Heaven & Hell For Penny Stocks

Posted by Kris | Wednesday, November 12, 2014 | | 0 comments »

10 Nov Top Volumes

10 Nov 2014: Penny stocks occupied a majority of the top 20 highest volume in KLCI. Just see the earlier snapshot I took. It was an extraordinary day where all the pennies and super pennies (RM0.10 to RM0.20) surge like crazy without any real reason. (heck surging pennies don't need a reason to go up). It is merely speculation frenzy where everyone is trying to buy high sell higher. Some stocks gained like 43% intraday like NOVAMSC. Heck if you noticed, many of the "MSC" companies (usually penny stocks) shooting up in high volume.

11 Nov: High Volume Penny stocks
11 Nov: Judgement day for penny stocks when the sell-down happens fast and furious the next day. Now the top 20 high volumes stocks are mostly bleeding penny stocks. Obviously the picture snapshot that I took is NOT the top 5 high volume stocks. (See why I did this at the end of the post)

Moral of the story: For newbies and "itchy hand" investors/speculators, it is best to avoid playing the penny game to avoid having a heart-attack or sleepless nights. Just leave these games to the pros.

** I was lucky to be able to exit profitably my penny stock investment on 10 Nov itself, because I saw that the sudden high euphoria will not last long as our current market conditions did not dramatically improve after the Sept & October bloodshed, even though a sharp rebound happened after that. (DJIA is hitting fresh highs this week for 2014). My penny stock is among the ones captured in pictures for both days to serve as reminder to myself of the risks of playing penny stocks. You need to quickly go in and get out as soon as you smell danger.