Tips for Trading Penny Stocks


There is a lot going on with the reasons that insiders are buying and selling shares some of which have nothing to do with the company. You should never rely on insider trading to tell you anything about the direction of the share price. Always use limit orders when trading penny stocks as opposed to market orders. Only trade penny stocks from the Bulletin Board or the major Markets. Do not trade penny stocks which are on the Pink Sheets and other dark markets.

You should only use candle stick trading charts when looking at penny stocks. If you don’t understand what candle stick charts are, or you don’t understand how to read them then there is a video that we will put a link to which will explain everything. Its my explanation of how candle stick charts work and all the benefits that there are with them. So check it out!

Share holder turn over is the utmost importance when trading penny stocks. When you see at least 25% of the total outstanding shares trading over the course of weeks or a couple of months. At the same time when the share price has not really changed not either higher nor lower, then you can assume great share of share holder turn over. Whats happening is that long time share holder , frustrated investors are getting rid of their shares. At the same time that selling pressure is being met by buying demand by new share holders. The share holder base is turning over so the mix is gone, more newer investors and fewer long term investors.

By their nature a newer investor is much less likely to sell their shares. They just bought, they’re expecting the shares to go higher and thats why they got involved in the first place. The trading volume of a penny stock is going to tell you a lot more then the trading activity.

So its great to know the price of the shares are at but even more important is to look at how many shares trading to put the shares to that price. If you watch the trading volume you get an idea of things like; the sustainability of the price moves and share holder turn over. Typically when you look at a trading chart you’re gonna see the price of the stock on the top half of the chart and the bottom half of the chart you’re gonna see the trading volume.

So even if you’re doing any kind of technical analysis at all using the trading chart to try and predict what share price is going to do. You need to make sure that any patterns you see are formed by enough trading volume or else they are entirely unreliable. For example, if you see a stock jump up 75% or 115% but it did that on only 400 shares traded. You can be certain that the share price activity is going to reverse and the stock is going to come back down. With penny stocks its so important to watch the management team. People tend to do what they have always done.

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So if the current CEO of the current stock you are watching has bankrupted 3 of the last 5 companies they were with they’ll probably be pretty bad for this one too. So do a quick google search on all the top executives and management. Take a look at what companies they were with previously? What positions did they hold?

How did the companies they were with perform during their tenure. Insider and Institutional investor holdings are so important when trading penny stocks. If, 95% of shares are held by mutual fund managers and hedge fund managers. Then that only leaves about 5% of the shares which you see traded day to day to retail investors like you and I.

Since institutional investors are usually in it for a much longer time frame. All the trades you are seeing are usually are just retail investors like you and I and are typically over done and they usually will reverse. This is why its so important to keep an eye on the institutional ownership of a penny stock and try to get an idea of how many shares are out there that are being actively traded compared to how many shares out there that are being held long term but professional traders.

The impact of artificial events will typically be temporary. By artificial I mean things like government grants, stock promotions, government subsidies, stock by back plans. For example; if there is a stock by back plan in a penny stock, they are buying the their shares and taking them off the market and that’s going to create artificial demand. That artificial demand will increase the price of the shares temporarily. Eventually when that buy back has ended the share price will trade to where it would have been trading to in the first place if it weren’t for the buy back.

Read “Penny Stocks for Dummies!” Yes I’m bias because I wrote the book, and if you buy it I make a small royalty but this is the book I wish I had read when I got started trading penny stocks at 14 years old. It would have helped me avoid thousands of dollars in stupid mistakes and it would have helped me make thousands of dollars more. If you don’t want to spend the $23 for it then take it out from the library or borrow it from a friend.

Any one interested in Penny Stocks should read “Penny Stocks for Dummies.” Most penny stock investors average down when they are holding shares of a stock which they bought and then it decreased in price. They buy more of a losing company to try to bring their average price per share down but their actually just throwing more good money after bad. Typically when you average down you’ve already made a mistake when you tired to pick that stock in the first place and now you’re just putting money into that losing investment and it typically tends to keep on going down. Whats better and a more effective strategy that we’ve found in our opinion, is to average up. When you buy shares of a penny stock and it starts to move in the right direction then you put more money in to the winning bet because that stock maybe, is just getting started and its got a lot higher to go.

When trading penny stocks always use stop loss orders. With penny stocks its so important to make sure that your small losses don’t become big losses and stop losses is one way to do this. On the other side of the coin when you do have a stock that is going in the right direction then you want to let the gains run. Penny stocks typically have a way of going up a lot more then you would anticipate that they could in the first place. Investors sentiment is a contrarian indicator. When everyone believes that a stock is going to fall or collapse in price the shares are more likely to go in the exact opposite direction.

This is because people act on their beliefs. If everyone is expecting the stock market to crash, everybody is selling their shares. What happens then is when everyone who wants to sell has done so, even a little bit of buying turns things around and starts driving the prices higher. Penny stocks whether in an up trend or down trend are most likely to continue on in that exact same trend.

Now, they will eventually break out of that trend and reverse but its very difficult to time and anticipate when that change of direction may occur. SO the trends you need to understand will typically last a lot longer then people would expect and a lot longer then they should. Always get started with trading penny stocks just like I did, by paper trading. You need to notice and avoid your own confirmation bias. People see what they want to see and if you see two sides of one argument you may gravitate towards the one side that supports your opinion. This can be incredibly costly for trading penny stocks.

You need to notice and avoid all of your own confirmation bias and just look at the objective facts. Do not believe or blindly follow what the mass media is telling you. Instead use it as a tool to understand what the masses are going to be believing, how they are going to be acting. This is going to help you avoid getting involved in investments at over priced levels because everyone’s crowding around to buy the same thing. Out of this understand the way the media works and understanding the impact media has on the masses of society. It’s going to open up so many more massive opportunities for you that gonna make all the difference.

Invest in penny stocks in penny stock companies which you understand and then call the investor relations contact of those companies and ask questions, try the products or services that they sell if you are able. Even better make an unannounced drop by of their head office if its possible just to see whats going on , see what kind of company you’re dealing with. In other words, invest your time before you invest your money. Penny stock picks which you hear about for free regardless of how you heard about them when you hear about them for free there is always hidden motivations behind those stock picks.

This is even true of the stocks that you hear through the rumour mill or the co worker who tells you about this new hot investment. Your poor co worker doesn’t even realize that they have fallen victim to the promoters “pump and dump” scheme in the feeding of the rumours that they are putting out there. You need to avoid free stock picks, people get burned by this more then anything else in penny stocks.

Only trust penny stock picks which come from a service with a 100% unbiased guarantee. This is the only way that you are going to know that they have your best interest at heart and they put your interests first. My team and I have found that the most effective way to find and trade penny stocks is to locate the high quality companies first using extensive fundamental analysis. Then we use technical analysis to try and find the most opportune buying and selling prices of those stocks.

MSC Divina – Travel Guide

Hello and welcome to this guide to the MSC Divina. It’s a Fantasia class ship which entered service in 2012 and it has room for 4,345 passengers. The ship is dedicated to the Italian actress Sophia Loren and you can see a lot of elements of class and elegance in the interior design especially the beautiful Swarovski staircases, they really are stunning to look at. So there’s 13 passenger decks in total. Deck 5, about half of that is for cabins and all of decks 8 through to 13. So reception is on deck 5 within the central atrium, it’s the hub of the ship and it’s where those beautiful Swarovski staircases are located and the lovely glass elevators, they’re really something to look at.

And there’s a piano in the middle and at night time there’s entertainment on, it’s really a nice place to sit and relax and people watch. And the excursions desk is just upstairs on deck 6. So there’s a number of different dining options on the MSC Divina.

The main sit-down restaurants are the Black Crab located on decks 5 and 6 and the Villa Rossa which is located on deck 6. Both have menus which change every day. Sometimes it’s themed towards whichever port you’re in and other times it’s themed towards whatever festivities are happening on board the ship. The Black Crab also serves a sit-down breakfast every morning. The buffet is on deck 14. It’s usually open from early in the morning until about 1am, with lots of different options changing throughout the day and being an Italian ship, the pizza is especially nice.

It can get a little bit busy especially during lunch so I recommend heading straight towards the back to find somewhere to sit. There’s speciality dining options in Eataly and Galaxy, both have to be booked and there’s also casual dining in La Cantina and the Sports Bar. They’re kinda handy if you want to stay away from the crowd of the buffet during the day.

There’s a number of different bars on board the ship and within the main atrium area you have the Divina Bar on deck 5, the Silver Lounge on deck 6 and the Cafe Italia on deck 7, they’re nice to sit in if there’s something going on in the main atrium. The Piazza del Doge is on deck 6 and that’s an Italian style cafe that sells ice cream and cocktails and different types of coffees. There’s also snacks throughout the day.

And just off that is the Cigar Lounge, it’s the only indoor bar you can smoke in on the ship. The Black and White Lounge is on deck 7 and some of the entertainment happens here regularly throughout the day and also in the evening. The Golden Jazz Bar is also on 7. There’s live entertainment there every evening and during the day it also hosts some of the entertainment especially the trivia and La Luna is also on 7 It’s nice to sit here and just listen to the piano and the singers that they have on, they’re really classy and it’s a really nice place to sit and enjoy that. Then on deck 15, it’s the Garden Bar. This area is reserved for adults only.

It has its own pool and it tends to be busy all throughout the day. The pool bars are located in the Aqua Park on deck 14, there’s two of them. And the Galaxy Nightclub is located on deck 16.

That gets going about 11 o’clock at night and goes on to the early hours. There’s a number of shops on board located on Deck 6 and 7. There’s a sweet shop, the MSC Logo Shop and then shops selling luxury goods such as jewellery, perfume, cigarettes and alcohol. The Pantheon Theatre is on decks 6 and 7 and it really is a beautiful theatre. They put on shows every night and it’s always something different however it can be a little bit samey towards the end of the week. they have some fantastic singers and dancers and then they have acrobats and aerialists and mostly the shows are really well put together.

MSC is also the only cruise line that has opera as part of its entertainment lineup and I’ll be honest and say some of it missed the mark with the audience, they didn’t really get it but when the opera singers were involved in the bigger productions, they really added something to the shows. The casino is on deck 6. I’m a gambler so I can tell you that it was really good if you ever play for example best rated nz online casino etc. And it really popular in the evenings especially.

The Aqua Park is on deck 14 and it gets really busy on sea days. During port days it can be a lot quieter. There’s a lot of entertainment that goes on here as well throughout the day there’s usually full program from the morning right through to the evening. There’s an indoor pool on deck 14 as well called Le Sirene.

I found it a nice place to go in the evening when it tended to be quieter and people were kind of winding down before dinner. There’s another hot tub as well located in the solarium on deck 16. There’s a waterslide located on deck 16 as well if you’re into that kind of thing and it’s beside the Sports Arena where you can play basketball or soccer and throughout the cruise, there’s tournaments organised so if you’re into sports make sure you look out for those.

If you like going to the gym, that’s on deck 14 and it has a beautiful view at the front of the ship. The spa and hair salon are located on Deck 14 and they have really good deals on port days, so if you’re not going on shore or if you’ve got a short excursion, keep an eye out for those There’s a 4D cinema, a Formula One simulator and an arcade on deck 16. And the teens club and the kids club are located on deck 15.

So overall the MSC Divina is a really beautiful ship, it feels luxurious. It’s not really a party ship so if that’s what you’re going for, this probably isn’t for you but for anyone else, I would highly recommend it

Loopholes You Can Exploit to Cheat the System

– [Narrator] We’ve all heard stories about that brilliant person who found a loophole and got a big payday. If you wish it were you, pay attention to these stories about exploitable loopholes. If you’ve ever wanted to eat for free in a first-class restaurant for a year or own a new golf cart free of charge, pay attention to these 10 loopholes you can exploit to cheat the system. – Amazing!

– [Narrator] Number 10. Give him credit for that one. If you’ve ever signed up for a credit card, only to find out your variable interest rate went up or the no interest for six months deal didn’t apply, you probably understand the frustration that led Dmitry Agarkov to pull a fast one on a company called Tinkoff Credit. First, he took the offer they sent him and read it. He decided the terms were unfair, so we scanned it into his computer and changed some of them, including giving himself a 0% interest rate, no credit limit and no fees. Also, he added a $100,000 fine if the company tried to cancel his card.

Then he sent the whole thing back to Tinkoff Credit where it was automatically signed without anyone reading the terms they assumed were the ones they sent out. When they did notice, they tried to back out but a judge ruled the contract was binding since the credit company signed it. No idea of this will work with other creditors, but we’ll give you credit for trying. Number nine, keep getting those student discounts. After paying for college for four years, which for some might include paying back student loans for 40 years, you probably need all the help you can get.

Many people have reported using their non-expiring student IDs to continue getting discounts for years after graduation. If your school allows you to keep the email address they gave you that ends in .edu, you can continue to use that for discounts on some types of software. As for your ID, if anyone looks at it too hard just shrug and say you are going through a phase in freshman year. Nobody looks the same two years in a row in college anyway. Number eight, a first-class solution. The airport is a great place to game the system.

For example, this enterprising boy band member actually managed to avoid a bag fee by wearing every item of clothing that had been in his bag. Hey, he followed the rules of the airline. They apparently think clothes weigh less on the human than in a bag.

On another note, many people have flown first class without even having a first-class ticket. There are a number of tricks to achieve this, but chances are that if the front business and first-class seats aren’t taken and operational upgrades occur, simply asking politely could help you snag a better seat as flight attendants have some discretion over who gets the seat. Even though computers generally allocate upgrades according to flyer miles. But flying first class has benefits beyond roomier seats and better snacks, even off the plane. Many airlines offer free meals in the VIP lounge with a first-class ticket and some people have managed to game the system and eat free for a number of years.

One famous travel hacker, Justin Ross Lee, frequently simply buys refundable first-class tickets. Then chills in the VIP lounge at international airports and eats for free. Before his flight lifts off, he cancels and rescheduled his flight, which he repeats again and again and again. One man in China did a similar thing and the year went by before the airline noticed that he had rebooked a single ticket more than 300 times and never actually went anywhere. Airline officials admitted there was technically no rule against it, but they still confronted him and convinced him to turn in his meal ticket which he did for a full refund. Is that what you call a gravy plane?

Number seven, price glitches. Don’t fly off just yet, there’s another loophole to game the airlines and other businesses that suffer price glitches. Websites like SecretFlying and Airfare Watchdog monitor airlines for price errors, which can result from typos like a $15,000 fare going down to 1500 because someone forgot a zero. Signing up for the sites allows you to get a text or email alerts as soon as an unnaturally low price is found. Airlines aren’t the only companies that have glitches either.

As an unemployed shop clerk in the UK, Ashleigh Swan discovered a few years ago. She now makes a living off her website where she also emails or text subscribers with pricing glitches on everything from toys to boots. She also advises her followers about doubling up on deals and other handy loopholes to save money.

Number six, open a strip club in Idaho. In Idaho, strip clubs are illegal due to puritanical public nudity laws but having nude people on display for art purposes is not. So one clever entrepreneur opened a strip club but handed out sketchpad to customers and called the nude dances art classes. To be fair, some of his patrons actually did sketch the ladies.

And a few of those sketches have made it onto the walls. However, the naked truth is that for most customers the sketchpad is probably just a prop to keep things legal. Number five, hacking vending machines and slot machines. So many people have cheated vending machines by putting their dollar in with tape on one end so they could pull it back out that many of the newer machines have video surveillance or other security systems to avoid this sort of thing. A variation on this trick is also common with slot machines.

Casinos have lost money to people putting in fake coins, using strings to pull their coin back out and even using a light to blind the sensor that tells the machine when to stop spitting out money. These cheese aren’t all low-tech either. A programmer named Carmichael was hired to program slot machines and built in his own special code to make machine payout.

He got away with it for years until one of his accomplices was caught. Other high-tech methods include taking advantage of glitchy machines that respond to certain sequences of code or switching out the computer chips in the machines and using a phony bill validator to make the machine think money had been inserted. Casinos are on the lookout for this sort of behavior and they now know what to look for. So it’s best not to try out these tricks. Number four, buying money to make money. They say you have to spend money to make money, but for one man, all he had to do was buy money to make money.

After the one dollar coins came out, the US government was selling them for a dollar a piece with free shipping. He bought some with a cashback credit card and deposited the coins when he received them actually making money on the deal. Meanwhile, one time offers on anything other than money are easy to exploit.

Some clever people use multiple emails to sign up for multiple accounts and get multiple coupons, free items et cetera. This is common with struggling students, proving you really can learn a useful skill in college. Number three, get a $330,000 house for $16.

Mortgages are a hassle, especially the part where you have to keep paying them every month. Fortunately, many states including Texas have an adverse possession law. This says if the house was foreclosed, whereby the original owner abandoned the mortgage, and the mortgage company closed shop, any person living or squatting there has negotiation rights. All the squatter has to do is pay $16 to file paperwork claiming rights to the property. A man named Kenneth Robinson successfully did this in Flower Mound, Texas in 2011.

Keep in mind that there are a lot of stipulations to this law. And Robinson spent some time researching it and finding the ideal house. If the original owner had paid off the mortgage, he could’ve been evicted. However, if the owner doesn’t step forward and you managed to openly live in your house for a full three years, in other states it’s often seven years, you can claim ownership of the property. Number two, free golf cart.

Tax credits for electric cars are nice but they’re usually not big enough for you to essentially get a free car. But you can get a free golf cart providing you make it street legal by adding turn signals, mirrors, and seat belts. This is due to a loophole in the tax law that bases the tax rebate on the length of time the vehicle’s battery pulled the charge. Golf carts apparently have long-lived batteries.

So a new street legal golf cart is basically free after the credit. This is probably something some politician dreamed up on the golf course, but who’s complaining. Number one, $50 of free coffee at Starbucks.

A few years ago, coffee enthusiasts were impressed by a viral video produced by Beau Chivases. The coffee enthusiast wanted to see if he could order the most expensive drink ever and manage to get a 47.30 espresso by basically adding an extra shot of well everything. Not to be outdone, a Starbucks loyalty member named Andrew, decide to top this by getting more than $50 worth of coffee free.

This was made possible because Starbucks loyalty program gives you your 12th cup of coffee for free. And customers are allowed to bring in their own containers. Andrew brought a 128 ounce clear glass vase and ordered a 90-shot espresso, walking away with a $54.75 free drink which he drank over the course of the next five days. Hey, you have more time for drinking when you’re not wasting time on sleep, right? Anyway Starbucks released a statement saying they discourage this kind of thing, but they haven’t actually stated it goes against their rules.

What crazy item would you use as a drinking container for free coffee? And do you know of any other loopholes that can be easily exploited? If you like this video, please make sure to give it a like and subscribe. It will help keep you notified of our future videos so you don’t miss out on any awesome knowledge. Thanks for watching.