Market Watch for week of July 13, 2009

[Dr. Dave]

It all depends- sometimes the price increases until the PR comes out, then it drops like a rock - this is called "buy on rumor, sell on news".

True too, you can miss a move.

I like to kind of divide the ways to trade into - speculative, fundamental and technical.

I'm more of a technical trader, others on this board fall predominantly into the other categories, so we will all place our trades differently.

Of course, its better to use information from all 3, but most are more weighted in one style or the other.

Take AAPL for example - great stock right? It's got the fundamentals there, and speculation on new products can keep you going, but what about if you bought at a technically weak price like $200?

So for these pennies, (this is totally for me, and what makes me comfortable) I try put a little in on what looks like strength (more technical based) or at a low point during a consolidation phase (more speculative). For the latter, I could buy more on strength later, so that I can get more oomph on a move - but that should also be preplanned - ie. put half in on the low phase. For the trades I make that just start on strength, I still keep it small in case of reversal. If there is a big run up, like you've seen for some of these stocks, I would cut out half to most of my position, and let the rest ride for higher gains at some point. I haven't seen enough charts on the pennies to see how many peaks come out on average, so I'll be playing it by ear. But the main thing is, is that for me, I have a plan that makes *me* comfortable, which includes the amount of money I put into a trade. Also, since this isn't exactly my realm of trading, I'm ok with stepping away if I whipsaw myself too much, and not making the mistake of trying to get it all back in a hurry.

It all boils down to what your goals are, and trying to find your niche in trading. Then seeking out a lot of information on it and keeping your trades in order so that you are still around a year later. While for some, the pennies are serious business, I'm just treating it all for fun, so I plan my trades to reflect that.

We all have different styles on this board -

[Skivail]

I'm getting excited!!

http://investorshub.advfn.com/boards...ge_id=39531244
I
'm in for 2 mil shares. And I really hope every word of this post is true.

I am in for a million shares myself. Really keeping my fingers crossed... i bought this 1 after you mentioned it last week. It was an impulse buy. I have to get lucky 1 of these times

[Dr. Dave]

Since we are on a satellite radio board, what about this one....
WRSPQ

[billhart22]

Since we are on a satellite radio board, what about this one....
WRSPQ

I don't do Q's. lol But will look at it. SSCCQ was our last one to appear, I do believe.

[bassmaster]

for anyone interested in learning how to read charts and technical indicators, there are short video lessons , check em out. then you will be able to give your own translation on the wonderful charts bill and dr dave put up for all of us.

http://www.stockhideout.com/video-text-chart-lessons/

[billhart22]

Investopedia FAQs Icon
What are the fifth-letter identifiers on the Nasdaq?
All of the companies traded on the Nasdaq have four-lettered tickers, which are representative of the actual company. For example, the ticker symbol for Nasdaq-traded Microsoft is MSFT. However, in some cases, a ticker symbol on the Nasdaq will have five letters where the fifth letter is an identifier symbol that tells market participants something about the company. Below is a list of all of the fifth-letter identifiers on the Nasdaq:

A- Class A Shares
B- Class B Shares
C- Issuer Qualification Exception (the company is not meeting all listing requirements but can remain on the exchange for the time being)
D- New Issue
E- Delinquent (in regard to SEC filings)
F- Foreign Issue
G- First Convertible Bond
H- Second Convertible Bond
I- Third Convertible Bond
J- Voting
K- Non-voting
M- Fourth Preferred Issue
N- Third Preferred Issue
O- Second Preferred Issue
P- First Preferred Issue
Q- Bankruptcy
R- Rights Issue
S- Shares of Beneficial Interest
T- Securities with warrants or rights
U- Units
V- When issued or when distributed (shares that are set to split or have another similar pending corporate actions)
W- Warrants
Y- American Depository Receipt
Z or L - Miscellaneous Situation (research is required to investigate the exact reason for the identifier being attached)

For more reading on this subject, see Understanding The Ticker Tape and The ABCs Of Stock Indexes.

[billhart22]

for anyone interested in learning how to read charts and technical indicators, there are short video lessons , check em out. then you will be able to give your own translation on the wonderful charts bill and dr dave put up for all of us.

http://www.stockhideout.com/video-text-chart-lessons/

They are a really cool and helpful site. I like them a lot. They help out newbies. Good call.

[Dr. Dave]

I don't do Q's. lol But will look at it. SSCCQ was our last one to appear, I do believe.

Hahaha - when I first read "I don't do Q's", I thought it said "I don't do the Q's", as in, what are you kidding me? trade something over a dime?

[billhart22]

Hahaha - when I first read "I don't do Q's", I thought it said "I don't do the Q's", as in, what are you kidding me? trade something over a dime?

That is funny, Dave! You have me laughing.

[billhart22]