Penny Stock Trading – Strategies and Brokers | Altcoin Newsletter
The altcoin and penny stock markets are highly manipulated, small volume markets of low priced stocks and brand new “digital currencies”.
While these 2 financial products (altcoins and penny stocks) many seem extremely different, their markets (and buying strategies) are similar in many respects…
The price of a brand new altcoin can literally shoot up by 1000% in one day! I’ve seen i happen multiple times. My personal best percentage gain was an increase of 800% on a small unknown altcoin called eKrona.
Altcoins can have dramatic price gains, but they can also drop 50 – 70% overnight. Penny stocks have similar percentage gains and falls (like altcoins), with some rising over 800%.
While these 2 products can be very different, both markets (penny stocks and altcoins) have similar price triggers and indicators of predict future gains.
Unlike the usual slow growth stocks that move up in value based on a healthy balance sheet, positive long term financial outlook, or increasing marketshare… penny stocks move based on hype, increased volume, company mergers, newsletter or email exposure, and possible manipulation.
In my opinion, penny stocks trade very similarly to how the altcoin market trades.
How is Penny Stocks Investing Different From Traditional Stock Investing?
Traditional investors believe in the “long-term” vision and productivity of a company, so they purchase its stock in the hope of a price increase over years. Usually, this isn’t the case with either penny stocks or new altcoins.
Most penny stock and altcoin investors look at the very “short-term” perspective to buy/sell for fast gains.
Brand new altcoins are affectionately referred to by traders as “shitcoins“…because at this stage in the game, altcoins are so new, that NO ONE knows what they will ultimately be used for, IF AT ALL!
SO, they might end up investing in altcoins which are worthless, like a pile of shit
Penny stocks represent low value companies with poor balance sheets, companies emerging from bankruptcy, small micro-sized companies, and stocks which are not “hot” on the market. Altcoins on the other hand, are a brand new technology which at the moment has NO MARKET! But, may have value at some time in the future.
Exchanges to Trade Penny Stocks
Penny stocks are low volume stocks, priced under $5 per share. They are highly volatile.. this is how traders make fast profits.
Because of this volatility, the SEC has ruled that “penny stock brokers or exchanges” must comply with additional laws and regulations. For this reason, not all exchanges will allow you to trade penny stocks.
Here is an exchange which focuses on penny stocks and shorting:
Suretrader (<—sign up here to trade penny stocks</span>) – this exchange appeals to penny stock investors and day-traders. They are incorporated in the Bahamas, which makes them exempt from the Pattern Day Trader Rule. They also have a list of 10,000 shortable stocks, in addition to a huge list of penny stocks (view them here). They provide 6:1 leveraging for your trades.
Price Triggers for Penny Stocks
Penny stocks and altcoins are so profitable, because their price can double overnight!
Any type of “hype” on a very low priced penny stock can also cause large price gains For example, the rapper 50 Cent sent out a tweet to his 3.8 million followers about a penny stock called H & H Imports. After his tweets, the penny stock rose significantly for a possible 8.7 million dollar gain.
This is easy, quick money! BUT, only if you are able to “enter and exit” the trade properly.
Traders can identify price triggers of penny stocks to profit. These price triggers include hype/news, trade volume, company mergers, supply and demand, chart analysis/TA indicators, and behind the scenes manipulation (which you can identify and profit from).
Price Triggers for Altcoins
The price triggers for new altcoins are very similar to the triggers of penny stocks.
These days, new altcoins are thrown onto the market at a rate of 3 per day. You have to stay on top of what is hot, or traders will lose interest!
The triggers for highly volatile altcoins are twitter hype, trading volume, beneficial news, and behind the scenes manipulation.
Once you have a twitter feed that consists of active traders, you can get early news and information about brand new altcoins, BEFORE the public buys in. I only buy if i feel i can purchase, BEFORE the rest of the market!
Good Luck trading! Let me know if you test out any strategies with altcoins or penny stocks on Twitter @altcoinforums
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Penny Stock Trading – Strategies and Brokers | Altcoin Newsletter
