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Less than a penny trading


Hello, I wasn't exactly sure where I should post this, so I picked the most suitable forum. I'm sure some of you may have done this, it's where you trade stocks that are less than a cent a share, and rather high volality, sometimes 1900% changes. For instance, I have seen one stock that would jump from 0.0001 cents a share to 0.01 cents a share. Basically, this translates into 10 bucks turning into a thousand. Some of these stocks do this once to several times a day. For instance, one stock with the ticker name ADZR fluctuates pretty regularily between 0.0001 and 0.002, which would be 200 bucks. I personally have some money in this stock.

However, there seems to be a downside to this, The volume of these stocks are not very good. It is very difficult to buy and sell these stocks. The good thing about these stocks is that they are usually very reliable and very predictable, the strategy in this would seemingly be to get people interested in this stock to the point where you could stimulate the volume and get a higher liquidity. I've been playing around with this strategy for a while now, and my greatest obstacle seems to be volume.

If any of you are interested in throwing away a few bucks at the chance to make a couple hundred or thousand, perhaps you could help me spread the word about these kind of stocks, get more people interested.
By the way, I'm pretty new to stocks, so any advise on day trading would be helpful as well.
? No one's interested? Am I doing something wrong? If you're afraid you'll say something stupid, you won't be able to. I'm 18, I'm stupid and inexperienced, anything is words of wisdom to me :P
Watch & follow the market daily,read books, John Persons, John Carter, Mark Douglas, there's a list on this site. Trade a simulator & keep a record of your trades & why you took them. Do that & maybe you wont blow out 2 accounts like most of us before you're profitable, or quit like most people do. Find what works for you & specialize in it, there's no wrong way if you're profitable. Everyone has a different approach to this game. Good luck
quote:
Originally posted by Madnock

...the strategy in this would seemingly be to get people interested in this stock to the point where you could stimulate the volume and get a higher liquidity...

...perhaps you could help me spread the word about these kind of stocks, get more people interested.

I'd do some reading up on the regulations about what you're trying to do. It sounds like what you are doing is either illegal or bordering on illegal. I'm sure that this is banned by some SEC regulation.
Getting people involved in a stock to run up its price so that you can then sell it and make a bundle is called a "Pump and Dump". The people who try to pull off these scams never get to see the money and end up behind bars.

I'm not implying that you're trying to do that.
Like you said you are only 18. think about it, if there were any "sure fire" way to make money in stock trading then that person would become the richest person in the world. It would be like you knew where a huge thick vein of gold was and took a giant dump truck to it and loaded everyday. Look at T Boone Pickens, Warren Buffet, they have lost big this year and if there was a sure fire method they would have known about it. If you really want to play with something that gives you a rush try renting the stock during earning season (starts with Alcoa reporting). By renting I mean buy options on a particular stock reflecting your belief that the company is going to fail to meet, meet, or surpass expectations. It's cheap and if you are right, very profitable. Remember, in trading it's always darkest right before it turns pitch fu#$%&@ black.

Good Luck
darn those regulations haha...maybe u can pay them off ;)

btw im starting to understand the whole most ppl quit or blow a few accounts b4 being profitable...
These stocks move up and down just fine on their own. What I'm talking about is getting enough volume so that I could buy and sell....at all, lol. These stocks are hard to buy and even harder to sell. I didn't think it would hurt to mention the stock to a few people, so long as you don't tell them to buy and sell at certain prices, or w/e. As you can see, it wouldn't take that many people to get the volume up to even 5 million a day, lol. Perhaps it is illegal, idk, get back to me on that Day trading. Thanks.

And thanks everyone for your comments.
quote:
Originally posted by Madnock

...it wouldn't take that many people to get the volume up to even 5 million a day...

That would make it like a pyramid scheme. Only the first in will make money and the suckers coming in at the end would lose out.
I thought that those who were patient enough would buy with a limit order, and those that were impatient would buy at a market order. Those who bought at a limit order would always get the lowest prices, even though it would take a very long time, if ever. Those who bought at a market order risked buying at the higher level when the best avaible price is at the top, from everyone who's trying to sell at that price.

Technically, this would be considered making a profit from other people's mistakes, similar to your pyramid, so I guess it's not all that noble. Sorry to bother you guys about this. Still learning the ropes.
Its good to see young people interested in trading. I wish I had started when I was 18 or so. Just don't let the impatience of youth sabotage your efforts.
Thanks day trading.