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Twitter Weekly Updates for 2011-12-25

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OTC Stocks and Day Trading

Over-the-counter, or OTC, stocks offer an excellent opportunity to trade them at relatively high frequencies. That is, because many “penny” (OTC) stocks are volatile (i.e. they move up and down in price at relatively greater intervals across a wider price price than their major index brethren), there are more opportunities to trade them for a potential profit over the course of even a single trading day, though it’s often the case that multiple days may be needed to realize truly significant gains from a particular stock.

learn about stock market1 OTC Stocks and Day Trading

Effective day trading requires time and attention.

To truly day trade in penny stocks, it’s often necessary to follow several or more of them at a time so that entry (“buy”) and exit (“sell”) points on at least a few of them can be devised for the day. This is necessary because many OTC stocks tend to trade very lightly, if at all, over the course of single or multiple trading days. Therefore, identify a number of heavily traded stocks (there are OTC stocks that trade in the multiple tens of millions of shares per day, making them good candidates for possible day trading opportunities) to add to a day trading portfolio as well.

A good general rule of thumb when it comes to a trading portfolio, or “watch list” (a term in common use among OTC day traders), is to trade stock in companies that have a daily trading volume of at least 50,000 shares per day and that are relatively volatile in terms of the trading price (they should see enough of a price move, up and down, to justify buying in at one point and selling out at another, higher, point and so on).  Rather than just look at a stock’s one-day or one-week trading volume per day it’s probably best to look over a bit longer time frame of from 1 to 6 months.

It’s also often the case that with OTC stocks, trading volume may suddenly take off but just as suddenly dry up, leaving one with a strong position in a stock that nobody’s buying at the moment, thus tying up precious capital that could be put to better use in another stock. The whole idea behind devising a good day trading program, after all, is to be able to realize a series of “buy low, sell high” profits of one size or another over a day, or several day, trading cycle. Sitting on a stock that’s doing nothing is counterproductive and a poor use of capital when it comes to day trading.

Lastly, always remember that day trading — because it will involve taking positions or even just monitoring many stocks at one time — will require a great deal of time, attention and even a relatively healthy initial buy-in, in terms of money to invest. Though opinion varies, plan on from $2,000 to $4,000 for a good initial capitalization stake for OTC day  trading activities. Plan, as well, on having to check on stock prices very quickly, often at a moment’s notice, which means having access to real-time, up-to-the-minute stock quotes. Such streaming access will allow for almost-instant entries and exits into and away from a stock at the right prices. Of course, much of the above will require the services of a stock brokerage, which is another story for another time.

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Three Different Sectors, Three Different OTC Stocks

Many investors in over-the-counter (OTC) stocks tend to look more at the behavior of a particular stock of a company rather than at sectors, and for good reason. However, it can make some sense to divide investments among several different market sectors (i.e. “tech,” or “energy” or “defense” and the like) in an attempt to reduce the level of risk, which is usually higher when investing in OTC, or penny, stocks.

radar screen Three Different Sectors, Three Different OTC Stocks

Several stocks merit radar screen attention this week.

One way of spreading that risk when investing in different sectors of the broader market, if one has the patience and the skill to pull it off, is by taking a long-term strategy in one stock while playing a daily trading strategy in another, with each stock existing within a different sector. Additionally, adding a third stock — dependent on possible future news of a positive nature and then deciding on the stratagem (long-term or day trade) to employ once news breaks — can make sense for many investors.

Given the above, there are three stocks on our radar this week, each in a different sector and each for a different reason (they’re laid out above). All three, from the looks of each company and the behavior of their respective stock, could just make for a strong candidate for an investor’s portfolio.

– The first, Red Branch Technologies, Inc. (OTC: RBTI), is a company in the security and defense sector. A maker of mobile security systems, ordnance disposal and inspection equipment and UAVs, or unmanned aerial vehicles (a Predator drone is a type of UAV), RBTI opened today’s trading session at $0.012 per share. Given its share price, it should come as no surprise that the company’s stock trades at a relatively light average pace of about 245,000 shares daily.

RBTI, though, has a healthy market cap of over $2.1 million, with almost 193.5 million shares outstanding on an authorized share level of 200 million. In other words, the company’s stock may make for a decent longer-term investment rather than a daily trade vehicle. Its share float stands at almost 127 million. Given the attention paid to homeland security in the United States and around the world, any company that can demonstrate the kind of competencies ascribed to RBTI stands a good chance of growing vigorously over the course of time.

-  The second company, AER Energy Resources, Inc. (OTC: AERN), is one we’ve highlighted in the past, sitting as it does in the lucrative energy sector. It acquired FTPM Resources, Inc., a company specializing in the recycling of used motor oil. Energy, and especially energy companies that can demonstrate a capability to be more “green,” stand a good chance of making a go of things in many parts of the world.

AERN also trades very briskly, with an average volume exceeding 7.2 million shares. Today (October, 24th, 2001), it’s already pushed well past 5.5 million shares and is looking like a strong candidate for a 10-plus million shares traded day. Shares in the company trade relatively dear, and they opened today’s session at $0.0213 per (though they’ve currently been taken down to $0.016 per share via brisk various low-bid strategies). The company has an exceedingly strong market cap for an OTC stock ($29.57 million), and with shares moving so swiftly AERN can make for a well-working daily trading opportunity for a smart and savvy investor.

The last stock on our radar sits in the finance and credit sector, though it’s one that we think may do something once a positive press release highlighting real news is released. Until then, it’s one to keep an eye on, though, with a good entry point of between $0.0351 and $0.0385 at present. It’s also trading relatively lightly, at only 21,000 shares today and an average volume barely exceeding 100,000.  The stock we’re referring to is CFGX (Capital Financial Global, Inc.), which represents a diversified financial services company dealing in both exotic and standard financial instruments (everything from arbitrage to typical finance contracts moved to secondary markets, where they’re bought and sold at various discount rates).

CFGX shares have traded at a 52-week range of from $0.0001 up to $0.025, and there’s certainly room for upward movement, given the stock’s middling share price. With a market cap of about $2.2 million, the company’s also on sound financial footing as well. It could be a good idea to keep this stock, and the company supporting it, on the radar screen.

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Detto Technologies, Inc. (DTTO) One to Watch for Today

It’s a fact of life in the digital age that all computer owners will at one time or another be faced with the need to replace an older model computer — whether desktop, laptop, tablet or any other type of computing device — with a new one. In addition, the need to move valued data from the old computer to the new one always seems to bedevil at least a small portion of computer owners who are swapping out their machines. This is to say nothing of the expense of paying a technician to have it done, of course. Fortunately, easy-to-use solutions do exist, and Detto Technologies, Inc. (OTCBB: DTTO) is a leader in this effort.

data transfer 300x300 Detto Technologies, Inc. (DTTO) One to Watch for Today

DTTO technology allows for speedy computer data transfers.

DTTO is a developer and producer of advanced technologies that allow consumers to transfer their computer data from one computer to another quickly, easily and in a cost-effective manner. The company is also a venerable name, relatively speaking, in the digital services sector, having been founded way back in 1999 — which is an eternity in a market where companies seemingly have average shelf lives of about six months. At any rate, DTTO’s prime data migration and integration product line, IntelliMover, has proven itself to be a popular and essential item when it comes time to upgrade computers and move data.

Detto Technologies, Inc. shares trade on the OTCBB market, and will open today’s trading session at $0.023 per share. Trading at a relatively low average daily volume of about 155,000 shares, the company may be a candidate for a longer-term trading strategy, though day traders appeared to be doing most of the moving and shaking yesterday (October 19, 2011), as the stock experienced a notable high followed by an equally notable dip with a subsequent bounce upwards before leveling off at its present share price.

The current share structure for this Belleville, Washington-based computer service company is also rational and well-plotted, with an authorized share limit of 400 million. Currently, outstanding shares stand at a little over 158 million. DTTO, through its own auspices as well as relationships with other computer services companies, has been making greater market penetration of late, especially as the need to not only transfer data from an older computer to a new one grows but also as the concurrent need to wipe the old computer’s hard drive clean increases, too. Data thieves seem to be everywhere these days, but offerings by Detto Technologies, Inc. and its partners are more than sufficient to prevent them stealing any data off an old or reused computer hard drive.

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Today’s Interesting OTC Stocks

Mid-week in any stock exchange/market is always a time when investors begin assessing how aggressively they want to be over the remainder of the week. Sometimes, investors fall back slightly and consolidate their gains (or engage in damage control of the losses by selling off and trying to enter the market at a lower share price) though other investors will continue onward until the end of the trading week. The below OTC stocks are proving to be very active, both from a trading standpoint as well as in the level of conversation they’re generating, in the markets so far today:

-  Neah Power Systems, Inc. (OTC: NPWZ), which is a maker of high-tech power systems for portable electronic devices such as notebook PCs, is having quite a morning in terms of the volume of its shares that are trading (as well as the chatter about it on a number of OTC bulletin boards and chatrooms). Its share price going into the noon hour (EST) is currently at $0.0105, up 40% from its open this morning, and nearly 8 million shares have changed hands.

The trading volume of NPWZ stock is exceptional today and much higher than its typical average daily volume of 1.04 million shares. It’s also a healthy company that’s sitting at the moment on a $1.30 million market cap, 124 million outstanding shares (on a float of about 77.1 million shares) and an authorized share figure of 500 million, meaning there’s plenty of room for vigorous investing if one is of a mind to day trade stock in this company. Neah Power Systems, Inc. recently released news of a licensing system that will allow its customers to manufacture what it calls “micro fuel cells” for portable electronic devices using NPWZ technology. The company, then stands to reap great rewards from such licensing agreements.

-  Another mobile and social media-type OTC stock that’s doing exceptionally well today in terms of trading volume as well as the conversation about it among traders and investors is Mission Viejo, California-based Godfather Media, Inc. (ENKG), with more 25.5 million shares traded during the morning OTC market session. Shares of ENKG stock are moving briskly at a current price of around $0.0035 per share, which was the price the stock opened up at earlier this morning. The stock has traded as high as $0.0069/share throughout the morning and the afternoon session promises to be just as robust.

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Social media marketer ENKG is having an exceptional trading day.

Expect Godfather Media, Inc. share  prices, though, to rise and fall above and below its open as shares trade hands at rapidly escalating rates. Shares in this company are also trading well above the average daily volume of 3. 60 million. At present, nearly 290 million shares are outstanding, with the company sitting on a nearly $200,000 market cap.

Overall, OTC markets today are moving along at a nice pace and there are likely to be a number of solid entry and exit points for investors looking for ripe day trading opportunities. Given the hyperactive nature of trading in the above two stocks, it would appear they’re more for the day traders out there, at the time, rather than those looking for serious long-term prospects, though a hundred-dollar investment in either company, should their stock rise appreciably over the next 6 t0 12 months, could be a smart gamble.

 

 

 

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Interesting OTC Stocks for the Morning

Several OTC stocks stand out this morning as being ones to watch for possible movement over the short and even long terms. For those inclined to day trading, identifying a hot OTC (penny) stock to work several times throughout the trading day (known as the intraday) at various entry (i.e. buy-in) and exit (sell-off) points can give a leg up in terms of walking away at the end of intraday trading with a nice profit. Minus brokerage commissions, of course. Which stocks are likely to garner attention and, maybe, enough volume to make a day trading program possible? A number come to mind, including one we’ve noted the last week as being very popular among the OTC cognoscenti:

-  Andiamo Corporation (OTC: ANDI) continues to be among the most-discussed penny stocks on the OTC markets, and with an average daily trading volume exceeding 13 million shares, there’s plenty of room to work out numerous entry and exit points in its particular market. The stock opens today’s trading session at $0.0041 per share.

xcmxk11 300x168 Interesting OTC Stocks for the Morning

Andiamo Corporation (ANDI) continues to thrive over the last 10 days.

-  ERHC Energy, Inc. (OTC: ERHE), a Houston, Texas-based independent oil and gas company working on producing energy in the Gulf of Guinea, off the coast of central West Africa, opened today’s session at $0.086 with an almost-immediate entry by investors at $0.090. Though its average trading volume is relatively low at less than 230,000 shares per day, its price per share is high enough to generate nice daily profit for a savvy trader if he or she executes trades at the right time throughout the trading day.

-  GoIP Global, Inc. (OTC: GOIG), a developer, producer and marketer of mobile media services, solutions and tools for brands, agenices, Internet content providers, online portals and entertainment and media companies, is a vigorous daily trader. It has an average daily volume, in fact, exceeding 18 million shares per day. It’s also exceedingly inexpensive to buy, opening today’s session at $0.0002 per share. Over 4 million shares traded in GOIG right at today’s market open, which should give one an idea of how many shares move on a trade. There are over 3 billion shares outstanding, meaning shares are plentiful.

The downside to GOIG is also its upside, of course, meaning the low, low share price. It sits in the so-called “triple zero” zone, which is trader shorthand for a stock with a price of at least three zeros to the right of the decimal point preceding an actual digit (in this case 0.0002). Day traders operating in this zone have to be on the ball and ready to buy and sell very quickly (and usually in large blocks) in order to generate a nice profit for the day. Markets like GOIG’s are also susceptible to a fair bit of manipulation on the part of traders, too, so it’s smart to always be fast on one’s feet when trading a “triple zero” stock.

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