Penny Stocks

Hello, my name is Desmond Clark, I play professional football with the Chicago bears. I'm kinda new to this. I was looking for some feedback for a few of the penny stocks I have. I'm trying to learn what i'm doing here because I can see myself trading when I get done playing football.
I have PDMI, KKUR, BRGO, OPSY

What do you think about these penny stocks. Offer any advice you have please

tightwork88 said:

Hello, my name is Desmond Clark, I play professional football with the Chicago bears. I'm kinda new to this. I was looking for some feedback for a few of the penny stocks I have. I'm trying to learn what i'm doing here because I can see myself trading when I get done playing football.
I have PDMI, KKUR, BRGO, OPSY

What do you think about these penny stocks. Offer any advice you have please

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Hi Desmond,
I see you're from the other side of the 'pond' (T2W being a UK site) and I assume that you're referring to US football as opposed to LA Galaxy - David Beckham style - soccer? Either way, it matters not - welcome to T2W!

I've not looked at your share holding, so I can't comment on the individual companies. However, as a general rule of thumb, 'playing' penny shares is a very high risk game. Of all the different instruments to trade and the myriad of styles and strategies to trade them, there are few that are as high risk and as challenging as penny shares. Essentially, investors are gambling that their holdings are going to be the next Microsoft or Google and be worth a fortune in five or ten years time. If it's a bit of fun for you and it really doesn't matter if all the companies disappear without trace, then hang on to (and possibly add to) your holdings. However, if you're looking to become a trader after you retire from pro' football, then there are few here who would advise you to pursue the penny share route and fewer still who could advise how to go about it successfully. Having said all that, everyone knows someone who bought a penny stock and later sold it for many dollars per share. So, it can be done. But it tends to be highly speculative and more akin to true gambling in which the odds favour the 'house' (i.e. casino or the bookie) and not the gambler. On the other hand, professional traders are the 'house' in that they know - over time - they have an edge which has a positive expectancy in their favour. If the latter sounds of interest, then you're in the right place, there are lots of people here who will help you and there is an encyclopedic amount of top quality information to set you on your way.
Enjoy!
Tim.

Whatever you do, with regard, to "penny stocks" make sure that they are earning money and that earnings have been growing for the last four years. Never buy one that "may" get better. It's got to be profitable and have a very good chance of meeting a forecast 10% next year.

Less than 30% debt. Remember, if it needs money, the banks are going to get the magnifying glass out. If it's not got a good earning record, the banks won't want to know. If it can't get a loan it will come to you, the shareholder, for the money.

I bought a share that was a penny share, but for less than 2 GBP. I did not have the nerve to buy it at 10p. That one was Next PLC and it went to 16 GBP.

You must research the fundamentals. Never buy it just because it's going through a bad patch.

tightwork88 said:

Hello, my name is Desmond Clark, I play professional football with the Chicago bears. I'm kinda new to this. I was looking for some feedback for a few of the penny stocks I have. I'm trying to learn what i'm doing here because I can see myself trading when I get done playing football.
I have PDMI, KKUR, BRGO, OPSY

What do you think about these penny stocks. Offer any advice you have please

Click to expand...

I looked at the 1-month charts for BRGO & OPSY; KKUR & OPSY and I see that the trading volumes for the 3 stocks picked up on Nov 17 and increased significantly on Nov. 18 and on that day (Nov 18) prices of BRGO went up more than 75%, OPSY 95+%, KKUR 25+% respectively as compared to those at the beginning of the charting period which is about 10 trading days earlier. Things are quiet now and BRGO, OPSY & KKUR are all traded lower than their prices last month, BRGO lost the least, OPSY and KKUR lost more than 25% for the 1 month period, and the loss is much more heavier if you happened to get in at the top on Nov 17 & 18. The traders who got into the stocks on Nov. 18 need to have their holding increased 100% from the current level to break even.

Penny stocks have a reputation as a good way to take you to the poor house for good reasons since they don't have the financial record for you to study, the majority of them do not have a valid business plans, companies such as: Vonage, Siri are the exception.

My recommendation to you is changed into the dollar stocks, study the game by going to the monthly meetings of the local individual investor clubs, learn to read charts from the market technicians, when you have someone holds your hands, it's much easier than you think.



BRGO 1-month daily chart compared with OPSY


KKUR 1-month daily chart compared with OPSY

Traders often recommend a book called Common Stocks and Uncommon Profits, which is also available in audio form. It's quite an old book now but offers timeless advice on how to analyse the fundamentals of a company before acquiring stock.

Hope this helps,

WT

Wizard Trader said:

Traders often recommend a book called Common Stocks and Uncommon Profits, which is also available in audio form. It's quite an old book now but offers timeless advice on how to analyse the fundamentals of a company before acquiring stock.

Hope this helps,

WT

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Thanks. I just bought the book and will read it as soon as I get it.