TD Ameritrade. I set up the account just for OTC stuff. Sold the hunch at the right time....it's down to .0077 now and I doubt it'll hit the .009 again anytime soon. AABB announced the coin is live and after an initial run, it's dropping....that's why I bought the dip. All the day traders are taking their profits (135%+) from the past week. It'll start going back up soon.
@toytoy88 can you explain your platform and method of research? Back when I was playing with stocks I had a hard time figuring out about penny stocks. The single time I tried they totally tanked and I got turned off that fast.
I’m now up to about .80 of a share of GME, buying bits here and there on dips. It’s a good thing I’m not drinking anymore because stock trading would be VERY dangerous in my drunk days
Not sure you'd want to follow any advice I have. After taking my $500 profit out and reinvesting the other $400, my portfolio tanked today. Down almost $1K. Ouch. I'm still up $600 total, but being up $2500 was much, much better. Oh well, it happens. This morning: At close:
Most conservative thing to do, aside from not going into the casino, is look up an ETF fund in a sector/commodity that interests you. Or you could just start a watch list of stocks that interest you and see how those respond to different market factors over time. I use fidelity and mess around with penny stocks, with the exception of a fractional share in $GME, because it's entertaining. I find something in a market segment that I think I understand, I locate a company with a stock price that's at an acceptable risk level to me (usually below $1/share) and I think has the potential for growth, I buy somewhere between $10-50 worth of it, then as soon as I purchase it I watch it tank and never recover.
I'm up much, much more on the casinos, and gambling in general, than I may ever hope to be on my trading app. I just play with it, $500 in it. Everytime I think about going in bigger, I lose like 35% doing something stupid and takes months to recover it. Sure you think to yourself, "damn, I made back all that money in a short time". Thing is, I can never really pin down what is a stupid move until after it happens so I always take that hit. If I were in charge of all my investments, I would die penniless. Thank the Lord for places like Edward Jones.
One of the best "safest" funds you can get into is $VOO. I'm not entirely sure, but I think it might be one of the best return ETF's there has been in the past 5/10 years? I'd have to look up the stats again, but it is a pretty rock solid investment. The biggest thing I can offer you for advice, "Time in the market, beats timing the market". If you invested 1 million dollars into the market at the absolute top of the market the day before the 2008 crash happened and just let it sit there, you'd still be up almost 100% on your investment today. If you kept putting money into the same index fund the entire time, you'd be in a very nice position right now.
That's almost me exactly, minus being up in the casinos. I think I put like $400 in my fidelity account, it goes up and down and whatever. The market sucks right now. I considered it gone as soon as I put that money in there, and I'm just playing with it to see if I win the lucky scratch off. What I'm looking at for retirement and stuff is my 401(k), which I started over a decade ago and is doing quite nice. I doubt social security will be there for me when I'm of retirement age so at least I have that as a cushion.
The triple crown, dice and one armed bandits have been very generous to me for some reason. Other only casino I didn't win money in was on St Maarten. Boomtown near Reno, a ton of little indian casinos, all winners for me.
All crypto took a nose dive today, all about the same time. The Federal Reserve Chairman spoke out against them and it appears that caused distress in the market. That explains a lot.
I'd just like to know more about your overall method. Do you have specific sources you read from? How do you find these companies? What are green flags and red flags that you look for? In the above losses, was there something in hindsight that you missed or is it just a crapshoot? Just curious. I like to learn from other's mistakes and successes.
I'm not overly concerned about the losses, they're to be expected. Nothing goes up, up, up. There's always folks selling off profits after a bull run which in turn causes panic selling from some people or triggers stop losses, it's a domino effect. It happens all the time. AABB will come back. Hell, I have enough faith in it I added another 500 shares at .57 today and I'll turn a profit on those shares at some point. As far as any specific strategy, I don't have one. I'm pretty much treating the OTC stocks just like I did any other ones...but I did day trading when I played with the stock market and always dealt with distressed and highly volatile stocks. So, maybe I came into penny stocks with a different mind set than most people...I expect nose dives and quick rises, and usually they go hand in hand. Any quick rise is going to give way to a dip, the thing to remember is dips don't last forever. Eventually the exact same circumstances that caused the initial rise will cycle around again and cause another rise, so I hold (And sometimes continue to buy) during dips because I know at some point things will turn. Resources are numerous, but a bit more difficult to come by than with SEC stock. Mainly because OTC stocks aren't as heavily monitored to make sure they're not a scam. The one I'm using the most right now is www.stocktwits.com. They have message boards for a lot of the penny stocks (I just read them, I don't post.) You have to wade through a lot of bullshit (People posting gifs, trolls, cheerleaders, people talking out their ass), but there is useful stuff also....news releases, links to financials, etc... As far as red flags, I can tell you what I saw on the one I just flipped. I saw on their message board that they were gaining followers and a lot of speculation that it was going to be the next AABB. There was a great deal of FOMO (Fear of missing out) and it was only .003. So I played a hunch that it would piggy back AABB's rise with people that missed AABB when it was sub-penny. I got lucky. Red flags with the company were it's Pink certification was not current (Pink is a designation for OTC's that costs next to nothing and you pretty much only prove you're a human being), the company profile stated they were a cannabis and mining company (Uh, really?), there were no financials available, they don't actually own a mine, but they're thinking about buying one, and on and on. My exit strategy was $800, but I squeezed an extra $100 out of it. You can make money on crappy stocks every now and then, but you can also lose it just as easily if you read the information wrong or just simply miss something.
I guess this would be part two... As far as where I find the stocks, there is a lot of pumping stocks between the boards on stocktwits, so the companies kind of come to me. Most are quickly dismissed. My watch list is full of companies I looked at and have never done anything. Anything I would do differently? Well, I wouldn't have bought AABB at .57 this morning. I was expecting a rapid rise today due to them dropping their coin and it shot up .10 first thing. I underestimated the number of profit sellers which triggered the panic sellers and set off some people's stop losses. Then the whole crypto market got trolled by the Fed Chairman and here we are. The former could have been somewhat anticipated, the latter came out of left field. But, shit happens and usually at the worst possible moment.
I sold 10K shares to fund the DSCR stock and when I sold the DSCR I bought back 2K shares with what was left from my taking $500 back into my bank account and buying 500 AABB. I'll probably leverage myself to 100K shares at some point. I like the stock and think it's undervalued, it just needs a couple of catalysts to happen. Number one, change the name. They're using an old ticker and it comes up as 4CableTV and they're a cannabis company, and number two, waiting on their financials. They appear to be a solid company, the CEO has a winning track record, and they're making acquisitions. In an already crowded field they appear to be making all the right moves. I don't foresee a meteoric rise like some stocks, but I think they will go higher. I certainly don't see losing money on it holding long.
I might get in on some tnxp tomorrow. I like what they’re doing with potential ptsd treatments, and while I am leery of putting money (even like $25) behind something that I am emotionally invested in, I think that ptsd is gonna be even more prevalent with the emotional fallout of the pandemic. As much as I hate to think of mental health as a “market,” it certainly will be a major one in a very literal sense soon. If not already.
An old dev of mine did some black market PHP dev for Silk Road. At one point in time he had 15k bitcoin. He sold them all for under $10k. It's still painful to think about.
I could see something like that keeping a person awake at night. An AABB whale posted his losses today. My dropping $900 doesn't seem quite so bad.