YOU ASK THE QUESTIONS, WE ANSWER 2-28-14 Edition


Q. I like it, I think it looks kind of like a newspaper. I saw that you’re doing some Q&A any chance you could do something explaining options for beginners? What options are how they work? How to take advantage of options? Also stop loss orders or limits, how can you set limits so a stock is automatically bought or sold at a certain level and can you set those orders permanently or does it need to be done each day.

A. Thank you for your question! I understand you want to learn about options and how to set limit orders. I receive this question in my email at least 2 times a week. As much as I’d like to help and teach you everything about options, it’s just too much information for me to feed you. I tell everyone who asks me this to visit these two website, www.Optionmonster.com and www.investopedia.com <– You can learn about limit orders from them as well. These websites give very good information about options. You can’t be lazy if you want to really learn about something! So, grab a coffee or a beer and read as much as you can. THEN, please e-mail me at Rjrc12@gmail.comand ask me anything that you are confused on. I will definitely give you as many examples until you fully understand options. This saves both of us time! Good luck! – Cortes Capital www.StockMarketingExperts.com – Partnered since 2013

Q. Is there a rule of thumb with regards to how long you typically hold a penny stock ?
A. As a penny trader I never hold, as I am usually out of penny stocks in a few hours sometimes minutes! The only penny stocks that I hold  are the penny stocks that have legitimate potential ( Marijuana Stocks)
Q. Can you make money on penny stocks when they’re going down?
A. No. I do not believe there are options for penny stocks
Q. What’s a good amount of money to invest on any penny stock?
A. In terms of the amount of money, I usually invest at least 500$ or I get at least million shares! If you do not buy enough shares commission could eat up all your money!.
Q. How do you guys decide which penny stocks to watch?
A. Always do your research. WE use websites such as http://www.pumpsanddumps.com/ and http://www.otcmarkets.com/home. It is also helpful to monitor boards on http://investorshub.advfn.com/boards/hubstocks.aspx to try to “feel” or “gauge” the markets.
Q.  what do you look for when researching penny stocks?
A. I am a fundamental trader by blood. When I research a stock, I look at its fundamentals and news. Problem with that is many penny stocks can go months before releasing any type of news. After I evaluate the stock from a technical stand point ( using information such as volume, past charts ) to evaluate trends.
Q. What platform do you trade with?
A. I trade with Scottrade.  Cheapest brokerage to my knowledge.
Q. What platform do you prefer?
A. Scottrade but I also like TOS( Think or Swim, it has a beautiful set up) by TD Ameritrade
Q. I have a few questions and appreciate you taking the time to answer them. Do you use one platform for trading or do you use multiple platforms? Which blue chip stocks do you have and would recommend for the long term of 1_5 years? Do you recommend any long term penny stocks? Do you recommend trading penny stocks or do the costs outweigh the benefits usually? What do you think of marijuana stocks in general? Are they good investments or just for day trades? What tips do you have for a new trader that is starting with about 20k. Would you put this while amount in blue chip stocks or do some penny stocks with that amount?
A. I exclusively use scottrade to trade since its the cheapest. I also have TD Ameritrade but I have never placed a single trade. I like TOS but its mostly used for Fundamental trading which I usually leave to @hedgefundccm ( Cortes Capital). The Blue Chip Stocks that I own are TSLA, CMG, DDD, VJET, BA ( not sure if you consider PLUG a blue chipper). Stocks that I would recommend for the long term ( 1-5 years )  are TSLA, FNMA, CMG, BRK-B, ( only thing i worry about BRK is what will happen if Warren Buffet passes away? I do not put a large percent of my funds into penny stocks, the most I will put is 10%. I trade blue chips for the most part but I like investing in penny stocks mostly because of the thrill and how unpredictable it is. A new trader with 20K well my advice would be to only use about 5-10k,  don’t dive right in! Get your feet wet first! I personally made a lot of money from Marijuana stocks but they are all media driven ( regulations and legalizations ) They are hype stocks in my opinion only because they have mostly failed to show anything legitimate at this point. Good stocks if you catch the news! Ride what I call the ” momentum train” Honestly if I were you I would put $5000 into FNMA 2000 into Tesla 2000 into PLUG/VJET 1000 for Marijuana stocks and set aside the rest of the 10,000.
Q.what platform do u use? I use google or yahoo but for penny stocks those line graphs look just flat..
A. The yahoo finance app that is automatically installed on a iPhone is not too shabby. I recommend using Bloomberg, Investorshub Bloomberg and your brokerage for live quotes. I use Scottrade as a trading platform.
Q. Oh and last question what do you usually do with a penny stock that seems to go down slightly? Hold for it to go back up our sell to cut losses thanks. Btw by platform from my earlier post I mean broker. Like etrade or td ameritrade etc.
A. IF it goes down slightly I usually try to get rid of them by the end of the day. I do not know what it is but I despise holding pennystocks  overnight. Also depends how drastic the loss is, if its a 50-75% loss I usually just hold, if its say 10-15% I just get rid of it.
Q. What are blue chips?
A. Blue chip stocks are large market cap stocks, well-established and financially sound! In short they are stocks that are a proven commodity and are stable for the most part.
Q. I’m from Canada, any advice for Canadian brokers? Do they have the pdt rule?
A.No clue buddy, I live in New York City I do not know anything about Canadian Brokerages
Q.how do u feel tesla stock play out? in a year, 2 yrs, 5yrs… should i still hop on that tesla wagon?
A. Yes hop on the wagon but not now. I think tesla will regress over the next few days. From 2-19 to 2-26 Tesla had an unbelivable first they reported good earnings, then Morgan Stanley raised their price target to 320 then   Consumer Reports magazine named Tesla’s Model S as its overall top pick for 2014. There are rumblings about Tesla building a megafactory with panasonic. The factory would help Tesla produce cars at an incredible rate. The best time to get into Tesla at this point is when news about the battery plant comes out. Until then, just be patient and wait for the news to come. Theres a reason that TESLA is already half the value of GM, they have a technology that no other company has. In short TESLA is a great company for the long run
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About Mitchell Fung

Forex ,Stocks & Option Trading Contact Us if you have any more questions. Email- Hereitfirst@gmail.com Twitter- Hereitfirst_ Instagram- Hereitfirst Paypal Email for donations -desiredmaya@gmail.com
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