TRADING STRATEGIES
ROLLING PENNIES
ROLLERS:
Are stocks your involvement in will be temporary. Rolling stocks is simply a means to and end. You roll stocks to gain capital
to move towards your "rally flags". Trying to day trade and roll stocks gets riskier the more you do it. Your goal is to roll until
you have sufficient capital and rally flags that you are only making less than 1/2 dozen trades a year in stocks you know about
and are comfortable with.
***********************************************************
MESSAGE 3; HOW TO ROLL PENNY'S
For Fun and Profit.
1. DON'T GET GREEDY! That's how you win the Penny Stock game. I know that's just a cliche to many of you. After you
lose a few grand a few times it will become your #1 rule.
2. Bat for singles not home runs. No 1 or 2 stocks will make you rich. But a formula that works (like this one) repeated over
and over again will give you an account balance sufficient to "begin" making you rich. If you're not already.
3. Have more than 1 on-line Broker, More than 1 account, more than 1 phone line and more than 1 way of placing trades. Just
in case.
4. Never be afraid to sell anytime you see "green". Never be afraid to "not buy" every time you smell green.
5. Make sure every stock you buy meets the selection criteria listed in my previous post FINDING PENNY STOCKS IN
PLAY, before you make the leap.
6. Learn the art of WHEN not just what and why. Timing is the key to rolling the Penny's. Get good at that and the stock itself
won't matter so much.
7. Never buy into a run more than 24 hours old.
8. Look for pending events or PR's that have yet to be reflected in the price.
9. The BASHERS are always right. It's only a question of when.
10. The hypsters are NEVER right. Your formula is! Stick with that and not them.
11. When a penny ends it's run it won't be back for months. Usually many months. Disregard hypsters saying "it's bottomed
out. buy now" it may have bottomed out but it ain't coming back for months. You can "buy later" just before next run.
12. When you find yourself in the middle of a blood bath, never be afraid to liquidate and cut your losses. Blue Chip stocks
rebound in days/weeks, but Penny's won't rebound for many months. Too many other stocks to re-coup your losses from in the
mean time.
13. Unrealized gains ARE NOT LOSSES! Just bad timing. Work on that and forget the other.
14. Buy on days preceeding EXPECTED news and sell on day of EXPECTED news.
15. Buy on day/next of SHOCK news (unexpected) then watch and see how far it carries the stock. Sell with a drop of 10%
off it's high at any given moment.
16. Sell your stock when you see a drop of 10% at any time. It will drop more. Trust me. You'll miss some runners but at least
you'll be safer and NOT GREEDY!
17. Look for a "Crazy Ivan" (unexplained and dramatic change of direction) by the MM's one way or the other. They only
position themselves when they have something planned.
18. Penny Stocks are firmly in the hands of the MM's, The runs up and down the Penny Stocks make are in the hands of the
Big Block buyers and sellers. All other investors are in addition to, not instead of the run. They create the base. The big boys
move that base temporarily in one direction or the other.
19. Don't fight the flow of the big boys. "Follow" them in AND out. Or get left behind to pick up the tab for their meal. Look
for big block buys on their way in, look for their big block sells on their way out. Once they begin their move you got an hour
max. to follow suit. The price will follow them in whichever direction they're headed. FAST.
20. Big block buys have a short shelf life. Long to them is a week. Don't think their creating the new base. They're capitalizing
on it temporarily and the "temporary" effect they will have on it.
21. What a Penny Stock does it will do by 9:45 am Eastern time. Big block buys in the hour after open and hour before close
are the real indicators to the next few hours of trading.
22. Know your exit before you enter. Have another entrance lined up before you exit.
23. Calculate your profits/losses per month. Not per day, hour, stock, or minute.
24. Accumulate in several blocks on the way up and sell in 1 block on your way out. There may be several good times to get
onboard, but when it's time to go, it's time to go!
25. NEVER USE MARKET ORDERS! EVER! Only limit orders. Never buy on margin. No stock is that safe or good.
NEVER place pre-market orders. You never know. Despite what happened YESTERDAY.
26. I KNOW TECNICALS ARE IMPORTANT! But not that much to me. You'll see what I mean. I go on gut hunch. and
experience. You will get that using this formula. Besides, what do Penny Stocks have to do with technical anything? It's all
hype, emotion, MM manipulation and so on. "those" are my technicals.
27. Write down all contact info about a stocks company you come across for future reference. You may have to confirm first
hand what you come across in your research.
28. DON'T CHASE. REPLACE! If you miss a run, you miss it. Despite what the hypsters say your best bet is finding another
one. Sometimes the best deal is the one you "don't" make.
29. Take your PC off "auto-pilot" this game ain't that simple or easy. Stay on top of things by the minute. That's how quick
they change.
30. 99% of the posts on stock boards contain NO USEFUL INFO, learn to find the 1% that do.
31. Forget about the "long and strong's" battle cry of "Go for the King!" Listen to me. You want to be successful at what I'm
trying to teach you? Then play it safe and smart. CAPTURE THE QUEEN! then you'll get the King and the Game by default
with less stress too.
On rollers just use the formula I describe here and in those first 7 posts on this board. Don't get greedy
and either sell w/ a GTC order right after you buy and wait for it to reach your target profit %, or if you
can watch it closely then bail when you think it's right. Trading & volume #'s will tell you when. Buy on
rumor, sell on news, etc. The same factors we've been talking about here plus other MONKEYS will
give a good target via general consensus.
LONG TERM for rolling penny's is 3 weeks. Forget what the stocks "real" long term potential is. Focus
on the "short term" (next 2-3 weeks)
What is the number of available shares? The bulk will have to be accumulated before a real run can
begin. All other run ups are strictly hype and temporary. But that's okay sometimes.
Clarification:
Buy = Base investment + 2nd Block = Total Investment
Buy = $1,000 + $1,000 = $2,000 bought at an average price of .05 = 40,000 shares
Sell = 25% of Total Investment Shares / Total Investment $’s = Target Price
Sell =10,000 shares / $2,000 = .20 Target Price
***********************************************************
Clarification:
Step I
Buy = Base investment + 2nd Block = Total Investment
$1,000 + $1,000 = $2,000 bought at an average price of .05 = 40,000 shares
Sell = 2nd Block of Shares / Total Investment $’s = Target Price
Sell =20,000 shares / $2,000 = .10 Target Price
Step II
Free Shares = 20,000
Buy = Dip + 2nd Block on run = Total Investment $’s
$1,000 + $1,000 = $2,000 bought at an average price of .10 = 20,000 shares
Sell = Dip + 2nd Block of Shares / Total Investment $’s = Target Price
Sell =10,000 shares / $2,000 = .20 Target Price
Continue to add to all Rally Flags throughout the year special thanks to MB
special thanks to all the elf's friends
blue elf designs
the posse
timber
