Penny Stocks Weekly Free Unbiased Newsletter

One way to forecast tops and know when to take profits is a simple volume technique that works very

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

one.

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.

now When to Sell

Staff