How & when to sell/buy - Penny Stocks

Fri, 06-02-2006, 10:56 PM

Many people ask me each day when to sell/buy, how do you know when to sell or buy....well here goes

What people usually do to sell a stock is ...find the next resistance (for example stock ABC next resistance is @ .015) sell right BEFORE the resistance because stocks will usualy hit resistance then fall DOWN. So sell right before resistance then buy back at support. If the stock breaks resistance then you buy after the bid side has broken the resistance and you ride it to the next level of resistance, with the old resistance now acting as support. And the old old support as support level 2

Sell at:
1. just prior to resistance levels
2. when your stock has lost support (then look to add at support level 2)
3. when a stock has formed a base then has lost that support
4. when your UP!!!

So buy at:
1. support levels
2. breaks of resistance on the bid side (clearly, dont buy if the bid cracks resistance for 1 second )
3. when a stock is basing after a long downtrend and the bearish are done pissing on your parade

What acts as support and resistance?

Support
1. Any prior lower low then the current price
2. Any moving average that is lower then the current price
3. A major resistance level that was broken to the upside and then comes down to this (old) major resistance level, this will now be support
4. Bottom channel lines

Resistance
1. Any prior higher high then the current price
2. Any moving average that is higher then the current price
3. A major support level that was broken to the downside and then comes up to this (old) major support level, this will now be resistance
5. Top channel lines

I hope this helps you along your way of the selling strategy.

Sun, 09-10-2006, 01:00 PM

please all look at this often and remind yourself of these rules!!

luckycharm1 · Sun, 09-10-2006, 05:31 PM

Yeah I am going to make my own sticky out of this for the refrigerator door, memorize it and then chant it everyday. Thanks

eyeopening · Fri, 11-24-2006, 09:48 AM

Great post, Stock Analyzer! Thanks for sharing.

One other important indicator I use to determine when to buy or sell is stock volume.

Volume is important in that it tends to confirm the current trend. If a stock is moving up on high volume, we have a pretty good indicator that the trend is strong and there will be follow through on the current trend.

If a stock is moving up on low volume, it suggest that the trend is weak and that the stock is ripe for a reversal. This is certainly not the time you would want to enter a trade in the long direction.

Volume should move WITH the trend. If not, the two indicators are diverging, which is usually a sign of weakness of the current trend.

I've used trading volume as an important part of my trading system for many years and have found it to be quite reliable.

Hope this helps someone.

Apollo

foralllife · Mon, 05-14-2007, 11:54 PM

Good info!

mW394 · Wed, 05-30-2007, 02:44 PM

I was wondering if you can assist me in this matter. I received a check from Banc of America for $466, saying that I had 20,000 shares of Quadrex in a Quick and Reilly account, which was acquired by Banc of America. The stock at that time was worthless in the year 2003. In July 2003 they sold the stock for one penny, deeming it worthless. Now in May 2007 I received a check saying there might have been an error; that the stock went up during or after that time. By cashing the check I cannot bring any other claims against them.

If you have any information on this stock, or know where I can follow up with this, I would very much appreciate it.

Fri, 06-02-2006, 10:56 PM	#1 (permalink)
Stock_Analyzer Posts: n/a	How & when to sell/buy Many people ask me each day when to sell/buy, how do you know when to sell or buy....well here goes What people usually do to sell a stock is ...find the next resistance (for example stock ABC next resistance is @ .015) sell right BEFORE the resistance because stocks will usualy hit resistance then fall DOWN. So sell right before resistance then buy back at support. If the stock breaks resistance then you buy after the bid side has broken the resistance and you ride it to the next level of resistance, with the old resistance now acting as support. And the old old support as support level 2 Sell at: 1. just prior to resistance levels 2. when your stock has lost support (then look to add at support level 2) 3. when a stock has formed a base then has lost that support 4. when your UP!!! So buy at: 1. support levels 2. breaks of resistance on the bid side (clearly, dont buy if the bid cracks resistance for 1 second ) 3. when a stock is basing after a long downtrend and the bearish are done pissing on your parade What acts as support and resistance? Support 1. Any prior lower low then the current price 2. Any moving average that is lower then the current price 3. A major resistance level that was broken to the upside and then comes down to this (old) major resistance level, this will now be support 4. Bottom channel lines Resistance 1. Any prior higher high then the current price 2. Any moving average that is higher then the current price 3. A major support level that was broken to the downside and then comes up to this (old) major support level, this will now be resistance 5. Top channel lines I hope this helps you along your way of the selling strategy.

Fri, 11-24-2006, 09:48 AM	#4 (permalink)
eyeopening Join Date: Nov 2006 Location: Virginia Posts: 2	Another Important Trading Indicator Great post, Stock Analyzer! Thanks for sharing. One other important indicator I use to determine when to buy or sell is stock volume. Volume is important in that it tends to confirm the current trend. If a stock is moving up on high volume, we have a pretty good indicator that the trend is strong and there will be follow through on the current trend. If a stock is moving up on low volume, it suggest that the trend is weak and that the stock is ripe for a reversal. This is certainly not the time you would want to enter a trade in the long direction. Volume should move WITH the trend. If not, the two indicators are diverging, which is usually a sign of weakness of the current trend. I've used trading volume as an important part of my trading system for many years and have found it to be quite reliable. Hope this helps someone. Apollo

Wed, 05-30-2007, 02:44 PM	#6 (permalink)
mW394 Join Date: May 2007 Posts: 1	quadrex-corp I was wondering if you can assist me in this matter. I received a check from Banc of America for $466, saying that I had 20,000 shares of Quadrex in a Quick and Reilly account, which was acquired by Banc of America. The stock at that time was worthless in the year 2003. In July 2003 they sold the stock for one penny, deeming it worthless. Now in May 2007 I received a check saying there might have been an error; that the stock went up during or after that time. By cashing the check I cannot bring any other claims against them. If you have any information on this stock, or know where I can follow up with this, I would very much appreciate it.

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Sun, 09-10-2006, 01:00 PM	#2 (permalink)
Stock_Analyzer Posts: n/a	please all look at this often and remind yourself of these rules!!

Sun, 09-10-2006, 05:31 PM	#3 (permalink)
luckycharm1 Member Join Date: Jul 2006 Posts: 247	Yeah I am going to make my own sticky out of this for the refrigerator door, memorize it and then chant it everyday. Thanks

Mon, 05-14-2007, 11:54 PM	#5 (permalink)
foralllife Join Date: Apr 2007 Posts: 5	Good info!