well with penny stocks in short and long term time frames. When their is a big play and an issue runs up
with heavy activity, watch for the volume to drop off. It almost always drops off to practically nothing while
prices remain high. This is the time to move quickly because when volume comes back it almost always
plummets as fast as it came up. Determining how the stock trades and what the float is will help you find
the right time frame but generally it will be know longer than a daily chart and no shorter than a five minute
The general and most basic rule for finding market reversals from a technical stand point involves finding
an ascending staircase turning in to a descending staircase. When a high is made and the subject pulls
back, then does not get above that high and falls below the last pull back, we are clearly in a reversal.
When taking profits in a stock on an early morning run be sure to sell while it is moving up. Instead of
waiting on the ask, try to meet them half way as large prints go through on the ask. This will ensure your
profit and also get you a little more than if you waited for the reversal. Remember when using mental stop
losses, showing no emotion is the key to success. Never enter a trade on the market open unless you
think you have a clear advantage. If you need to get out first thing in the morning, at least wait a few
minutes to see what is happening. We always let the market tell us when to trade looking at price and
volume. Try and find the run rate of volume on the NASDAQ and remember that anything over 2 billion is
high. Heavy volume and lower prices is a sure sign to get out immediately, while light volume and mixed
prices indicate a little bit of time on your hands to make clearer decisions.
Remember that trading on the OTC BB is far from regulated and not to expect immediate fills when placing
an order. Of course trading volume in a particular security will affect how fast your order is filled but overall
there is no way to guarantee that an order will be filled. It is still worthwhile to feel out the market in
between the ask and the bid. Even if you don't get filled you will at least get a glimpse into who is bullish
and who is not. In lightly traded issues it is sometimes hard to get a fill, even at an ask or bid price. Just sit
tight and wait, but don't leave the screen with an order in. The slow execution can be an advantage for us
giving just enough time to pull an order out if things turn the other way.
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