To Have and to Hold: It is my personal experien
Post# of 41414
Posted On: 08/03/2014 5:55:03 AM
To Have and to Hold:
It is my personal experience in penny stocks that when the growth of the stock exceeds 10% on a weekly basis, it is better to hold that stock from the very beginning rather than to try to day trade it.
A few weeks back my fiance’ (at that time - she is now my wife) day traded BLTA. In just over a 4 week period she turned a profit of about $60k. However, because BLTA’s growth on a weekly basis at that same time was about 30%, if she had just held from the very beginning, she would have made a little over $200k.
(With penny stocks, the brokerage firms will not give you instant credit on your sales, so you must wait between 3 to 5 days for the funds to clear before you can buy back in. Because of this delay, when buying and selling penny stocks, about the best you can do is earn 10% on a weekly basis. If the stock is climbing faster than that every 5 business days, than you are better off BY FAR just buying and holding. For instance, if you buy on Monday and sell on Tuesday for a 10% profit, by the time you can buy back in again – which is when your money clears on the following Monday – the rise in the value of BLTA during that week could well have been 30%, and although you made 10% originally, you could have made 30% during the same 5 day period had you just held the stock).
She wasn't wrong in what she did. Hindsight is 20/20, and no one could have truly seen those 4 consecutive weeks of 30% gains.
HOWEVER...........
I believe that starting this coming week, BLTA is once again entering a phase of explosive growth. I believe that with all the news that is about to come out, BLTA will see weekly growth of about 30% per week in the next 4 weeks (August), followed by 20 to 25% growth in the following 4 weeks (September).
If that pattern holds…..as I truly believe it will with all the newsworthy events and the upcoming airshow.....then the holders will make at least 3 times what the day traders will make over the next 2 months.
Oh I have very little doubt that EVERYONE here right now will make $, it is just that I believe those who hold between now and October 1 will make a hell of a lot more than those who buy and sell during this same period.
I have nothing to gain or lose by making these statements, but I would truly appreciate hearing your logical thoughts on this topic, so that we all can learn more about trading in penny stocks. From what I have seen, if the growth of the penny stock exceeds 10% on a weekly basis, then you are much better off holding and waiting for that growth to slow down before you begin day trading that stock once again.
That experience – coupled with the HUGE amount of publicity that we all know is about to unfold over the next 2 months – suggests to me that now is the time to
Have (ie: Buy) and to Hold BLTA.
- JMHO……………………………
It is my personal experience in penny stocks that when the growth of the stock exceeds 10% on a weekly basis, it is better to hold that stock from the very beginning rather than to try to day trade it.
A few weeks back my fiance’ (at that time - she is now my wife) day traded BLTA. In just over a 4 week period she turned a profit of about $60k. However, because BLTA’s growth on a weekly basis at that same time was about 30%, if she had just held from the very beginning, she would have made a little over $200k.
(With penny stocks, the brokerage firms will not give you instant credit on your sales, so you must wait between 3 to 5 days for the funds to clear before you can buy back in. Because of this delay, when buying and selling penny stocks, about the best you can do is earn 10% on a weekly basis. If the stock is climbing faster than that every 5 business days, than you are better off BY FAR just buying and holding. For instance, if you buy on Monday and sell on Tuesday for a 10% profit, by the time you can buy back in again – which is when your money clears on the following Monday – the rise in the value of BLTA during that week could well have been 30%, and although you made 10% originally, you could have made 30% during the same 5 day period had you just held the stock).
She wasn't wrong in what she did. Hindsight is 20/20, and no one could have truly seen those 4 consecutive weeks of 30% gains.
HOWEVER...........
I believe that starting this coming week, BLTA is once again entering a phase of explosive growth. I believe that with all the news that is about to come out, BLTA will see weekly growth of about 30% per week in the next 4 weeks (August), followed by 20 to 25% growth in the following 4 weeks (September).
If that pattern holds…..as I truly believe it will with all the newsworthy events and the upcoming airshow.....then the holders will make at least 3 times what the day traders will make over the next 2 months.
Oh I have very little doubt that EVERYONE here right now will make $, it is just that I believe those who hold between now and October 1 will make a hell of a lot more than those who buy and sell during this same period.
I have nothing to gain or lose by making these statements, but I would truly appreciate hearing your logical thoughts on this topic, so that we all can learn more about trading in penny stocks. From what I have seen, if the growth of the penny stock exceeds 10% on a weekly basis, then you are much better off holding and waiting for that growth to slow down before you begin day trading that stock once again.
That experience – coupled with the HUGE amount of publicity that we all know is about to unfold over the next 2 months – suggests to me that now is the time to
Have (ie: Buy) and to Hold BLTA.
- JMHO……………………………
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