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Pumped Penny Stocks: Expect the Worst and Avoid Disappointment

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There are so many pumped penny stocks right now. And I love it!

Though recently I’ve come out pretty hard against these stocks that spiked big. Like MicroVision, Inc. (NASDAQ: MVIS) — it went from 25 cents up to $1.80.

AgEagle Aerial Systems, Inc. (NYSE: UAVS) spiked up from 60 cents to $5! And Remark Holdings, Inc. (NASDAQ: MARK) went from 37 cents to $2.60.

All these stocks are well off their highs now.

And these stocks all have something in common: they’re all crap. They crashed just like every other pumped penny stock I’ve ever seen.

Don’t get me wrong, there’s money to be made on all these — that’s why I love them. But are these the type of companies I’m willing to invest in for the long term? Nope, I won’t hold these for more than a few hours max.

But they’re great examples of…

Why I Love Penny Stocks!

© 2020 Millionaire Media, LLC

I’ve made over $5 million trading penny stocks over the past 20 years.** How? I trade by a set of rules. And I focus on trading smart, so I don’t get attached to any particular company or technology.

I’ve traded penny stock pumps for years. This market is no different.

On all these stocks, I went long. I bought UAVS in the $0.80s and sold for measly gains.

With MARK, I bought around 40 cents and sold around 42 cents … It just didn’t spike. On my MVIS trade, I bought in the $0.30s and sold in the $0.40s. It didn’t spike either.

I was on the right track with all of them but missed the giant runups. That’s OK.

The style that I trade — and teach — is to take small consistent profits. The big Wall Street traders love to hate on penny stocks. They say there’s not enough money to be made.

I disagree. I think there’s more than enough for traders like me or anyone with a small account.

Tim Grittani** started with a $1,500 account. He studied and worked his butt off to turn that into over $11 million. It’s more than enough.

Don’t let anyone tell you there isn’t money in penny stocks. But don’t let anyone convince you to invest in penny stocks long term either.

(**Results aren’t typical. Most traders lose money. Always do your due diligence and remember trading is risky … never risk more than you can afford.)

The key to this niche is to…

Understand Why Penny Stocks Move

Stock pumps can take place in a lot of different ways. Back in the day, it was mailers and phone calls. Now it’s mostly on social media.

The methods may be different, but the patterns and the end results are the same.

So pumps are now mostly people getting on Twitter and plugging these junk companies. They say how great these companies are … They’ll mention all these upcoming great deals with big companies.

The rumor of a deal can be a great catalyst. ‘Buy the rumor, sell the news’ can be a strong strategy, depending on the stock. But you have to understand the catalyst is only one piece of the puzzle.

And too often, the information is unreliable — especially if it’s coming from an email or social media post.

I trade these stocks, but I never hold for long. And I never believe any of the lies the pumpers are telling me.

And I use seven indicators when evaluating a trade. Check out my “Trader Checklist Part Deux” to learn what I check for before every single trade.

I say this all the time, but I’ll repeat it again. You have to…

Learn From the Past

© 2020 Millionaire Media, LLC

Penny stocks are super hot, ever since the coronavirus pandemic crashed the overall market. It’s a lot like the cannabis mania from a few years ago.

The vast majority of these penny stock pumps will come crashing back down to earth.

In 2018, pot stocks were surging. Everyone was saying pot would take over, and that all these companies would do amazing things.

But look at pot stocks now. They went nowhere — all the stocks crashed.

So, yeah, I love that these stocks are running. But don’t think it’s based on fundamentals.

I want you to understand right now that you have to be super careful with who you trust.

Here’s a video where I share some stories from people who learned the hard way. Learn from their mistakes. Never believe the stories about pumped penny stocks.

How Can You Find Pumped Penny Stocks?

I use the StocksToTrade social media search tool to look for stock pumps. It’s beautiful — I don’t have to look anywhere else. I used to have to comb through so many resources to find the next pump.

You can filter stocks by price, float, and volume. Always make sure there’s enough volume. I prefer to look for at least one million shares. It’s not an exact science. You may need to look at the dollar volume too, depending on the stock. That all feeds back in the Sykes Sliding Scale I cover in the “Trader Checklist Part Deux.”

All the stocks I mention in this post were trading millions of shares. Now, here’s a question I hear a lot…

(Quick disclaimer: I helped design, develop and have a financial interest in StocksToTrade.)

Should I Invest in Penny Stocks?

I’m going to refer you back to that weed stock article.

But here’s my short answer: learn to trade. Learn how to ride the momentum of these pumps like MVIS, MARK, and UAVS. And know when to get out.

I’m coming out against them now after they already surged five, seven, and 10 times. The pumpers say they’re up due the fundamentals. I’ve been pretty hardcore that they’re not up due to fundamentals.

watchlist banner

Now, I don’t know if these people pushing these stocks’ fundamentals are getting paid — I don’t care. I don’t know if they’re talking to each other and coordinating. Again, I don’t care.

All I care about is the price action. Pumped stocks can surge, but they’re also bound to crash. It doesn’t matter if their ‘revolutionary’ technology is a success.

In my 20+ years of experience, I’ve watched most penny stocks fail.

People ask me, “How can you be so sure?” Obviously, I can be wrong. I can be wrong on any trade.

That’s why I’m always prepared to be wrong. When any trade starts to go against me. I cut my losses — that’s rule #1 — and get out of the trade.

Never hold and hope. Always trade according to a strategy. Hope is not a strategy, and…

Don’t Believe the Hype

tim sykes in hawaii with laptop
© 2020 Millionaire Media, LLC

I go with the odds. And the odds are that these technologies and companies aren’t going anywhere. Odds are they won’t be the next superstar.

MVIS, UAVS, and MARK got tons of hype. Let’s check out what happened with these stocks.

There was a rumor that Microsoft Corporation (NASDAQ: MSFT) was buying MVIS out for $10 a share. But that never came to fruition.

UAVS was supposed to be working with Amazon.com, Inc. (NASDAQ: AMZN) on a big deal. Instead, the CEO resigned.

MARK delayed its quarterly filings. But everyone expected a press release with big news.

Maybe these companies have deals with big companies. Maybe they’re giving free samples to big companies.

The truth is, we don’t know.

The old adage on Wall Street is ‘buy the rumor, sell the news.’ That’s almost what happened here … but no real news ever came.

Which is why you should always…

Expect the Worst From Pumped Penny Stocks

I say expect the worst out of every company, and you’ll never be disappointed.

Yes, that’s a cynical approach. Not every company is trash. And you can miss out on some of the big runups.

But it’s impossible to tell the real from the fake — so I play it safe. And I assume that most of these companies are complete trash and will fail.

Never trust a pumped penny stock.

This mindset could potentially protect you from losing a big chunk of your account on a single trade. And along the way, you must take small profits, cut your losses quickly, and…

Learn From Your Mistakes

I heard horror stories from too many people, especially on UAVS. Some people held right into the conference call. Everyone was expecting a big announcement, something with AMZN.

Here’s the chart from that day:

UAVS stock chart
UAVS chart: 1-day, 1-minute candle, conference call — courtesy of StocksToTrade.com

The day started with a gap up. The price held near the high right up until the conference call at 11:00 a.m.

But the company didn’t announce any good news. Instead, the CEO resigned. Traders raced to sell and the stock went bust. After an hour-long halt from the SEC it finally reopened at $1.50, down from $3.75 before the call started.

If you were one of the bag holders, that’s OK. We all make mistakes.

I make mistakes all the time. But I keep my mistakes small. Small mistakes are OK. Cut your losses and move on to the next.

If you take a big loss, that’s OK. Learn from your experience. But never hold and hope. Again, hope is not a strategy. Is it sinking in yet?

How My Students Trade Penny Stock Pumps

When UAVS crashed after its debacle of a press conference, my students were cleaning up.

Don’t think this had anything to do with luck either. My students have studied these plays, and they knew what to expect.

Tim Gritanni reports making $80K, and Jack Kellogg reports $16K in profits.**

supernova placement

My top students are used to these companies failing. They’ve studied the past and know the drill. Never trust anyone and always expect the worst.

(**Students’ results aren’t typical. These students put in the time and dedication and have exceptional skills and knowledge. Most traders lose money. Always remember trading is risky … never risk more than you can afford.)

Trading Challenge

In a world full of fakers and liars, I’m the real deal. But don’t take my word for it. Check my record. I share my wins AND my losses too.

If someone won’t show you every trade, including their losses, can you really trust them?

But if you’re ready to take your trading to the next level…

If you’re ready to forget everything the news media and talking heads want you to believe about Wall Street … and make a serious change in your life and willing to make sacrifices to live the life you want … Apply now for my Trading Challenge.

Lately, in these insane penny stock markets, people are clamoring to get in … But not everyone is accepted. Do you have what it takes? Find out now.

The Wrap on Pumped Penny Stocks

In today’s world, you’re better off erring on the side of caution.

The big lesson I want you to learn here is to be overly cynical. It’s a smart lesson to learn…

… because if you don’t learn this lesson from me now, you’re likely to learn it the hard way in the future.

Pumped penny stocks are scams. There’s no free lunch. Ever. If you want to succeed in trading, you gotta put in the time and effort to learn the markets.

You can play these pumps, if you’re prepared. Start by studying my 6,300+ videos with a Pennystocking Silver subscription. Level up from there.

Most traders fail. What are you willing to do differently?

What do you think of pumped penny stocks? I want to hear from you about this! Leave a comment below.

The post Pumped Penny Stocks: Expect the Worst and Avoid Disappointment appeared first on Timothy Sykes.



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Manic Monday – S&P 3,000 Holds as We Pass 10M Infections, 500,000 Deaths

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I guess people ignore stuff all the time.

There were 165,534 NEW cases of Covid-19 YESTERDAY – that's double China's TOTAL number of cases yet President Trump still calls it the China virus while China calls it the President's total failure to contain the virus like they did more than 2 months ago.

ALL Donald Trump had to do was do what the Chinese did and what most of Asia did to contain the virus and this never would have happened.  Instead the President ignored the experts, denied the virus was a thread, did not react fast enough or appropriately when he finally did act and TO THIS DAY, he still isn't doing what needs to be done to contain this Global threat and 38,845 people were infected in the US alone yesterday -  HALF of China's TOTAL infections from the "Kung Flu" as the President likes to call it.

Florida, where I live, had a 6.4% rise in infections on SUNDAY – that's pretty much a doubling rate of 10 days!  We are back to a state of emergency a month after opening but everyone knows it's too late – there's really no going back now.  On Thursday, Trump’s administration asked the Supreme Court to throw out the Affordable Care Act, including its protections for people with pre-existing health conditions, in its entirety — despite the president’s frequent insistence that he will always protect such patients. He has never offered a plan to replace the law known as Obamacare.

On Saturday, Trump said on Twitter that he’d win re-election, once again proclaiming that a “silent majority” supports him. He boasted about high television ratings for his recent campaign events and said “these are the real polls, the Silent Majority, not FAKE POLLS!”  Trump has repeatedly said, falsely, that the U.S. has more cases of Covid-19 because it’s conducting more testing for the disease. He’s also expressed skepticism that some of the reported cases are real.  “You’re going to have a kid with the sniffles, and they’ll say it’s coronavirus,” he said Thursday.

DURING a White House coronavirus task force briefing Friday — its first in two months, held at Health and Human Services headquarters and without Trump — the president tweeted a wanted poster for 15 people who allegedly
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The IPOX® Week, July 6, 2020

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  • Key IPOX Indexes surge. IPOX 100 Europe, (ETF: FPXE) and IPOX International (ETF: FPXI) close week at all-time high.
  • IPOX 100 U.S. (ETF: FPX) adds +3.79% to +6.33% YTD. IPOX International (ETF: FPXI) surges +4.21% to +31.10% YTD. IPOX 100 Europe (ETF: FPXE) gains +3.81% to +10.92% YTD.
  • Hong Kong set for flurry of deals this week.

Key IPOX Indexes surge. IPOX 100 Europe, (ETF: FPXE) and IPOX International (ETF: FPXI) close week at all-time high. The key IPOX Indexes surged last week as: 1) U.S. technology stocks staged another strong technical reversal with the Nasdaq 100 (NDX) closing the week at an all-time high amid 2) Stable U.S. yields despite strong U.S. unemployment numbers with U.S. equity risk declining sharply (VIX: -20.30%). In the U.S., e.g., the diversified, broad-based, FANG-free IPOX 100 U.S. – underlying for the $1.4 billion “FPX” ETF – added +3.79% to +6.33% YTD, lagging the S&P 500 (SPX) by -23 bps. on the week. Here, 81/100 portfolio holdings rose, with the average (median) equally-weighted stock adding +3.20% (+3.35%). Gains extended to the IPOX Indexes focusing on non-U.S. domiciled stocks trading in the U.S. and/or abroad: On the international level, e.g,. the IPOX International (ETF: FPXI)- underlying for the fast-growing $141 million “FPXI” ETF – added another +4.21% to +31.10% YTD, a fresh all-time high, and now a massive +4270 bps. YTD ahead of the MSCI International (ex. U.S.) (MXWOU), the funds benchmark. A big week for the IPOX China Core (CNI) and IPOX Europe (ETF: FPXE) drove the strong

Rotation matters: IPOX International (ETF: FPXI) since 2015

showing in the “FPXI” ETF with continuing gains in the “New Generation” of stocks underweight or ignored in the stale global equity benchmarks, including recent IPO Swiss-based biotech ADC Therapeutics (ADCT US: +18.31%), Sweden’s B2B live casino solutions provider Evolution Gaming (EVO SS: +14.31%), Saudi Arabias health care services provider Riyad-traded 03/20 IPO Dr. Sulaiman Al Habib Medical Services Group (SULAIMAN AB: +13.01%) or H.K. traded “hot pot” restaurant supplier Yihai International (1579 HK: +12.13%). Health care services provider 1 Life Healthcare (ONEM US: +20.09%), CA-based insurance provider Palomar Holdings (PLMR US: +11.34%), drug discovery software maker Schrodinger (SDGR US: +9.66%) and Spin-off refrigeration solutions provider Carrier (CARR US: +9.25%) ranked amongst the best performing portfolio holdings in the IPOX 100 U.S. (ETF: FPX) last week.

Select IPOX® Indexes Price Returns (%) Last Week 2019 2020 YTD
IPOX® Indexes: Global/International
IPOX® Global (IPGL50) (USD) 4.69 27.93 26.44
IPOX® International (IPXI)* (USD) (ETF: FPXI) 4.21 31.37 31.10
IPOX® Indexes: United States
IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX) 3.79 29.60 6.33
IPOX® ESG (IPXT) (USD) 4.83
IPOX® Indexes: Europe/Nordic
IPOX® 30 Europe (IXTE) (EUR) 4.33 34.55 22.00
IPOX® Nordic (IPND) 4.99 38.52 28.80
IPOX® 100 Europe (IPOE)* (USD) 3.81 30.97 10.92
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) 0.23 4.41 14.49
IPOX® China (CNI) (USD) 5.01 26.31 35.33
IPOX® Japan (IPJP)** (JPY) -1.14 37.91 -2.25

* Basis for ETFs: FPX US, FPX LN, FPXE US, FPXU FP, FPXI US, TCIP110 IT and CME-traded e-mini IPOX® 100 U.S. Futures (IPOM0). Source: Bloomberg L.P. & Refinitiv/Thomson Reuters. For IPOX Alternative Strategies Returns, please contact info@ipox.com

IPOX-linked ETFs (FPX, FPXI, FPXE) Movers (Last Week in %):
TESLA (FPX) 25.94 JOHN LAING (FPXE) -15.37
ZUR ROSE GROUP (FPXE) 20.42 ZOOMINFO TECH (FPX) -12.64
1 LIFE HEALTHCARE (FPX) 20.09 CLOUDERA (FPX) -10.37
ADC THERAPEUTICS (FPX) 18.31 ASTON MARTIN (FPXE) -7.27
EVOLUTION GAMING (FPXE) 14.13 SLACK (FPX) -6.82
SHOPIFY (FPXI) 13.18 WUXI BIOLOGICS (FPXI) -5.75
DR SULAIMAN (FPXI) 13.01 MYOKARDIA (FPX) -4.43
YIHAI INTERN’L (FPXI) 12.13 KOOLEARN TECH. (FPXI) -4.25
SHOP APOTHEKE (FPXE) 11.92 FJORDKRAFT (FPXE) -4.04
SEA (FPXI) 11.81 MEDACTA GROUP (FPXE) -3.73

IPO Deal-flow Review and Outlook: Dun & Bradstreet, Lemonade, and Accolade kick-off July with strong debuts. After holiday, U.S. IPO market set to slow, while Hong Kong sees flurry of deals. At least 9 sizable IPOs commenced trading across the global regions last week, with the average (median) equally weighted deal adding +80.70% (+55.68%) based on the difference between the final offering price and their respective market’s close. Data and analytics veteran Dun & Bradstreet (DNB US: +23.18%) returned to the public with a solid debut just 16 months after taken private by private equity. Unicorns Softbank-backed insurtech Lemonade (LMND US: +139.34%) and health benefits platform Accolade (ACCD US: +35.00%) also soared, while Korean biotech SK Biopharmaceuticals (326030 KS: +236.73%) and massively oversubscribed Chinese medical device maker Kangji (9997 HK: +112.54%) more than doubled abroad. Amid the 4th of July week-end, no deals are scheduled for the U.S. market , while H.K. enters the busiest week since the pandemic with 9 IPOs scheduled with e-cigarette vaping device maker Smoore (6969 HK) lined up. Other IPO news include: 1) Apple device software management company Jamf and fintech unicorn nCino filed for U.S. IPO 2) Brazilian online education platform Uniasselvi revives U.S. IPO plan 3) China Bohai Bank to raise $1.85B in HK’s biggest offer YTD followed by beverage giant Wahaha‘s $1B IPO plan; 4) Online used-car seller Shift to go public in reverse merger.

The post The IPOX® Week, July 6, 2020 appeared first on Low Cost Stock & Options Trading | Advanced Online Stock Trading | Lightspeed |.



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The Rise of Grocery E-commerce and Returns

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Grocery e-Commerce as a temporary change…

As a global pandemic and quarantine swept the world, consumers fled to grocery stores to stock up on essentials. Then ensued the shortage of items like toilet paper and hand sanitizer, and purchases of items such as fresh produce spiked by as much as 600%. As quarantine regulations went into effect, shoppers started opting for online grocery orders rather than going into the physical stores, creating a surge in grocery e-commerce. So much so that Instacart—the San Francisco-based grocery delivery service—had a sales increase of 55% in the month of May; a 30% increase from February that has allowed it to secure a $225 million in new funding to scale its operations. 

The future of grocery e-commerce 

So, what does this translate to in the grocery e-commerce landscape? As it turns out, about $38 billion. In 2019, online grocery orders increased by 22% and accounted for about 2.6% of U.S. food and beverage retail sales. But recent figures show that in light of the pandemic and consumer purchase shifts, these same orders are expected to surge to about 40% in 2020, bringing the projected growth in online grocery purchases to 3.5%—or roughly $38 billion. 

Without a doubt, the impacts of COVID-19 have been felt across all sectors of retail, and consumer shopping habits are changing. In fact, whether we look at actual online grocery orders or plans to place online grocery orders, both figures have more than doubled in the last two years. 

Year Purchased groceries online in the last 12 months  Planned to purchase groceries online in the next 12 months
2018 23.1% 25.8%
2019 36.8% 39.5%
2020 52% 62.5%

But what about grocery returns? 

Remember those purchase spikes we talked about earlier? Well, considering the fact that grocery stores remained open and supplied with most items during the quarantine, how much of that over purchasing was necessary, and how much of it will be returned? On the other side of the purchase boom, there is typically a return boom. Over the past several months, items of various types have sold out, such as hygiene products, canned, and bottled goods. So, with a surge in grocery e-commerce fueled by a global pandemic, what will happen with the items that consumers over-purchased and no longer need? 

As quarantine restrictions ease, different retailers have updated their return policies. Costco is not accepting returns of toilet paper, paper towels, sanitizing wipes, water, rice, or disinfecting spray. CVS on the other hand, has stated that “Most new, unopened items purchased from CVS Pharmacy or CVS.com can be returned to any CVS Pharmacy store within 60 days.” Walmart is restricting returns of essential goods, but is also recommending that consumers start a return process online—for products in any category. And grocers in Michigan are now accepting can and bottle returns

What Can Grocers Do?

In a world where a global pandemic has created a pathway for grocery e-commerce to thrive, grocers need a liquidation solution to sell overstock items that can no longer be sold in grocery stores that extends beyond their omnichannel strategies. That’s where B-Stock can help. We provide retailers a private, online marketplace to auction off their returned and overstock merchandise to a large network of vetted business buyers from all over the globe. It’s why nine of the top 10 U.S. retailers are currently using our solution to offload their excess inventory—regardless of product type. 

If you’re ready to tap into an e-commerce solution for your excess grocery products, request a demo.

Request Demo

The post The Rise of Grocery E-commerce and Returns appeared first on B-Stock Solutions.



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