$VMGI Volume alert #VMGI

Hey Players…

We had a nice volume day in #VMGI yesterday. Over 100 million shares for the first time in weeks. 

Yes, 64 million were sells at .0004. But they didn’t even last 15 minutes!! I definitely grabbed a few there. The last time they hit like this, we popped to .0008! 

Looking for a break of the 8s here. The share structure is terrible. So this stock isn’t for those trying to flip for a quick gain. The harder it is to move, the stronger the move is. 

The 52 week high drops every day. 

Time will tell of #VMGI is truly ready to pop. It’s inevitable. It’s just the timing had to be right. 

We are awaiting news and watching for confirmation of the move to the upside. 

I also remain bullish on #BETS 

If you have questions or thoughts, please share them by commenting on this post. 

We will talk again soon. Good luck today with your trading. 

How to turn a loss into a gain

Hey Penny Stock Player! We meet again and in much better shape for our initial alert of #BETS. Why? Well…I played it correctly. This is how I turned my loss, into a gain of 40+%.

But before we get to that, let’s take a look at the previous alert of #BETS.

I initially alerted #BETS at .0016 and took a position myself at .0016. However, it quickly turned against me. And before I knew it I was down at .0014. But the question was why. All my due diligence pointed to an upward swing of the ticker. But instead, it continued to crumble.

To see the history of this alert, click here.

A quick call to the TA or CEO to get an updated share structure would have revealed my folly. Even though they are presented as a reporting up-to-date company, their share structure, as reported by OTCMarkets.com was way off! OTC Markets shows that #BETS has close to 10 million shares outstanding, when it’s actually closer to 600 million.

They also reported that they were finishing a converted note. So, in effect, I entered the position a little to early. I should have waited for the entire note to completely finish converting.

If you want to see the update on #BETS after my alert, click here.

So…before I took action, I was down to .0013. I sold there for a loss of 18%, calculated as (.0016-.0013 = .0003, then, .0003/.0016 = 18.75%).

But I did not give up on the ticker. I kept it on close watch. And as level II shifted back positive, it had been beaten down to .0009. So I bought back in at .001 as it looked like the conversion was over and the ticker was about to bounce.

Of course, you know it did. Today, I sold #BETS at .0016 for a 60% gain. So, in all, I made 41.25% on #BETS. A nice bounce play and a great example of how you can turn your losses into gains.

The key: cut your losses short and let your gains run until they reach your goal. Develop your system and stick to it no matter what. If you have a risk of let’s say 20%, your upside desire should be higher. I usually do double. So if I’m risking 20% in the red, I’m going to try to get 40% gain on the stock.

This method cuts your losses short and allows your gains to make up for it. And as long as your gains are higher than your losses, you will remain green.

For this example, in order to get my 40%, I had to let the stock run 60% because I had already taken close to a 20% loss. I’m not saying that you have to sell at 20%, but if you are going to hold, make sure you average down so you lower our position. If I were to double my position in #BETS at .001, I would have then been holding an average position of .0013. Then I would have been up 23.1% (.0003/.0013).

As you can see, 23% is less than 40%. So, in effect, by selling rather than averaging down, I nearly doubled my profits. There is no right or wrong between these two methods. However, selling not only limits your exposure by cutting your losses, it also affords you the opportunity to buy back in fresh, and if you have the funds, increase your buy in price thereby increasing your money gain and your percentage gain.

So what’s the lesson? Trust yourself! If you feel your call is good, it’s okay to sell out of the position if it turns against you. However, keep it on watch and buy it back when it bottoms. DO NOT get pissy and give up on the ticker and say it’s a POS and bash it. That’s childish and does no one any good. We’ve all see on message boards and social media those traders who got burned once on a ticker and spend the rest of their lives bashing it, right? Don’t be that guy, or gal!

Make the trade. Don’t get emotionally attached to it. Take your loss like an adult. And move on. But trust yourself, develop your system, and follow your system.

There’s no such thing as a bad trade if you follow your system and learn from any mistakes that are made. Hey, sometimes the ticker just doesn’t do what you knew it was supposed to.

To this I say: Get Out! Unless you’re like me and you play these sub-penny trip plays (triple zeroes). The movement is so vast with every tick when trading trips, that, unless the ticker is about to reverse split, there’s no sense in selling if it drops in price. Then again, these are so risky and volatile, there’s also no sense in either entering the position with more than a very small percentage of your capital or selling unless the reverse split is announced because the second you sell it bounces!

Yes…the market knows you’re coming!! …or going.

Here’s the annotated chart of the #BETS trade:

Okay, friends, that is all for now. If you like this post or have any suggestions, comment below and share this post with your friends.

Let Your Profits Get High On Marijuana

Hey Penny Stock Players, DO NOT invest in a single marijuana stock before reading this post!

Weed was initially legalized in the United States by Colorado on November 7, 2012. The moment marijuana was legalized, there were tons of penny stock companies who jumped on the opportunity to promote their stock and claimed to be entering into the marijuana industry.

Many of these companies though were found out to be frauds and have since been penalized by the government and the SEC either through fines or suspensions. But each year, about this time, there’s a new influx of traders trading the marijuana industry, which you will be able to see by the following charts.

Well, my friend, the time is upon us once again as we’ve seen IJJP and THCZ ride this marijuana puppy up to tremendous gains. IJJP ran from .0006 to .006 in a matter of months. THCZ ran from doubles (around .007s) to up to .268 for a gain of 37 times your money in two months.

Now, obviously, you wouldn’t reasonably ride it all the way up. The smart thing to do would be to buy at support and sell at resistance with stop losses in place that also move up as the price moves up. OR, sell a percentage of your shares and ride freebies to a ridiculous gain.

Even by sticking to your system that you’ve developed over time, you could have traded either IJJP or THCZ for multiple support buys and resistance sells.

Now, let’s look at a few charts. Since we started off talking about IJJP and THCZ, we will look at them first.

Here is IJJP’s chart:

IJJP had a small run in March through June of 2014. But the true run didn’t start until November of 2015. Coincidently, the run came after the 50 day moving average dipped below the 200 day moving average and then crossed back up to form a golden cross. But the golden cross means nothing without volume, which, at the time, IJJP had plenty of. Look at that volume coinciding with the golden cross in late October of 2014. That’s a long term buy signal if I’ve ever seen one!

Next, we look at THCZ:

The yellow circle indicates the golden cross and the blue box shows how the volume increased a week or so before the cross occurred. Of course the volume wasn’t out of this world, but it was more than quadruple what had been pouring into the stock.

I did not put other indicators on either chart but you can clearly see there are multiple dips that you could have bought on the way up, if all of your trading rules are met during the dip. However, one indicator, the RSI has dipped almost to 50 before it popped back up for the next leg. Also, check the press releases and news because they often also tell a story.

Now let’s look at the FITX chart:

FITX, as noted by the yellow circles, had two golden crosses; one around April of 2012 and the other around January of 2014. The first golden crossed proved to be profitable despite basically no volume. However, look at how much further the second gold cross ran with WAY much more volume. FITX ran from doubles to 12 cents! I’m sure you can calculate the percentage gain there. And that was in a matter of two months.

The next two charts, MJNA and ERBB look almost identical. Here are their charts:

Okay, so they are not exactly identical, but you can see the pattern. The top chart is MJNA and the bottom chart is ERBB. As you can see, they both had two golden cross with the second one, on both charts, showing more volume. However, MJNA’s first run was massive because it had another influx of high volume before the steam ran out of the run.

The orange diamond on both charts indicates another potential golden cross opportunity. But look at the volume on both charts. It is practically non-existent. You would be wise to wait for confirmation of the golden cross AND for volume before predicting a move north. But keep an eye on them for the interest in marijuana stocks is picking up again.

Finally, we will look at two more charts: ILIV and VMGI. Here is the chat for ILIV:

ILIV has been beat to death. Man, what a dump fest. However, notice how recently the volume has picked up as noted by the blue box. Obviously, check with the CEO and the TA for true share structures and make sure they aren’t planning a reverse split. Also look through the PRs and the News to see if anything positive is in the works. But for a pure trade perspective, if all your rules check out, ILIV might provide a nice bottom feeder bounce soon. Again, I have not done any research on this stock except for looking at the chart. So do your own full due diligence before entering any trade.

And finally, here is the VMGI chart:

Man, this stock used to move on air. The two golden cross proved successful with little to no volume. In fact, the second golden cross came AFTER a substantial move north, also on almost no volume. You ask yourself, why does this stock now require so many more shares traded to move? Because the share has been diluted and as it gets watered down, the price decreases and more shares must be traded to weed out the 1 tick flippers.

Time will tell where this is headed. But if history repeats, VMGI will have a huge run coming.

There you have it. A look at the marijuana industry. Who will provide the next big run? ILIV? ERBB? VMGI? MJNA? Another weed stock? Only time will tell. So keep an eye on the stocks in the sector and follow your rules as you catch the next ride north!

If you liked this blog or have any suggestions, please comment below. And don’t forget to read our other posts and follow us as there are many more posts to come.

Penny Stock Alerts – March 22, 2015: BETS

Our next penny stock alert, since #VMGI is currently channel trading from .0005 to .0008 for consistent 60% gains, is #BETS. $BETS closed on Friday, March 20, 2015 at .0017 a share. However, the PSAR has been riding the top of the price channel for quite some time now and is getting ready to flip back to the bottom as a bullish buy signal.

But before we get into that and the penny stock chart, let’s first look up the ticker symbol $BETS on OTCMarkets.com and click on “Company Profile” to see what its share structure looks like.

Currently, the penny stock #BETS has 2 Billion Authorized Shares and only 74, 721, 445 Shares Outstanding, including only 10, 170, 199 shares in the float. However, if you look closely, you will see that these number were reported in 2014 and 2013.

For an updated share structure, you could easily call or email the company and simply ask. Most penny stock companies are more than willing to update their shareholders with the most up to date information.

With that said, the actual current share structure, according to the T/A for $BETS is still 2 billion Authorized Shares, 543, 163, 216 Shares Outstanding, including a float of 510, 275, 137 shares. Of course the penny stock company has increased their share structure considerably, however, compared to the share structure of $VMGI, $BETS is amazing!

Considering the fact that $VMGI has, according to their T/A, over 4 billion Authorized Shares, 3.2 Billion Shares Outstanding, and a float that consist of most of the Shares Outstanding, $BETS has a much better share structure and can be considered to have a low float. Additionally, according to the T/A, $BETS has plans to reduce their Authorized Shares to 850 Million.

So, obviously, $BETS has a very good share structure and, therefore, trades according and is volatile enough to provide a nice chance to make a profit without much fear of becoming a bag holder. ***WARNING: A low float and great share structure means volatility. In the penny stock world, however, you want volatility because that’s how stocks move.

Normally, we would look at the chart first. However, in this case, we already knew that the chart was great. So now, without further ado, let’s take a look at the chart for ticker symbol $BETS:

By trading $BETS now, we are getting in a little early. The 10 day moving average has not yet crossed up through the 50 day moving average and the PSAR has yet to flip. However, $BETS is now trading in a nice channel which can be seen on the chart from .0015 to .0023 for 53% gain in the channel.

It is safer to trade these channels, buying in at support and selling at resistance, than it is to buy in a penny stock and expect to ride it “all the way up” as we say in penny land. Plus, you never really know if the channel is going to be broken towards the upside or towards the downside. So, remember, if a stock moves up thousands of a percent, still you should buy at support and sell at resistance. If you do not take profits on the way up, you risk losing all your gains.

Unfortunately, OTCMarkets.com has not registered the new or press releases that $BETS has released. Therefore, we go to Ihub.com and search for “BETS”, then click on ‘news’.

Here, we will only discuss the important news releases, starting with this one: On January 26, 2015, the company was issued another 5 million in debt financing which was added to the 100 million that they had already received. On January 30, 2015, $BETS announced that they have enter into an exclusive marketing agreement with Overseas BC marketing, Inc. for revenue sharing and for the use of bitoin.

Then on February 3^rd, they announced that they had a gross profit of over $74,000 for the month of January, their largest ever. On February 30, 2015, $BETS announced their plan to reduce the authorized shares to 850 million. On March 10, 2015, they signed a joint venture to issue bitcoin debit cards and huge news that they had finished converting Redwood Fund II LLC debt.

Then huge news came out on March 16, 2015 that they had just converted another note from LG Capital Funding LLC, which came into effect on March 11. This means that they have fully converted and paid two debtors in full.

There you have it. The chart looks like it provides a great channel trade at the minimum, they are paying off debt even if it’s through selling shares, they are making deals to bring in more revenue and that bodes well for the financial aspect, and the share structure is excellent for a penny stock.

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