Sub 10c medium term trading strategy

[pavilion103]

CL I used to look at these when I first started and then Tech showed me the momentum strategy he uses and I put these aside. Ultimately it's the momentum strategy that will provide me with the more consistent returns so warrants more of my attention.

Coming back to these, I have done so cautiously and with a bit of skepticism. But seeing the potential I definitely consider it worth a small portion of my capital. It's a bit of fun also. I also believe it can be profitable. It's been fun getting back into some of these.

 

[tech/a]

Exactly my thoughts. Clear pyramid opportunities to hammer on that chart. I will be looking to do that in this exercise too.

Hit them hard and really make the winners count!

Will be interested in the stats of this exercise when we have a decent sample size over 6 months to a year.

To be blunt you'll only get on a few a year.
I've had about 5 in 20 I reckon.
Ones that I've started with 100000 and finished with around a million
over a week then got out!

One I remember vividly went from 5.6c to 10c in a day.
I had a sell at 10c which I kept changing as I kept buying.
made over $20k that day--nice! once in 20 yrs.

 

[pavilion103]

Yeh I don't doubt it Tech.

From day 1 in here I've never made this out to be the holy grail of low risk and high returns. It isn't. It's risky. It's unpredictable. Not many will take off. But then again it might not take many to make a profit.

That is a good pay day! I hope for a similar one!!

 

[tech/a]

Yeh I don't doubt it Tech.

From day 1 in here I've never made this out to be the holy grail of low risk and high returns. It isn't. It's risky. It's unpredictable. Not many will take off. But then again it might not take many to make a profit.

That is a good pay day! I hope for a similar one!!

I use the very tight stop method of risk mitigation used in the other thread to "Live another day!"

 

[pavilion103]

I am considering tighter entry on fewer stocks. Then is also have a tighter trailing stop.

I want to test this.

Many more losses. But some HUGE profits. Especially if pyramiding.

I think this can work (occasionally lol)

 

[pavilion103]

CNX - trading halt

Could be good for us. We'll see

 

[pavilion103]

Some shortfall. That word doesn't sound promising. Not sure what impact this will have.

 

[tech/a]

I am considering tighter entry on fewer stocks. Then is also have a tighter trailing stop.

I want to test this.

Many more losses. But some HUGE profits. Especially if pyramiding.

I think this can work (occasionally lol)

Have a trailing stop but ALSO have a price sell order at a spike level.

 

[pavilion103]

What about one like SEN? Wouldn't having the sell limit take us out early without chance to let it keep going?

 

[pavilion103]

Or is that only for larger price spikes?

 

[pavilion103]

SETUP 16 - cancelled - STE

 

[pavilion103]

Didn't get the chance to post up the chart of ADO that we were following.

This was the one that we DIDN't take.

Setup was about 7.5c with stop 6.5c
Up to 11c this morning with an explosive week.
Interesting to track this, as these are the types of ones we are looking for.

 

[pavilion103]

Here is the weekly summary.

The only 2 setups are:
Setup 4
Setup 14

I will be going to India for 2 weeks, so will probably not be back until just under 3 weeks.

I will leave the active ones going, with those 2 setups in place also.

So far is is fairly non-eventful. SDL is going well and with this consolidation I am hoping for a break to the upside to the target of around 21c. That would be a great result if it can breakout of this consolidation.

Disappointed to miss out on the ADO one. It has taken off.

 

[pavilion103]

Just remembered this thread when I saw it advertised on the home page!!!

India really distracted me. The last post was before I left.

I just had a look at the open trades and non of them have performed.
I'll have to update the spreadsheet (will all be losses), so that at least the records are accurate.


With the increased focus that I'm putting on my futures trading, I'm not sure that I have the time or inclination to continue on with this project at the present moment. It's definitely something I would like to revisit, but I need to devote my time to futures for now.

 

[pavilion103]

I thought rather than trading the portfolio which I don't have time for, I can still post any relevant trades/discussion etc for sub 10c stocks.

I haven't looked at them at all, but if I get time to do a quick scan from time to time I'll post.


A bit of an embarrassing situation.
I didn't realise that I still had a buy order for GGX in my real account. It was triggered a couple of days ago.
Bought 2.5c
stop 2.1c
Current 3.0c (stop to 2.4c).

I thought I'd run with it because it looked ok.

Only 1 of 2 stocks that I'm trading right now. Will try and post a chart soon.

 

[tech/a]

These explosive stocks if you can find them early enough
only last a few days before you tend to get aggressive reversals.
I remember a trade 6 or so years ago which I saw taking off at
5.4c and I pyramided through to 10c and got off the lot at 10c
Most 1 day profit from One stock.
I think it eventually was taken over.

 

[pavilion103]

Looking back at some of the speculative stocks that I purchased.
One of them was LNG (not posted in this thread, I think it was before maybe).
I purchased at 32c.

Would have been a handy one to have held onto as part of the strategy outlined in this thread.
$3.14 today.

I think I sold it around 45c or something at the time. I can't remember exactly.

We can never know which one will take off, but it supports the idea that, if in a portfolio of 10, one or two can make it big, with most stocks at breakeven, it can be a very passive way to make money.

When I get some more time, I'll probably take a look back into this again, without putting too much emphasis on it however.