how to spot an upward movement in stocks in advance, especially Penny Stocks?
i have question regarding penny stocks, i ve been following market for couple months now, so i am still learning. i have been using charts, i don’t know, if it is quite enough??? any suggestions?
sometimes i see there is no high volume in stocks, and suddenly next day stock is up for 100 percent, and i look for news, and i cant find an answer what caused it? or when they close higher, next day opening price is low? i don;t understand relation?
can anyone help me with that, or recommend me any useful programs?
(programs i don’t mean like finance.google, i mean actual stock programs if there any)
and what do you think of smartrend program?
Read some basic books on Technical Analysis. I believe the “Dummy” series may have one.
My broker, ThinkOrSwim allows you to trade past days… in real time. They also have a paper trading account.
Keep in mind… the last place a novice should be trading is penny stocks….. All you need to learn to trade larger cap stocks is dwarfed by the additional skills you need for penny stocks.
If you don’t understand the basics (like why a stock can close high & open low) then you’re years away from trading larger cap stocks successfully…. let alone penny stocks.
Stock prices are driven by supply and demand. Penny stocks can have very low liquidity… so the demand can dry up very quickly… which means… you may have no one to sell your shares to….. unless you drop your price by…. 10%, 25% or 50% or more.
Once you read some basic books on Technical Analysis….. here’s some more advanced books for you;
MMTC. Penny Stock chart