Road to $100k

Posted by twoboos on April 23, 2012 (08:24PM)

Hey everyone. About a year ago I gave up on big blue chip companies (except for in my ROTH IRA) because of the slooooow returns and started trading penny stocks. I'm not talking about the crappy pennies that crappy promoters push. I started trading penny stocks by analyzing charts, looking at indicators (i.e RSI, MACD, ADX, etc) and with the help of 007stockchat.com and ihub, I've done extremely well.  I've done well on some of the big heavy promoted stocks, promoted by APS and SMA and I've decided to start a little forum keeping track of my progress (actually starting over) and documenting every trade I make. I've already made a lot of money off my current position in SEFE , and I still hold shares of that stock. So I will start this in approximately 2 weeks from now, starting fresh. I'm opening a new account just for this purpose (not here). I will turn $2,000 into $100,000 within 10 months. (I've done this already)

Start with : $2,000
First Goal: $100,000
Second Goal : $250,000

Instead of showing you how to day trade pennies, I will be doing multi-week plays, so it's easy to follow along and track yourself. Who know maybe you'll change your mind on penny stocks :)

Stay tuned and watch how to make a killing with pennies, you'll be surprised how easy it is.


Posted by made to trade on April 23, 2012 (08:29PM)


Thanks for posting.  I enjoy threads like this because it's rare to see:

A) people who open their ledger
B) people who make money and open their ledger

Posted by twoboos on April 23, 2012 (08:36PM)

Haha, exactly, and everyone bashes me for pennies, so I decided to open it up haha

Posted by The Eagle on April 23, 2012 (10:00PM)

Best of luck to you on your quest.

Posted by twoboos on April 23, 2012 (11:21PM)

Thanks, I will post my trading rules, strategies, symbols i'm trading, update as often as I can (daily really) but it starts in about 2 weeks.. maybe less.

Posted by incubus on April 24, 2012 (12:08AM)

Why bother paying the fee's for a penny stock when the odds are better just gambling away your money on leveraged ETF's?

Seriously, look at TK fee's on penny stocks, then consider the fact that almost any sector will eventually go up, you're better off.

A $0.50 stock will cost you $0.01 p/share plus $4.95, that's $45 to buy $2000 worth.

You could just buy $700 worth of a 3X ETF without the fee, and trust me, you'll get all the excitement your heart desires.

On SEFE, I read about it, basically claims to have invented a line attached to a balloon that collects static electricity, and, according to them, it generates a lot of electricity.

This reminds me of a product Amway was promoting back in the 80's, a special pill you add to your gas tank that tripled the mileage of your gas.

I opted out of the "special" offer at the time, decided to wait around and see if it was credible.

I see things like this every few years, if SEFE has a credible product I don't mind missing the bottom, no more than I minded missing the bottom level on those gas "pills". in the 80's.

Posted by Midneo on April 24, 2012 (01:06AM)

Incubus has a point here if you want to invest in penny stocks you should go to another broker that should give you a more affordable rate and i would like really hear how you make 2,000 into 250,000. I thought i was insane trying to keep a return of 300% a year and I thought tree hamster was a maniac playing options but you my friend or in a whole other level. Best of luck and show you're trading strategy when you can. Personally my friend I invest in penny stocks only when the company has been beaten down to bankruptcy or a few other penny stocks my traders give me but personally i prefer low cap companies with potential to grow. Although At&T, Verizon, MSFT pay a good divident. I prefer a company like Metro PCs, Leap wireless, Nokia, RImm that have a higher potential to grow if  and only if you are confident in the company you are trading. then best of luck and show a few penny stocks out there and defend you case on buy in it  

Posted by kiddo on April 24, 2012 (04:30AM)

if you read the first post, he clearly stated the account to be used for this penny stock quest is not here :-P

Posted by onawhim on April 24, 2012 (07:28AM)

incubus said:

On SEFE, I read about it, basically claims to have invented a line attached to a balloon that collects static electricity, and, according to them, it generates a lot of electricity.

 Sounds like what Benjamin Franklin did with the kite.  

Posted by twoboos on April 24, 2012 (09:46AM)

SEFE as a company is horrible, they will not boom... but you surely can profit from a 1.20 entry and ride it up... currently at 2.40 :) then sell. Penny stocks aren't investments, traded properly they're actually quit easy to make money off of. You'll see :)

Posted by kiddo on April 27, 2012 (10:35AM)

did you get my pm?

Posted by Diontheman on May 07, 2012 (06:20AM)

I've recently started trading pennies and have pretty much come to most of the same conclusions as twoboos.  I am only trading pennies that have potential to be successful companies down the road but have noticed watching them the last year and a half that when they go past two dollars they usually tank.  After that if there is still a lot of volume and it bottoms and buying interest returns they are good to buy again.  I used to speculate on a lot of losing pennys but know now to only focus on pennies that trade alot of money daily.  You multiply the volume by the price of the stock and if it's not alot of money and plenty liquidity I stay clear.  I bought SEFE and sold it for a nice profit but, want to buy it back again.  I would like to profit short term with it and also I would like to have some for the long haul too!!!!  
    Folks, I just saw a wholly owned subsidiary of bank of america buy a penny stock 5% of the company and double their money in about 2 or 3 months @ about .30 a share.  I also saw an investment firm buy a pennystock at around the same price and it ended up around 40.00 a friggin share in a pretty quick amount of time.  People wake up and smell the java, penny stocks are real companies.  Just choose quality over price.  Stop looking at the .0003 per share stocks.  Get a calculator and add up what a millions shares would cost ($300).  Folks you can't have enough money for multiple people to profit at that liquidity.  Look at the ones trading @ 1,000,000 volume plus and a reasonable amount of money, say .25 and $25,000 or so being traded per day.  You need enough money in the pot for multiple people to get in and out of the stock for a profit.  I want to make my quick money and still have shares in some of the companies to hold on for the long haul and make a killing!!!!!!!!!!   It's real for you skeptics out there.  You need to invest in a calculator and use it.  If you don't believe it start yourself up a  virtual trading account @ howthemarketworks.com a virtual trading platform you could buy penny stocks with and check it out.  Put up or shut up!!!!!!!!  Talk is cheap and action is my satisfaction!!!!

Posted by TampaJake on May 07, 2012 (09:27AM)

Just my opionion but SEFE is one of the biggest pump and dump out there. I get solicitations in my email and now am starting to get them in the postal mail. You may get lucky and get in and out with a profit, but my gut tells me someone at sometime is going to be left holding the bag. Just my opinion and of course I could be wrong. Just be careful.

Posted by The Otter Way on May 07, 2012 (12:47PM)

TampaJake said: Just my opionion but SEFE is one of the biggest pump and dump out there. I get solicitations in my email and now am starting to get them in the postal mail. You may get lucky and get in and out with a profit, but my gut tells me someone at sometime is going to be left holding the bag. Just my opinion and of course I could be wrong. Just be careful.

 I too received 2 mailings somehow attached to my IB Account.  Then I received a email message from from another penny suggesting that 

Focus, focus & focus on the big picture and get prepared to execute on the upcoming "big one" so first & foremost.... be sure to have your brokerage account funded & liquid (I highly recommend switching brokers ASAP if you're with ThinkorSwim/InteractiveBrokers because they're "censoring" more and more penny stock trades and may not accept buy orders).

I bought the hype on LUXR knowing that they would have to bring it close to 2.00 so I made a small amount of .40 per share; but I left the other suggestions alone.

SEFE is a pump and dump with little to no recovery, no assets, no detail on anything. 

Posted by incubus on May 07, 2012 (03:01PM)

incubus said:
On SEFE, I read about it, basically claims to have invented a line attached to a balloon that collects static electricity, and, according to them, it generates a lot of electricity.

This reminds me of a product Amway was promoting back in the 80's, a special pill you add to your gas tank that tripled the mileage of your gas.

I opted out of the "special" offer at the time, decided to wait around and see if it was credible.

I see things like this every few years, if SEFE has a credible product I don't mind missing the bottom, no more than I minded missing the bottom level on those gas "pills". in the 80's.

 SEFE down 50% since this thread was opened.

Posted by MoreDiv on May 07, 2012 (06:05PM)

RE: SEFE: Yeah - the only reason I read about it is because I accidentally opened some junk mail ('real' mail) from "someone" promoting that particular company. Personally, that would scare me away quicker than the commission (which says something) A pump and dump sham came immediately to mind when i realized what it was.

With that said I do wish you luck on whatever your throw the dice on...

Posted by incubus on May 07, 2012 (07:00PM)

The irony, I'd suggested buying a leveraged index ETF to avoid the penny fees, if you really insist on high risk.

FAS, TNA, and just about any other leveraged bull index ETP (barring futures products like , UNG, VXX or TVIX) are now in the green or close to it.

Posted by MoreDiv on May 07, 2012 (08:25PM)

I didn't realize the thread has been around for a bit.. yep - definitely better ways to gamble with less risk. FAS gain was  +10% just from 4/24 (your post) - 5/1. Some otm call options on that - if he really was feeling lucky. Hope they got out of SEFE in one piece.

Posted by Diontheman on May 08, 2012 (01:12PM)

The thing with SEFE is they have a technology that is better than any other clean energy that can be used for practical application and their capable of storing it in a device as saved energy.  That fact alone was enough to get my attention.  I am being conservative and only buying 50.00 worth.  When I see it picking up along with volume and lots of buying interest I will confidently be buying more shares!!!!    There are lots of people who don't see the potential in inventions that are not fully completed,  Even the ones that are but, that is why there are not more people who are wealthy.  It takes a lot of vision to see things ahead of time before the masses!!!!  To each is own, but I'll tell you what.  If it starts moving I will be on it early and whoever hesitates or watches it and does nothing will lose out!!!!  I know from experience watching even some of the best penny stocks sometimes even take a year or more before it starts to really move, even with a lot of merit.  I have a few I feel very confident about, but I know it could take time.  I am just going to be very patient and not put too much money in till it moves!!!  As a matter of fact I had two penny stocks I sold within the last 3 weeks that went over 100% because I recognized the vision and opportunity. Both of them I feel confident for the long haul.  The last DOMK I sold @ 4.31 and bought @ 1.38  4 days ago.  I am confident this stock will end up making much more money, but I want to buy back some shares @ 3.10 hopefully,   I wanted to take some money off the table, till the next buying opportunity.  I follow the market every day and am very serious.  If you comment choose your words carefully, cause you may end up eating them!!!!!  Respect for other people and traders is very important to me.  I am here to help others and share opinions and ideas.  I hope I personally have not offended anyone, if so I apologize in advance.

Posted by treeHamster on May 08, 2012 (01:30PM)

I'm highly interested in this because I had my start in trading sub-$5 equities with most of my trading in sub $2 equities. I would agree that penny stocks are HORRIBLE investments but they are fairly easy trading tools to play runs on. They are like weekly options but without the decay and you can hold them indefinitely (or until the company most likely goes under) if you want which doesn't happen with options. They also usually have tighter spreads than weekly options do, as a side note.

Oh and one last thing, I forgot to mention, penny stocks aren't affected the say way by low volume periods like weekly options are so you can avoid the crappy periods (like now) at the cost of generally lower (but not a WHOLE lot lower) returns.

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