Trades - SING, OPXS, and NEWL

SING - Sold all shares at .0191 for a decent loss.  The stock had a lot going for it, but I noticed a lot of large blocks being placed at the ask.  This ultimately kept the stock from running higher, despite many indicators showing that it should.   Once I realized I was fighting a losing battle, I sold.  This one really cost me though.

OPXS - Sold all shares at .017 for a small loss.  I sold this one to buy more NEWL, which I think has great potential

NEWL - Bought and sold this a number of times for profit already.  I am currently all in at an average of .077.  I think this one has the potential to be a huge gainer.  Could see anywhere from .15 to $1.00 on this one.

Trades - SING & OPXS

SING - Added more shares at .023.  News out today.

OPXS - Started a position here at .0176.  News is expected next week.

Trades - KIDB & SING

KIDB - Sold half of my shares at around .20 for a gain of over $2,000 on those shares alone.  Total gain so far has been over $4,000.

SING - Bought shares at around .023.  If the stock makes it over .025, it should have a nice breakout.

State of Affairs - 5/2/14

Things have improved since my last update, and the account is now at $7,300.  Hopefully, the KIDB breakout occurs on Monday as I am expecting, and the account is back to it's 2 year high in profits.

KIDB

A good day today for KIDB, it closed at .145, up .026.  With buying at the close, the bid/ask was .145 x .15.  Setting the stock up for a breakout over resistance at .15 on Monday.  The chart looks really really good.  MACD has made the bullish crossover, and the volume and price are increasing.  RSI is rising up out of oversold, which is bullish.  See below:

Trades - SING & KIDB

SING - Sold all my shares yesterday at .0145 for a $100 loss.  I did this because, despite the good technicals, there continued to be large block sellers coming in.  Unfortunately, once the one at .015 cleared yesterday, the stock hit .02 today.  That is about a $1,000 opportunity cost.

KIDB - Put my remaining funds into this at .11.  I really like the potential here for a move to .40.  We'll see how that goes.  I would expect a move up soon.

Trade - KIDB

Bought shares at .125. 

State of Affairs (plus trade update)

I have made a number of trades on here, without much of an update.  The account balance was over $10,000 when I started this blog.  Added to all of the profit I made and moved out of the account, that was a 2 year high.  Since then I have lost about $4,000.  That is quite a drop, however, with the way I trade, that can fluctuate wildly.    Therefore, I am not worried about making the money back up.

Currently, I have 2 day trades in 5 days.  One will drop off tomorrow.  The rule, if you have less than $25,000 in your account, is 3 in 5 days.

As of this writing, my holdings are:

1. 200,000 SING
2. 22,500 STTK*
3. $2,700 Cash

 I sold most of my STTK while I was writing this.  Sales price was .0185, so I had a small gain.

Trades - POIL, NPWZ, SING

POIL - Sold all shares yesterday for a small loss.  The stock did not move as I expected.

NPWZ - Sold all shares at .0215 for about breakeven.  The stock made several attempts to get past .025 resistance, and could not do it.  Therefore, the stock will most likely go down and test .018 support soon.

SING - Bought at .015.  The stock is way oversold based on the RSI.

Trades - SPMI & POIL

SPMI - Sold all shares at around .007 for a small loss.  The stock broke it's 20 day EMA, therefore a bounce was not imminenet.

POIL - Bought 10,000 shares at .19.  This stock is way oversold, and was in the .30's not long ago.

Trades - NPWZ & SPMI

NPWZ - Sold a 1/3 at .02.  Will buy back later.  Stock seems to be stuck at this level.

SPMI - Bought at .0075.  Stock is retracing from a spike to .025.  This should be support.

Trades - FRMC, SPMI, NPWZ

FRMC - Sold all shares at an average of around .033.  This was loss.  The stock had good news today, but a very lukewarm response.  I already held it longer than I wanted, and was worried about taking a bigger loss.  All of my funds were tied up in this stock, which meant I had to be more careful.

SPMI - Bought at .011 and sold at .019.  This was a great day trade.

NPWZ - Bought a substantial amount in the low .02's.  Chart is showing that a move above .025 would lead to a significant breakout.  The stock looks like it has bottomed out around .018.

Eductaional Post - Bid Painting

I think people often wonder why they see bid painting (small amount of shares sold at the bid). It is almost never someone just selling their stock to get funds. That’s because many of these trades, minus commission, come out to zero or less.

Bid painting is done to manipulate the price down. However, in most cases it’s not shorters who are doing this when the stock is on the OTC. A lot of times it’s convertible debt holders trying to lower their VWAP (Volume Weighted Average Price).

Holders of convertible debt want the VWAP as low as possible, so they can convert at the cheapest price. Therefore, they will bid paint or knock small bids out to accomplish this goal. A small bid is when there is only a small amount of shares at the bid.

Trade - RITE & FRMC

RITE - Sold all my shares at an average of .0038 for about a $200 profit.  The chart indicated it should go higher, but it was clear there was dilution going on that prevented the stock from hitting my targets based on the chart.

FRMC - Added shares at .036 and .03.  The stock was dropped on low volume.  I still expect this stock to hit the .07 - .10 area.

Week Recap

This has been a good week for me, as on Wednesday I hit a new high in profit gained since I started trading again (late 2012). 

Unfortunately, there were some bad picks this week, but that is going to happen.  The key is to get out before taking much of a loss.  Here were my trades this week:

1. MDNT - Bought at an average of .0228, and sold at .0222.  The stock is selling for less than half that now at .0108.

2. ELRA - Bought at .0122, and sold at .0105.   The stock closed at .01 with a last minute paint job, however, the bid is down around .008 now.

3. NHPI - Bought at .004 last week, and sold at .0045 today.  The stock closed at .0042.  Despite this, I still think the stock can do well, unless it falls below .004.

4. FRMC - Bought at an average of .043. I still own it, and it closed at .04.  This was initially a winner, as it closed at .0535 the day I bought it.  I did not sell because the chart showed further upside.  However, after breaking the previous days high and hitting .056 in the morning, someone dropped 200,000 shares in a market order, and drove the price down suddenly.  This did allow me to bring my average down from .045 to .043, but I obviously would have rather had seen the stock continue to flourish.

The chart continues to indicate a nice rebound coming, at least to the 10 cent level.  The RSI is in the 30's, which indicates the stock is close to oversold.  Additionally, updates from the company are expected soon.

5. RITE - Bought at an average of .0034.  The stock closed at .0037.  It got as high as .0045 this afternoon.   I did not sell then, since the chart indicated we should at least see .005 to .01.  Most likely there was profit taking from those who bought in the .002's the previous few days.

If RITE and FRMC move the way I expect, I should be making new highs next week.

Have a great weekend everyone!

Trade - RITE

Bought almost 600,000 shares at an average of .0034.  This stock has a decent share structure, and a good chart.  It is ripe for a nice bounce.

Trade - NHPI

I sold all of my NHPI for a $200 profit.  The stock is still good to be in, however, it was stagnant. 

Trade - FRMC

I took the funds from the sale of ELRA, and bought 50,000 more FRMC at .0401.

Trade - ELRA

Had to sell all my shares at .0105 for a $350 loss.  The reason for the sell was that .011 support was broken, and the diluter at .0122 never left the stock.  Always follow your rules.  Better to lose $350 and fight again, then lose thousands.

FRMC

This stock is pulling back after going up for three straight days. It's momentum stopped at .056 this morning. That is around where the 20 day EMA is. Usually stocks will initially pullback after hitting that average. Once this pullback is complete, I expect the stock to go above the 20 day EMA.  See chart below:

Click on the chart to make it bigger.  The 20 day EMA is the green line.  This stock is bouncing off of RSI 30.  Stocks that have an RSI of 30 or lower are considered oversold.  This stock has a lot of room to run, and should at least be able to bounce back to 10 cents, but could get as high as .20-.30.  Just depends on news, momentum, possible dilution, etc.  We will stay on top of it.  My entry was .045, and I am willing to add more if it drops a little.  Currently, I do not have funds to add to my position.

Current Positions

These stocks at this time of posting, are good candidates for traders with small accounts:

NHPI - .0045 (current price)
FRMC - .046 (current price)
ELRA - .0122 (current price)

I plan to give more info on these later.

DISCLAIMER

I AM NOT RESPONSIBLE FOR YOUR TRADES.  If you lose money with anything I say, suggest, post, recommend, that is on you.  If I own a position in any stock I write about I will post it.

Some Tips

Here are some helpful hints when having a small account, that you want to grow rapidly:

1. When you have a small account, the best place you can make the most money is on the OTC market.
2. Do not trade on emotion
3. Do not buy your entire position at one time.
4. Do not sell your entire position at once (depending on the situation).
5. Do not buy stocks that are in the triple zeroes
6. Take profits earlier than most are saying you should
7. Cut losses quickly and move on
8. Keep aware of possible dilution by the company or it’s lenders.  You do not want to be in a stock where that is excessive.

Number 3 and 4 really help you abide by number 2.  Unfortunately, it is rare that you will get the best buy or sell price, by not buying or selling all at once, you can take advantage of this.  One of the exceptions to selling in chunks is if you can tell a stock is really going to dive, and you have to get out of there quick.

I will also be putting tips here on how to pick the right stock.  I will also give examples of these stocks when I post.

Some key tips:

1

1. Buy stocks with relatively low floats (100 million shares or less)
2. Do not buy stocks with RSI’s at 70 or above
3. Do buy stocks with RSI’s at 30 or below (however, do not use that as your only factor)
4. Do not pick a stock that has only traded in a narrow range
5. Pay attention to see if the company is diluting, or has lenders that are diluting.  You don’t want to be part of that ( I listed this twice :-)

Remember all of my advice here is geared towards small accounts, however, everyone can benefit.

The smaller the account the more concentration you will have to have.  For example, if you only have $2,000 in your account, you probably can only own one stock at a time to be most successful.  Yes, there is more risk that way, but the goal here is to make a lot with a little.

Lastly, my disclaimer.  I AM NOT RESPONSIBLE FOR YOUR TRADES.  If you lose money with anything I say, suggest, post, recommend, that is on you.  If I own a position in any stock I write about I will post it.

Place Holder

I intend to start adding some content soon, starting with a description of what I plan to do here.