Penny Stocks are Ruthless but be smart and they will make your bedrock!  Trading penny stocks is very similar to gambling.  If your smart, think on your own and have a plan, the rewards can be high.  Don’t be a fool and think your always going to be right, because the losses can also be catastrophic if you dont admit when your wrong.  You should never fall in love and marry any penny stock or any of our suggestions, they are not your friends or investments (if you do stay in for the long haul, more than likely they will suck the life from you and leave you penny-less).  It’s always best to take your profits as soon as you realize the gain you want considering such things as key resistance levels as well as limiting your losses if or when support levels are broken.  You must be disciplined if not robotic (Just Do, don’t hope).  Please always remember that timing is everything (a trade may be good only for a few minutes to days) and then again the penny stock may have already run its course and the top penny stock is going nowhere but down (don’t be left holding an empty bag of poop).

Ruthless Penny Stocks to Watch

SKGO @ .0069 (Day # 1 Breakout volume, price and chatter.  Solid uptrend.  Lot’s of attention on this hottie but don’t forget that she is Ruthless and will take your money if you stop paying attention.)

BEDA @ .0024 (Breakout volume and price.)

HPNN @ .0108 (Breakout volume and price.)

CBAI @ .0107 

Don’t be a sheep following the heard.  Do your own homework and have a plan.  Checkout the education section in the category archives for more details.

Penny stocks up and penny stocks down. Which one is next is any one’s guess.  The key to making money in penny stocks is trading the one that has all the attention. This new attention creates volatility in the stock. This volatility is where a disciplined trader (not investor) can potentially profit on a trade.  All the penny stock market players are looking for the same thing…….who is next?….how far will she go up?….how low will she go?……. and when do I get back in so I can do it all over again?

EWKS @ .0004 (Historical breakout volume signals massive attention.  Day #1 of volume and price breakout so good chance she goes higher.  I tried a good part of Friday to buy in at .0002 and couldn’t.  The first time it hit .0004 was all the confirmation I needed to raise my bid.  I up-ed my bid to .0003 knowing I had a good chance that profit takers (up 300% at that point) would push the ask back down.  As expected that happened and my order filled and before long it was back at .0004.  Maybe we see .0003 (ask) again but I’m pretty sure .0002 (ask) is gone for now.)

BZCN @ .0028 (This baby has been on the watch list several times.  Boy I love BZCN she has been so good to me!!!!  What a great stock to trade last week and I still keeping her on my watch list.)

VIPR @ .0019 (Another text book beauty that  has been on the watch.)

KMAG @ .009 (Bounce play.  Breakout volume keyed me in but the price went the wrong direction…..SELLING!  I’ll be looking for buying volume as confirmation to enter this play.)

Where there’s smoke you usually find fire.  Many stocks appearing on our watch list start off with a puff of smoke before turning into a blazing fire.

BLAZING STOCKS STILL ON THE RADAR

• VIPR @ .0016 (VIPR has appeared on our watch list a number of times and was just re-listed on 11/23/09 at .0008 and has moved up 100% since.  Today we had confirmation with breakout volume and price.)
• BZCN @ .0049  (Was re-listed on 11/22/09 at .0013.  Chat, volume and price continue.)
• QEDN @ .0006 (Listed on 5/21/09 at .0001.  Today we hit .0010 (900% move since first identified).  A bit of a pullback today as I was expecting, took some profits and remain in the game for now.)
• FFGO @ .0002 (Well she ain’t blazing at the moment but I still see some smoke so she remains on the list.)

I SMELL SOMETHING BURNING

• SARO @ .0005  (Hasn’t really begun to move yet but I did notice it was able to bust .0004 resistance with breakout chatter on iHub.)
• SKGO @ .0013  (Up 62% today)
• KENS @ .0475 (Up 69% today with a gap up from .028.  Don’t really like buying on gaps, I much prefer to see them pull back and fill the gap.  Breakout volume might signal that this fire is just getting started.)

Last week we identified several top penny stocks on the move that resulted in exceptional profitable trades (QEDN, BZCN, FFGO).  All three remain on the active watch list in addition to a new one.

TIP OF THE DAY (EASY MONEY) – PROFIT TAKING

Taking your money off the table (and some profits) along the way up eliminates your risk.  It is also much easier to get out on the way up instead of waiting for the scared money to run for the exit on the way down.  When a stock is up 700% in days (i.e., QEDN) how can you go wrong by at least taking your initial penny stock investment off the table?  It’s a good habit to start taking your profits by at least selling a portion of your position on the way up.  Yeah, the stock might continue to run to the moon and your thinking you don’t want to miss out and beat yourself up for getting out early.  Well are you going to beat yourself up if you didn’t take your profits when it turns around and goes back down?  So, maybe it’s wise to sell a portion of your remaining position (say 1/3 to 1/2) at each step along the way up because this always keeps you in the game, locks in profits and minimizes your risk (yes it also minimizes your reward but that’s the price of insurance).  How can you be wrong taking at least some of your profits off the table?  No matter which way the stock price goes at this point you will be correct because your still in the game on the way up or you took some of your profits if it goes down. 

WATCHLIST FOR MONDAY 11/30/09

• SYNJ @ .0010 (Volume and price breakout.)
• QEDN @ .0008 (Identified at .0001, remains on the  watch list.  However,  up 4 days now so I took some of my profits and still remain in the game with a portion of my original position.)
• BZCN @ .0035  (Re-listed at .0013 and still remains on the watch list.)
• FFGO @.0002 (Remains on the watch list.)

SureFirePennyStocks continues to identify the top penny stocks in play.  Many of the suggestions have appeared on our watchlist before becoming the hottest and most actively traded top penny stocks.  For example, last week we notified you of IHGP, BUNM and HESG before the ~100 to 300% runs.  This weekend we posted FFGO and BZCN as the top suggestions for this week and they both remain at the top of the buzz cloud with ~50% gains each just today.  It’s our goal to scan the penny stocks and identify good penny stocks to buy and trade.  We then post them on the watchlist so you can do your own research thus saving you time in searching for good penny stocks to buy and trade.  We have no crystal ball, just looking for attractive penny stocks that may yield a profitable trade if timed correctly.  Refer to the Introduction and Educational articles in the category archives for more details about our watchlist suggestions and trading.

TOP PENNY STOCKS ON THE MOVE 

• QEDN @ .0003  (On 5/21/09 I informed you I was entering a position in QEDN as a high risk lotto play at an entry point of .0001 at the ask (there was no bid…which meant you could not sell at that time), today that finally paid off (I continue to hold a position).  Historical volume breakout!!! Price and Chatter breakout today.  This is day #1 so potentially there is a good chance this continues to rock.)
• BZCN @ .0020  (Re-listed on the watchlist Sunday at .0013 (up 53% today).  Volume and chatter continue to propel this upwards.  Not so thrilled about that gap up today.)
• FFGO @ .0003  (Actually placed this on the watchlist page on Friday morning 11/20/09 at a ask price of .0002.  Please refer to my article posted on 11/22/09 focusing on FFGO.  News, top of the message boards chatter, twitter and price move to .0004 (closing at .0003, up 50% today) all tell me this still has interest.)

MORE PENNY STOCKS TO WATCH 

• PMDP @ .0009  (Consolidating and holding .0008 support.)
• VIPR @ .0008 (Watching……..)
• ARSC @ .0006 (Adding to list Tuesday evening 11/24/09.  Volume breakout.  Closed at .0006 resistance (HOD)….watch to see if .0006 can be broken on strong volume.)
• CYBL @ .0004 (Adding to list Tuesday evening 11/24/09. Volume breakout.  Possible bottom zone.  Resistance at .0005)

FFGO is alive again.  Her pulse was non-existent for many months and all of a sudden her heart began to beat with such force that it has attracted much attention.  Some say it’s a miracle others say it’s just another head fake.  I don’t know what the truth is, way to hard to speculate.  All I know is the volume exploded and the hype is on along with message board chatter (positive and negative) and that tells me this is a hot penny stock to watch (for now).  

THREE HOT PENNY STOCKS TO WATCH

FFGO @ .0002 (Placed on my watchlist page Friday morning based on volume.)

Some Pros:  Stock message boards lighting up.  Breakout from flat-lined.  Reports of company e-mail to shareholders I believe is what set this on fire.  FFGO on twitter http://twitter.com/ffgo .  #1 position on iHub message board at the moment.  Traded ~1.6 billion shares on Friday and didn’t close up (that’s not good but tested .0003), however on the pro side……looking back at the chart on 7/16/08 it traded ~924 million shares and on 7/17/08 it traded ~2.2 BILLION shares and at that time the share price also didn’t move past .0002 until beginning a move on 7/25/08 reaching a high of .0009 on 7/29/08.  Thursday and Friday’s volume pattern looks pretty similar to what happened then, maybe history will repeat itself or better.

Some Cons: Don’t know who to trust or what to believe.  Past behavior.  Share structure is huge and not clear what it actually is (supposed to be cleared up soon).  Ummm…this is a penny stock that can be easily manipulated. 

Well FFGO flashed me her goods and she appears hot for the moment.  I couldn’t resist temptation and bought me a piece of her on Friday at .0002 for a high risk lotto play.  It’s a gamble I’m willing to take but didn’t wager any money that I’m not willing to loose.  Maybe I’ll catch a nasty case of the hebbie gebbies or she will be one hell of a ride.  However, you can’t win the lotto if you don’t buy a ticket.  Big question is, what will we find in the bag when it’s opened?

BZCN @ .0013 (Back on the list with volume increase.)

PMDP @ .0011 (Back on the list.  Broke the uptrend but held .0008 support.)

Take some time to do your own research and add a comment below or in the forum.

Top penny stocks to watch.  When you see an increase in share volume along with an increase in message board chatter, it might be a good idea to start paying attention.

HESG @ .0012 (Health Sciences Group, Inc., Breakout price, volume and chatter.  News releases continue over the past few weeks.  5 Billion A/S, 2.2 Billion O/S,  600 Million Float as of March 9, 2009 as reported on pinksheets.com.)

BUNM @ .0001 (Burned Media Ltd., LOTTO PLAY. Chatter and volume.  10 Billion A/S, ~2.7 Billion O/S as of Nov 2007 as reported on pinksheets.com.)

IHGP @ .0001 (Interact Holdings Group, Inc., LOTTO PLAY.  Breakout volume and chatter.  5 Billion A/S, ~3 Billion O/S and ~2.5 Billion float as of July 16, 2009 as reported on Pinksheets.com.)

PMDP is still my #1 penny stock to watch based on a bullish technical chart pattern.  I’m hearing rumors that the chart is now in a downtrend.  I’d like to argue that this is clearly not the case based on my interpretation.  I believe the chart shows PMDP is still in an uptrend with a valid upside breakout from a technical continuation pattern.  In my opinion the uptrend is still in force marked with a period of consolidation defining the symmetrical triangle (continuation) pattern.  Below I provide some of the criteria required for defining the pattern and breakout as well as annotating the chart with this evidence.  Refer to the chart at the bottom of the page.

Basic requirements for the symmetrical triangle pattern:

• To form a trend line at least 2 price points are needed and two trend lines are needed to form the pattern.  The upper line slopes down (with at least two lower highs) and the lower line (with at least two higher lows) slopes up (uptrend) and should extend for at least 3 weeks.  The pattern trend lines marked in blue are shown below.
• As the pattern develops the trading range should tighten (area between the trend lines narrows over time) with declining volume (shown in light green).

Upside breakout is a good indicator of future price direction (not always):

• Ideal breakouts occur about 1/2 to 3/4 of the way through the development of the completed pattern.  Where the two trendlines meet is the apex of the completed triangle. 
• A valid breakout occurs when the price closes above the breakout point and should do so with an increase in volume.  The chart clearly shows the breakout point at .0014 occurred 3/4 of the way through the pattern (in dark green) and closed at .0020 on 11/5/09 with breakout volume, meeting both these requirements. 
• After a valid upside breakout, prices can return to the upper trend line and/or apex (support zone) of the triangle (which looks like ~.0013ish) before continuing in the breakout direction.  On 11/6/09 the price pulled back and bounced off the upper trend line (shown in Red).  The pull back can offer traders or investors a second chance to enter into a trade with lower risk. 

At this time it is my opinion that the current chart clearly shows PMDP confirmed a valid upside breakout from a symmetrical triangle continuation pattern and is still in an uptrend.  The upside breakout may signal a continuation of the current uptrend.  Call me a fool but I could not resist the pullback Friday and added more shares to my position.  Current support zones at .0014, .0013 and the lower trend line (currently .0011).  Please feel free to post your comments.

PMDP has been on my watchlist on and off since 7/12/09 and is my top penny stock to watch for Friday.  I re-posted PMDP again last night 11/4/09 at a price of .0013 and noted the triangle pattern along with resistance at .0014 needed to be broken.  I was fortunate enough to pick up a position at .0005 just at the beginning of the run-up in October and have been holding it since (Yes, I fell asleep forgetting to take my profits the first time it went to .0018 ). 

On the PMDP chart below you can see that .0014 was resistance including several daily high price zones and the triangle pattern (in blue).  Today 11-5-09 PMDP was able to break the .0014 resistance (confirmation to buy signal) to close at .0020.  Closing today above the resistance point of .0018 on strong volume shows great strength.  Watch to ensure the new support at .0018 is not broken (I wouldn’t mind if it came back and tested .0018 again).  Lot’s of room on the upside as the next resistance point is .0040 from December of 2008. 

Are you ready to take charge and run the penny stock game?  Tired of being the one holding an empty bag at the end of the day?  Trading penny stocks is not the same as investing and the rules need to be applied correctly if you want to be successful.  Please read our Introduction and Educational articles in the category archives for some details.

Penny stock trading is a fast paced game, if your not paying attention or you start having a love affair with a penny stock you will end up on a crash course.  A poor execution of a good idea isn’t going to lead to a profitable trade or protect your capital.  I find hot penny stocks then add them to the watchlist waiting for a signal to enter a trade (with a complete plan to lock in profits or cut my loses).  I profited over 100% in just a few days trading MFLI by waiting for the correct time (to minimize my risk).  MFLI appeared on our watchlist for Monday 10/26/09 at a price of .016 but I mentioned to watch to see if .015 support held (which it didn’t).  On 10/26 and 10/27 MFLI broke .015 support but then on 10/28 it cleared .015 (which was resistance) confirming a trade signal (still had some risk).  I filled a position at .016 and closed it this morning at .033 (~106% gain).  I didn’t listen to the hype, I just followed the rules by taking my profits and moved on in search of the next trade.

PENNY STOCK WATCHLIST FOR THURSDAY  11/5/09

First, let me reiterate….these are stocks to watch!  I know nothing fundamentally about these companies.  They make the list only because they appear to be hot at the moment and the chart looks interesting (could be a pump and dump…I don’t know…It’s all in the chart!).  Wait for a signal and have a plan. 

• DUSS @ .049 (Decent volume and up against the .05 resistance.  MACD broke above the 0 line.  News out today.  News letter alerts going out.)
• ZVTK @ .0025 (Volume and price breakout to close at the high of the day.  Breakout chatter.  Press Release.  Support at ~ .0015.)
• PMDP @ .0013 (Looks like a nice uptrend in a ascending triangle pattern.  .0014 resistance needs to be broken.)
• SYNJ @ .0007 (Volume breakout off the .0005 support zone and a Press Release.)
• CHBO@ .053 (488% move today on breakout historical volume day.  Breakout chatter on message boards.  I couldn’t find a press release so I wonder where this came from?  Of course the risk here is high now but still could swing wildly for some profitable trades.)
• IVOT@ .004 (Breakout volume, price and chatter.   Press Release today.  Up against the .004 resistance which was the high back in March.)