Strategy Part II: How I manage my risk


This is the follow up on my Strategy Part I.

In this article I will discuss my risk management strategy. It is very closely based on “The Complete Turtle Trader” by Michael W. Covel. So far this strategy hasn’t been thoroughly tested by myself in the penny stocking realm, but it is the basis upon which trend followers such as Dennis Richards and Jerry Parker have managed to stay in the game and remain profitable for … Continue Reading...

Strategy Part I: How I’ve started choosing my stocks

Over the past 4 months, I’ve started learning the ways of penny stocking by joining the Timothy Sykes challenge; I have learned a lot and for the last couple of weeks I’ve been coming to the realization that successful pennystocking traders develop their own ways of researching possible plays, entering/exiting and managing risk.

So here is the method I developed to pick my stocks as potential plays. As of yet, I have not figured out a proper way to rate … Continue Reading...

Day Watchlist for Last day of 2014 (December 31st)

Recap for Dec 29 Watchlist

My potential buy $SYRX did spike through the day on the 29th and 30th reaching a high of almost $2.6, I completely missed the breakout as I was focusing too much on $JRJC which did absolutely nothing.

$SYNC had a small drop of $0.3/sh between the 29th and the 30th, nothing major, but it was on my short list.

$JOB has kept on going on the 29th and finally went g/r on the 30th, was … Continue Reading...

Day Watchlist for December 29 2014

This week has been rather slow for me in terms of trading but quite productive in the development of my own strategy with specific rules for trading penny stocks.

My last watchlist was a bit of a bust and missed opportunities, but I think I’m on the right track.

Here’s my watchlist for tomorrow.

Potential Shorts

$EDIG – ★★ – I can’t seem to find any particular news explaining the sudden spike in price over the last 6-8 days. It … Continue Reading...

Working hard to find my own strategy

As I continue to work on developing my risk management/entry/exit strategy for pennystocking based on the Trend Following ideas, I have been brought to consider some of the main differences between the former and the latter.

First of all, is the obvious difference in pace: Trend Following focuses mainly on price variations extending over multiple months in order to generate returns, while pennystocking focuses mainly on intraday variations sometimes extending over a couple of days at the most; kind of … Continue Reading...

Some of the things I’ve been learning this week

Over the last couple of weeks I’ve been progressing through Timothy Sykes instructional DVDs; more specifically, “The New Rules of Pennystocking” which covers his 2010 Las Vegas conference.

Simultaneously, a friend provided me with a book entitled “The Complete Turtle Trader“, to which I didn’t pay much attention until I realized one of the most captivating speakers of the DVD set (so far, as I haven’t yet finished watching it) had written it: Michael W. CovelContinue Reading...

Day Watchlist for December 19 2014

Recap of the last couple of days

Having to be off for a couple of days, I hadn’t had time to prepare my lists since my last watchlist.

The market overall has been slow, and I missed a couple of opportunities yesterday – $ZAGG should have been on my earnings list but I didn’t pay attention to it at the time (price above $5.00), however it did go from the mid $5’s to the mid $6’s.

I also did a … Continue Reading...

Lessons I’ve learned on December 16th 2014 – Trade #13

Here are some of the lessons that I’ve learned today as the day went by; still a couple of hours to go, but I don’t see any good plays.

First of all, focus on your picks and cancel the noise, really… Following a quick alert on the chat, I shorted $GTATQ; I ended up losing $69.1. In retrospect, the price did drop about $0.06 from where I short-sold it and I could have made about $200 if I had stayed … Continue Reading...

2014-12-16 Day Watchlist

Yesterday’s recap

It seems my picks for yesterday were not that far off. I had some good picks but my timing was terrible and as a result I ended up not making any trades at all.

As I expected, $MEDA crashed and burned – $0.04 drop, almost 50%; I had the chance to take a position at open but I got scared away by additional promo emails that were sent out and ended up not committing to the trade.

$FRO … Continue Reading...

2014-12-15 Watchlist

So as an exercise in research and in order to take the first steps to break free from the Daily watchlists I receive from Timothy Sykes, I decided to get started and prepare my own watchlists for the next day. I don’t know if I’ll have the time or the patience to post them on a daily basis, but it will most definitely get me on my way to become a fully independent penny stock trader.

I will try to … Continue Reading...

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