A Cautionary Tale Of The Doubling Stocks Scam - A Newbies Journey
Going from knowing nothing about the penny stock trading industry, to a seasoned daily participant is no easy task. There are a number of major challenges to overcome if you know nothing about the industry. The most basic trap that people fall into, is thinking that its possible to make money without effort or risk. This is simply not true as many people who got caught up in the doublingstocks scam now know. The following instructions come from my friend and associate Sandra Toback, who first made me aware of a solution to this doublingstocks scam, and I have left her comments unchanged as to show what she had to learn the hard way. Each paragraph has a simple but important lessen to be used. Take advantage of her wisdom, and use it with our blessing.
Sandra And The DoublingStocks Scam
Hi my name is Sandra Toback. I am 31 years old and interested in stock trading and investing. I am interested in making big money with small amounts of investment. So during my research I come across a series of paid stock trading services and started following the trades on paper with finance.yahoo.com. While paper trading I come across a series of consecutive winning trades, one after another after another. I decide that I am ready to get some skin in the game. I read the story about ‘Marl’ the stock-trading robot that uses simplistic software to make technical analysis decisions on OTC stock prices. By sorting through the stock volume amounts and following the channelling patterns, this software would alert a trader to breakout stocks on a semi regular basis. This is where the journey for supposed big money starts.
So when you diced to seriously start trading stocks over the Internet, you have to become attuned to certain sources of news on a regular basis. Typically a newbie will register to a stock trading service that will give them time sensitive stock tips. If the proper timing is employed, and a small amount of capital is invested there can be exciting results. This can be a fun experience, especially if you have some basics handled.
The first step to effectively trading with a profit will be using the most cost effective discount brokerage that you can find yourself. In Canada the best for you buck could be a number of services such as: QuesTrade, TradeFreedom, Etrade as well as a number of other emerging services. With trading fees under 20$, a small amount of capital as little as $100 can produce profits with volatile penny stocks. It’s a matter of trading with all the rights strategies in mind.
If you want to maximize the way that you trade based on newsletter stock tips, keep these simple ideas in mind. Lets say that the stock MTTG gets a strong buy recommendation, review yahoo.com stock chart history briefly to get a feel for the stocks technical perspective. Load your brokerage account and check the bid and ask spread on the stock. When you feel you are prepared to bid on stock, calculate your proper asset allocation.
You will always want to use proper asset allocation and risk tolerance for stocks that but solely on recommendation from a service provider. Many experts suggest that you trade no more then 25% of your portfolio on any particular trade at one time. A simple asset allocation would be four stocks that are blue chip for every stock that is a penny stock speculative trade. So if you had $10,000, no more then $2,500 per trade would be appropriate. Once that is settled, be sure to protect your capital with one last tool.
You start buying share of a company with the idea that it will rise in price, or you sell shares when you think they will drop in price. The thing is, what happens when the shares go in the opposite direction as you expected? That’s where you need to be sure to employ STOP LOSSES and LIMIT ORDERS. Be sure to never buy stock at Market Price. Always use limit orders at your desired price. And once you have acquired the stock amount you wanted, that when you set a Stop Loss for the potential loss of 25%-50% of the stocks value (again based on your risk tolerance). This way you are partially protected from unexpected loss.
In the end you will find that the name of the game is just to follow the market. Buy trading stocks on a regular basis you can get a feel for the market and what it takes to make a profit. From using the best discount brokerages that you can find, following the DoubingStocks newsletter, using proper asset allocation, limit orders and stop losses, and never give up. It’s a simple and repeatable process that produces results only after persistence, experience and time are applied. Follow the rules and keep it up. Start with $500 and watch your money grow. Best of luck.
Conclusion
So you see that the process and very simplistic and basic. But don’t let that fool you. What Sandra doesn’t mention is all the lost money and failed trades that happened before she learned these strategies. From buying stock from bad picks, not paper trading or doing research, using bad brokerage firms, not employing proper asset allocation, buying market orders, and forgetting to use STOP and LIMIT orders. The road to successful penny stock trading was not as simple as one would think. Its just like anything in life, if you want a result, you must do the necessary work and pay the price in advance. Such is life.
Peter Hill is an author and penny stock adviser. He and Sandra Toback run an informational website and newsletter with a wealth of penny stock recommendations, strategies and trading guides. Make sure to take advantage of this and much more at http://www.DoublingStocksNewsletter.com
Tags: doublingstocks fraud, doublingstocks newsletter, doublingstocks software, doublingstocks scam
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