upwards of 3k in... which knowing my luck I'd buy apple and it would drop to 50% of its current value.
i wouldn't confuse investing with fucking around with penny stocks. does technical analysis actually mean anything or is it the herd of the crowd thinking it does and fulfilling their own prophecy? some guys who are good at it do have good records - notably tim sykes who will teach you how to do it. in the past he used to do mostly shorts and would also pore through filings to find shitty companies that were destined to failure. a tough part about some of these rinky dink stocks finding 1. a broker who will trade them and 2. shares to locate when you do want to short. if you want to get serious about trading like this, tim is a good guy to follow. i have one friend who day trades using something he came up with who has had a pretty good 18-24 month run. tim himself has gone from something like 1000 to 1m now, i think twice.
imho the market in general is overvalued because of quantitative easing. it's bullshit, but bullshit can keep going until it doesn't. now if you could time that, you could really come out ahead. harder than ever to do now though - because the .com bubble and housing bubble had plenty to do with real things and people they could be reasonably timed - now there is so much federal reserve intervention in the market, who knows.
tesla itself has benefit doubley so from QE, both from a stock/market perspective as well as creating wealth effects (the intention of QE) for those that are in its target buying demographic. since the housing bubble collapse you can see stocks have made a stock holding class whole; people on the top in today's economy are feeling good again. people on the bottom are still fucked. tesla itself as valued as a technology company, even though what it really is is a car company, and one dependent on the physics of battery chemistry, which does not progress anything like technology. imho big money to be made on them falling over if you have the timing right. i hope to be in on that.
if you want to be safe just stick money in ETFs and leave it alone. i think you can speculate some industries will do better than others and park cash there. don't do anything self guided unless it's with your fuck around money. i have made big gains and big losses with the fuck around stuff. lots of little ones too. what is really frustrating is if your theory is right but the timing is off. note these were on bigger things than the penny stocks which i consider dice rolls (or worse) until you are at least semi-competent, else you are merely competing with a tim sykes. my stuff has been more based on things like natural gas should rise because of x theory and making a bet on it. i bet largish and infrequently these days. my last 2 non-trivial investments were both private equity in companies, one is a buddy's and the other is a bit more established alcohol detection system; it detets it through your skin. projections and use are all for commercial workspace but it's possible the technology may find its way into the start/stop button of your future car. it can identify who is in the seat too so you could potentially program it to not start the car if it's not you, or send you a text message if your kid has been drinking or is above a 0.04, etc.
lots of little things, after you get past the free trading, basically results in lots of fees you pay for your broker, plus annoyingly painful to do taxes. it is also kind of lame to put in the "time/work" and make... $10. what are you going to do, buy an extra burrito? time/tradeoff is much more valuable doing something like i have done with my blog, working banks and the credit card and points game. you can turn that into thousands of dollars worth of cash or travel. by now i think i might be able to charter my own jet at AA and i might be closing in on doing the same with united...
you should have more of a theory around just plopping some money into something. like you should have a theory of whether tesla is worth 50 bucks or 500 and decide from there if it's at 250 if you should buy. also a pain point to cut your losses and a sell point to take your profits. this is what someone disciplined would do, at least - i don't always practice what i preach. i have big volatile expensive bets in my account and i have stupidly not even really looked at them for 6 months. it will be an expensive day as most are losing but i think i'll log in now and push them out to the future some more and hope these theories eventually work out for me...
imho the market in general is overvalued because of quantitative easing. it's bullshit, but bullshit can keep going until it doesn't. now if you could time that, you could really come out ahead. harder than ever to do now though - because the .com bubble and housing bubble had plenty to do with real things and people they could be reasonably timed - now there is so much federal reserve intervention in the market, who knows.
tesla itself has benefit doubley so from QE, both from a stock/market perspective as well as creating wealth effects (the intention of QE) for those that are in its target buying demographic. since the housing bubble collapse you can see stocks have made a stock holding class whole; people on the top in today's economy are feeling good again. people on the bottom are still fucked. tesla itself as valued as a technology company, even though what it really is is a car company, and one dependent on the physics of battery chemistry, which does not progress anything like technology. imho big money to be made on them falling over if you have the timing right. i hope to be in on that.
if you want to be safe just stick money in ETFs and leave it alone. i think you can speculate some industries will do better than others and park cash there. don't do anything self guided unless it's with your fuck around money. i have made big gains and big losses with the fuck around stuff. lots of little ones too. what is really frustrating is if your theory is right but the timing is off. note these were on bigger things than the penny stocks which i consider dice rolls (or worse) until you are at least semi-competent, else you are merely competing with a tim sykes. my stuff has been more based on things like natural gas should rise because of x theory and making a bet on it. i bet largish and infrequently these days. my last 2 non-trivial investments were both private equity in companies, one is a buddy's and the other is a bit more established alcohol detection system; it detets it through your skin. projections and use are all for commercial workspace but it's possible the technology may find its way into the start/stop button of your future car. it can identify who is in the seat too so you could potentially program it to not start the car if it's not you, or send you a text message if your kid has been drinking or is above a 0.04, etc.
lots of little things, after you get past the free trading, basically results in lots of fees you pay for your broker, plus annoyingly painful to do taxes. it is also kind of lame to put in the "time/work" and make... $10. what are you going to do, buy an extra burrito? time/tradeoff is much more valuable doing something like i have done with my blog, working banks and the credit card and points game. you can turn that into thousands of dollars worth of cash or travel. by now i think i might be able to charter my own jet at AA and i might be closing in on doing the same with united...
you should have more of a theory around just plopping some money into something. like you should have a theory of whether tesla is worth 50 bucks or 500 and decide from there if it's at 250 if you should buy. also a pain point to cut your losses and a sell point to take your profits. this is what someone disciplined would do, at least - i don't always practice what i preach. i have big volatile expensive bets in my account and i have stupidly not even really looked at them for 6 months. it will be an expensive day as most are losing but i think i'll log in now and push them out to the future some more and hope these theories eventually work out for me...
well that was an interesting read. recently i looked into my 401k and realized that although it was doing quite well.. it was not diversified at all. i moved things around and feel alot better about it. being young enough to put your money in medium to high risk investments is a good thing, make sure your capitalizing on it. my 401k portfolio looked like an enron employees. not a good look.
Penny stock are all a crap shoot. They are valued at nothing for a reason. If you want to throw money onto a roulette wheel, go the casino or buy OTM options for pennies as well.
Also, S&P is up over 40% in the last 2 years. If you didn't make money trading stocks, you did something very wrong
Also, S&P is up over 40% in the last 2 years. If you didn't make money trading stocks, you did something very wrong
When I started investing at the beginning of this year I tossed a couple hundred into a few penny stocks relating to Marijuana. Thought process was that only one has to blow up for me to make it big. Had one, CBGI, that I bought at $0.08. About a month later it spiked at $0.48. I think I could have made $700 or so, but I wasn't paying attention and it fell almost as hard as it went up. Sucks for me, but lesson learned.
I did that with another marijuana company. Value didn't go as high as yours but I also didn't act as quick. A lot of those penny stocks will jump 200%+ then crash a day or two later so it's something you got to pay attention to.
To pay attention and also not be greedy when I see prices up and think they'll keep going. At least with a penny stock.
At work I keep my portfolio open and keep an eye on it all day. I enjoy just watching the way everything moves. Plus I like watching the value of GPRO go up and up. Almost at 100% gain on that.
The notion makes me chuckle somewhat. I'm not a seasoned investor or anything, but there are lists of penny pump and dump stocks. It seems as if there is a lack of regulation in the segment so it runs rampant with flat out fraudulent behavior. I'm not 100% on how it goes, but I seem to recall it working some way to the effect of this:
Create a company, or buy a bankrupt one. Supposedly some of these have been used multiple times in pump and dumps. It could also be a legit company they come in as "investors" for.
Sell the stock to another company for a penny a share or whatever low price.
Split the stock a bunch of times to increase the shares that the holding corp has.
Pump the stock. Mailer, web site whatever the person(s) doing to make it happen. Watch the timing here this is where you want to figure out if/when to short it.
People buy the stock off the mailers. At this point the stock goes from nothing to many times its original value.
The original investors sell and leave others holding the pieces.
Overall quite entertaining, but not sure if I'd want to get into that circus. Will be interested in hearing what others say about this.
Create a company, or buy a bankrupt one. Supposedly some of these have been used multiple times in pump and dumps. It could also be a legit company they come in as "investors" for.
Sell the stock to another company for a penny a share or whatever low price.
Split the stock a bunch of times to increase the shares that the holding corp has.
Pump the stock. Mailer, web site whatever the person(s) doing to make it happen. Watch the timing here this is where you want to figure out if/when to short it.
People buy the stock off the mailers. At this point the stock goes from nothing to many times its original value.
The original investors sell and leave others holding the pieces.
Overall quite entertaining, but not sure if I'd want to get into that circus. Will be interested in hearing what others say about this.
Might as well take your money, go to the casino, and put it all on a number in roulette. That's about the odds of doing anything with penny stocks, unless you have a little "inside information".
Penny stocks rank up there with hedge funds to me. Except you need to be a baller to get involved in hedge funds.
Penny stocks rank up there with hedge funds to me. Except you need to be a baller to get involved in hedge funds.
Question for you.
So I bought back into the stock that doubled my money and see a bid price and an ask price.
the bid price is fairly consistent and within reason.
The ask price goes from 10% above the bid price up to $200k
why. Wtf. So for shits and giggles I put to sell at 1k for a portion and 10k for a portion... is this some BS associated with penny stocks and hoping some poor guy buys at ask price?
sounds like it is illiquid/low volume. when you bid you put in a limit price ie. you'll pay up to x. if you notice when you place a trade you can also do market. this means whatever the market offers. depending on your platform you may have an all or nothing option ie. if you put in a buy for 10 but only 5 are available then it may do a partial fill of the 5 and keep the order open for another 5. or the other option is don't execute the transaction unless 10 are available.
this isn't going to happen with something heavily traded like apple, but with your low volume penny stock, maybe - maybe you intentionally (are) or carelessly (oops) open an order at market, partial fill... for 1000 shares for a stock bouncing between 9 and 10 cents. the only guy selling is selling them for $1; it happens since so few people are trading for this rinky dink stock. maybe you don't even have enough money in your account for full order, but allowed for partial fill (or maybe you do have enough for the full order) - then poof the transaction will occur and you will have purchased at the market rate, which unfortunately for you, was being offered at $1. can you go back to your broker and complain oops it was a mistake? i don't really think you can do anything. even if you were the guy that bought one share for 200k, i'm not sure if you'd have any recourse...
this isn't going to happen with something heavily traded like apple, but with your low volume penny stock, maybe - maybe you intentionally (are) or carelessly (oops) open an order at market, partial fill... for 1000 shares for a stock bouncing between 9 and 10 cents. the only guy selling is selling them for $1; it happens since so few people are trading for this rinky dink stock. maybe you don't even have enough money in your account for full order, but allowed for partial fill (or maybe you do have enough for the full order) - then poof the transaction will occur and you will have purchased at the market rate, which unfortunately for you, was being offered at $1. can you go back to your broker and complain oops it was a mistake? i don't really think you can do anything. even if you were the guy that bought one share for 200k, i'm not sure if you'd have any recourse...
i have not been gambling on the market much lately. i think i have some correct theories but a component of these is also timing as well. i am confident tesla will tank but you can lose lots of money betting against it when it is not. i actually used to hedge my 'tesla will tank' bet with 'but not this week' - which was working relatively well until the first or second one caught fire, then i had a lot of pain. the second bet i was making was more like the analogous 'picking up pennies in front of a steam roller' thing. steam roller very unlikely, although it came that week... i realized my losses and felt all the pain too, if i stood strong the steam roller would have actually stopped right in front of me and i would have been ok. oh well.
i think the market is very rigged from quantitative easing right now, it's going up but not for real reasons. i have taken my ball and gone home for the most part, i don't want to hold stuff long when shit falls, in the mean time i am missing out of gains though. my largest investments of late have been into a buddy's product company which i'll say is bouncing around sideways and then a very large investment in a company with a really cool biometric alcohol detection device. i have a pretty serious chunk of my change invested in it, and so far things are looking good. the risk of failure is still there but conservative estimates of gains are looking pretty solid. if this thing really knocks it out of the park i stand to make a serious chunk of cash, so hoping for the best on this one! will make me feel better about sitting on the sidelines as the market has crept up as well.
i think the market is very rigged from quantitative easing right now, it's going up but not for real reasons. i have taken my ball and gone home for the most part, i don't want to hold stuff long when shit falls, in the mean time i am missing out of gains though. my largest investments of late have been into a buddy's product company which i'll say is bouncing around sideways and then a very large investment in a company with a really cool biometric alcohol detection device. i have a pretty serious chunk of my change invested in it, and so far things are looking good. the risk of failure is still there but conservative estimates of gains are looking pretty solid. if this thing really knocks it out of the park i stand to make a serious chunk of cash, so hoping for the best on this one! will make me feel better about sitting on the sidelines as the market has crept up as well.
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