Friday 27 April 2012

Multibaggers in less than 4 months? Don’t you just love penny stocks!?

Hands up for those who have not played penny stocks before!

Most of us have played with penny stocks starting out – especially when our account was small starting out.

Remember those wonderful and euphoric days? Ah… 

Of course with the highs will come the abyss of abject horror and manic depression…

Nowadays I am a reformed speculator. Although I still dabble in S-chips and penny stocks for a good old swing trade once in a while, I’ve said goodbye to punting on “rubbish” penny stocks.

Recent events reminded me of those good old days:

Jan 2012 = $0.005  
Apr 2012 = $0.15 
3 bagger in less than 4 months! 
$10,000 will become $30,000

TT International
Mar 2012 = $0.05 
Apr 2012 = $0.17
3.4 bagger in less than 1 month!!
$10,000 will become $34,000

Mar 2012 = $0.005 
Apr 2012 = $0.122   
24 bagger in less than 1 month!!!
$10,000 will become $240,000    No, you did not read wrong! Please don’t say SGX stocks hard to find 10  baggers OK?

You can use your broker’s platform or visit SGX website for the charts.

There’s a reason why I ask you to do self-discovery. It’s the same reason why I only mention the “month” in my examples above and not the exact dates.

I hope you can see for yourself whether you have the pre-requisites to play this “punt the penny stocks game”.

You are either the smooth stock operator who knows how to play the pump and dump game, or you are what I wrote about previously:

Have you noticed when you don’t know what you are doing you make money playing penny stocks? Never underestimate beginners luck!

But once you itchy buttocks start to pick-up fundamental and/or technical analysis, you now have no baxxs to play the pennies again. 

It’s like quantum physics – the bloody sub-atomic particles don’t behave like in the real world!?



  1. JEL reached 0.158 lol

    1. I know!

      I deliberately took the lower closing price to illustrate that not everyone can sell at intra day high. But even at the lower closing price there is lot to share around ;)

      By the way, that day was the climatic top for chartist. What a big sell signal!

      Although I do not play pennies anymore, it's fun and good refresher training for me to practice how to spot market tops.

      It's one of the hardest investment decision to make when one of our holdings doubles and then triples. Do we sell or let the profits ride?

      I guess the ability to sense a market top helps... Still learning the force.


  2. haha smol, nice try!

    by the way, sub-atomic particles are real! they are the fondation of everything. we have to question ourself are we living in a real world.

    1. LOL!

      Yes, you have pricked my interest in space and physics.

      Was reading about quantum physics (dumb-down version) and interesting to know that it's possible to be at 2 places at the same time!?

      And when you look at the sub-atomic articles, they behave in a certain way. When not looking at them, they behave totally different!

      Of course it's real! Sounds a lot like me in school.

      Physically at school, but I am mentally elsewhere. And I behave totally different depending whether the teacher has her back on me or looking at me ;)

  3. look, i don't care what the hack, don't trade something if you can't short, period. you woundn't want to play golf with only one hand do you?

    if it is property or stocks where you can't short, just do what CW did, invest.

    1. Thank goodness for CFDs!

      Now SGX encouraging and expanding the shares borrowing and lending scheme - making life easier for shorting.

      I find it a bit weird for people to lend out their stock holdings so others can short their positions!? Huh?

      I guess I have split-personality. Short other people's stocks can; make life easier for others to short my stocks? Wait long long!


  4. For 4% per annum and let shortists shorted their stocks for x days for x dollars interests. No pain. No gain. LOL

    1. CW8888,

      I guess nowadays it's fashionable to chase yields...

      With the expansion of the scheme to REITs, it will be interesting to see which REITs have been swimming naked.


    2. Are these lenders emotionless higher beings? See their stock price fall and no feel sad, sianz or pain?

    3. CW8888,

      I think these people are more likely to be super confident they've bought at the 52 week low and price can only go up!

      Or they could be equity income investors who only care about dividend cash flows and don't practice mark-to-market on their holdings. Only count unrealised profits, but unrealised losses are not part of the accounting vocabulary.


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