Originally Posted by
GoHerdGreg
Dr. D--
I do have my finger on the trigger of ANX. Your post about doing TA just sums up my approach to buying a stock. In short, you are trying to predict the future. In order to do that, here's the input(s) I rely on to make the initial decision:
1. I look at the Penny Stock Guru's site, read his picks. I look for one that has a compelling story, is a somewhat real company. The trick to using his recommendations is to GO BACK at least one week and see how his previous picks are doing.
Usually, you can find that his timing was off, or see what truly happened (versus his prediction/recommendation).
2. Go to The Shrub (and Google, etc.) to see what the overall feeling is of the lemmings. The word on the street, in other words. I get the overall sentiment here.
3. Read the iBox on The Shrub to see share structure, etc.
4. Look at the chart, at least going back one year. See how the stock has performed.
Wad all those up and see how you feel about the stock at that moment. If I'm still interested, I may go through all that one more time (a day later), and if there are no major red flags, I will make a buy.
I then immediately set a sell order for where I want to exit (in a perfect world).
For ANX, I set my sell at $.28 (remember that I bought in at $.18). To me, that's a decent gain for my money. If things flatten out, I'll accept less. If things get really hot, I may hold off for more.