|Hi! The short (no pun) answer is yes, but I need to immediately qualify that. I learned early on from traders much more experienced than me to be very careful with the nanocaps and penny stocks. It's easy to say (and is arguably true) that you get what you pay for, but also they may have gotten to that size due to poor fundamentals and performance. They can also be extremely volatile, which can add to their allure. As another qualifier, I tend towards high-volume mid-cap stocks and do not specialize in the nanos/pennies. With luck you will get a better answer than this from someone who does. |
That being said, I did extremely well with three: RLOG, VVUS and XTNT. However, before purchasing any shares I determined how much I was willing to lose. As the shares are obviously under $5, well, you can buy a boatload of .60 cent shares for $600, which I did with VVUS and XTNT. I sold both, as I recall, when they were around $1 each. I did the same with RLOG, but a lot more shares at .29 and really celebrated when I sold at $1.90, BUT I'M GUESSING THAT'S A PRETTY UNUSUAL EVENT!
I'll still invest in some under $5; first I research the fundamentals for company health, look at the specific sector, examine the technicals, look at whatever intrinsics/extrinsics could come into play, and listen to what others are saying. After all of that, I make a note of when to sell if it's gaining, when to sell if it's losing, i.e., sell when I have a 12% gain or 8% loss. I rarely, if ever, "average down"; I cut my losses at that exit point I decided on, and move on. To me, and others will differ, averaging down just means I'm buying more shares of a declining stock.
The best lesson I learned was that successful trading takes in a lot of "college level courses"; specifically math, economics, logic, and psychology. NOT creative writing: there is no place for emotion. It's too easy, whether you sold at profit or loss, to continue looking at the current price and start with the "damn, I should have held on, it came back, or went higher"--set up your entry and exit strategy and stick with it. Sorry for the length here, hope it helps, have fun and good luck.
NOTE: This message was originally posted on 2017-12-17 18:13:16 by the bluesdood.
| Reply to ajl0288 - Msg #636 - 07/19/2017 23:56|