Catching a Rolling Penny Stock
I always have a watch list open each morning of all the “hot tips” I heard about over the past few days. Newsletters and the stockhideout.com chat room give me more of
these tips than I can handle. Today at about 8 AM someone mentioned something about IGNT so I added it to my watch list.
As the market opened, I noticed this stock was shooting straight up so I broke my (safety) rule and got in early at 9:55 for .0084 a share. I almost bought 200,000 shares but since I was getting in earlier than usual, I got in for only 100,000 shares (which is $100 per penny). Anyway, the stock took off even faster after my purchase and I kept upping my stop loss order as it went up .10 then .12, then .15 and finally .16, the stock touched .17 and came crashing down FAST.
My stop market order triggered at .16 but it took what seemed like a few minutes for my order to go through and I got out at .155 and .145 for a $600+ gain in 30 minutes. This was a trade where at best I was shooting for a small $200-$250 gain. There is nothing sweeter than a trade that goes like this when so many seem to run you through a ringer before giving up a bit of profit.
Hopping on a runner is a dangerous game but can be a lot of fun and very profitable, however, make sure you have a stop loss in place and move it up as the stock shoots up to protect your profit. I did zero due diligence on this stock and still don’t know what they do, with penny’s, knowing what a penny stock does is not important, what is important is whether people think they can make fast money.
This also illustrates the importance of keeping a good watch list. You will hear so many tips each day you need a way to track them online so you know when one is paying off. Don’t focus on one stock or you will grow old trying to make a nickel, keep your eye on 10 or 20 stocks and your odds increase greatly.
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About the Author: I have plenty of sites that talk about making money on the web. I figured it's time to start a site that talks about saving money on the web. After all, a dollar saved is pretty much the same as a dollar earned.