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Anticipation and Projection are key elements
when trading pennies. Knowing how the moods of
investors and the market itself will react during a
stock play. For example: A stock jumps from .02 to
.06 cents per share due to news. As the stock jumped
to .06, the speed and the fashion in which it
performed is key. Did the stock jump to .06 as soon
as the market opened, or did it gradually rise to
.06 throughout the day. Those are the factors that
you have to analyze. If it was an immediate jump,
chances are the stock won't stay at .06, it will
most likely drop due to the way the market pushed it
up. To take advantage of that stock, you would wait
and let it drop to its low, or even below the low,
and then pick it up. The outcome is usually a nice
profit from the bounce, when it hits its low. Now,
if you see a gradual rise in price, then that is an
indication of a good Daytrade. The news comes out,
the stock starts climbing slowly. By the end of the
day, you could have a double, triple on your hands.
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