I work most days in a swimming pool service and repair company that I have owned for the last 16 years and let me tell you water in a 105 degree desert this time of year is verrrry popular. It’s just that brain cells are at a premium to the man who roasts them in that kind of heat everyday. LOL! So I haven’t been avoiding you I’ve just been incredibly busy. Enough said.

The bottom line is my TAM account is stuck. Until one of these little gems decides to run a bit I am going to hold on to them. My thought at this point is, that since I have fallen a bit behind the weekly chart I need one of these little penny monsters to take off and deliver 50 to a 100% kick to get my game back on track and I am confident that they will. I could sell and move on but please…don’t get me started on that lack of time thing again OK.

On a bright note I have been killing it with my newest system for qualifying picks. You really should stop by the TAM chat and check out some of the calls. Just about all are posted in advance and many are delivering great gains. Now calling big runners is not necessarily my goal, and I am usually not a day trader, matter of fact I usually bail out well in advance of any of the huge run ups completely satisfied with somewhere around 30% Although it felt great today to pull off 72% gain with CNB this morning before running out the door. And it was kinda cool that about ten minutes before that, that I grabbed a 55% pop on HAYZ. Sadly I didn’t buy any EGT but I did alert it and pick it for the TAM weekly pick and according to my screener it ended the day up 169% YIKES! lol! My LEE alert turned out to be knockout pick for TAM last week and even BKUNA delivered the prize, though it was a little smaller than anticipated…but hey what the hell I’ll take 10%, after all isn’t that what the TAM game is all about!

So, long story short TAM game stalled a little but pickin winners like a madman right now and lovin it!!! Hope to see you soon, so until we meet again, as always…

Knock em dead and let’s get that million just so we can say we did.

dacuco

Investor/Speculator - An investor is an individual who commits money to investment products with the expectation of financial return. Generally, the primary concern of an investor is to minimize risk while maximizing return, as opposed to a speculator, who is willing to accept a higher level of risk in the hopes of collecting higher-than-average profits.

dacuco’s penny definition - When two people get married they generally will, in a very serious manner, weigh the long term benefits and consequences of the relationship…companionship with someone they love, great sex for a lifetime (OK, I know - work with me here! lol) solid financial possibilities, two loving, caring and giving individuals sharing in the responsibility of raising beautiful, successful and well balanced children, etc. etc. Now of course relationships like investments can fail but the time given and energy spent in the process of courting and choosing this mate should be taken very seriously so as to eliminate as much of the risk of failure as possible. This is the investor!

dacuco’s penny definition - The speculator is more like the guy who watches girls all night at a bar, paying special attention to the ones that are drinking tequila shots, laughing louder, smiling more, dancing more erratically as the night goes on and rarely with the same guy but somehow remaining steady enough to stay on her feet. Meanwhile two martinis later he’s viewing the world through martini lenses and noticing just how much more beautiful all the women have become. Well with this kind of solid research, sometimes it all works out and manifests the story and experience of a lifetime, and at other times…well you know, he may get something else that demands the immediate attention of a doctor. So is the life of the speculator… higher risk for potentially greater rewards!

The point very simply, in my opinion is, that you CAN’T research, pick or play a penny stock like a big board stock.

The investor may want instant gratification but will generally be equally pleased with the slower and more steady growth of their porfolio along with the comfort and safety of a solid pick and trade. The speculator on the other hand wants his gratification now and is at times willing to sacrifice caution and sanity for possibility!

If we can find were we fit in the scheme of  investor/speculator then we can determine how we trade.

The big board investor generally doesn’t and shouldn’t expect his due diligence on a stock pick to produce a 35% run in a short period of time, though certainly it can. The speculator in contrast, shouldn’t expect his pick to continue to produce profits more than a day or two and in many cases far less than that, more like an hour or two. So were do you fit?

A Few Tips For Trading Pennies:

#1 - For anyone that follows me I hope you have noticed I like the middle. Enough time given to research penny stock to eliminate some risk but not so much as to paralyze myself with fear. Analysis paralysis will rob you of opportunities and can take you to a place were no trade is safe enough so therefore no trade!

#2 - I don’t chase runners (you can usually find a place to take your profit and then buy back in on dips or try selling a portion to recover your initial investment and hold the rest to see if continues up)

#3 - I am always satisfied with 20 to 30% profit on a penny stock even if it continues up well beyond that. I try to always remember that in penny stocks no loss is a win!

#4 - Though not always possible I try not to hold (now in the TAM game playing with limited funds at this point it will not always be possible to get in and out that fast) but the principle is sound. I find it amazing when newbs tell me they didn’t sell for 50% profit on a penny stock because they wanted more or just weren’t paying attention. YIKES!

#5 - I’m generally not trying to find the next Microsoft in a penny stock (There are far safer plays for that above $5.00 a share) but I do accumulate some left over penny stock with the realization and expectation that most or all of these “companies” will be valueless or won’t even be around in a short time.

#6 - If I am stuck in a stock too high, that generally means I’m watching it very closely. If I notice that even though it has dropped significantly it has begun to trade in a channel, I may buy and sell that same stock several times at the lower prices as it bounces up and down in retracement inside that channel. Then the the shares that were purchased too high are averaged in and are generally no longer of issue.

———————————————————————————————————-

OK…That’s enough for now. I think it’s time for a martini so feel free to raise a glass with me and if you should have any comments you’d like to share, nows the time to post them…because you know I’d love to read them through these martini lenses.

Cheers to all and I hope that you’ll find that comfortable place where you belong, that winning place that exists somewhere between the realm of Investor/Speculator… and that when you do, it affords you great and sustainable success!

So until next time!

Knock em dead!

dacuco

Now with tongue firmly planted in cheek, let me go over a few penny trading terms and their definitions that I hope all penny traders will find of value.

Caveat Emptor - Latin for “Let the buyer beware”

dacuco’s penny definition - The 23 yr. old president of the company went to a strip club on commingled funds, passed some inside information to a topless cocktail waitress,  forgot how to get home and left the disclosure documents that would allow the company to become compliant with the OTC Pinksheet market in her car, but that’s ok because the company doesn’t really own anything to disclose anyway and he’s going to be too hung over to do it in the morning, so the hell with it lets just release a company PR and run the stock price up a penny.

Spread  -  The difference between the bid price and the ask price.

dacuco’s penny definition - This is much like the crash instructions you might receive on an airplane. You can buy the stock at the higher ask price and sell it one second later for the lesser bid price, then have the extra indulgence of paying a commission on top of that. So basically sit down,  spread your legs insert your head between your knees and kiss your ass goodbye unless you pick the right play.

Weeeeeeeeeeeeeeeeee - Commonly used in chat rooms or message boards to express jubilence during a successful trade, when the issue being traded has a significant and ongoing increase in price per share.

dacuco’s penny definition - This is a code used to signal all new investor/traders that the stock has run up way to high already and that you should call all of your friends and relatives and buy in right now at the very top, so that all of the traders who know better will have someone to dump all of their over inflated stock shares on.

Last but not least, that’s right you guessed it…what it else could it be! LOL!

Pump & Dump - This is a penny stock trading strategy where the prices of the penny stocks usually rise very quickly because of hype, and then falls dramatically when the pumpers unload their stocks at the inflated price.

dacuco’s penny definition - This is simply the eye and lip tremors you experience along with heart palpitations and excessive sweating, as well as a severe case of irritable bowel syndrome when you realize (though not exclusive to - this mostly happens to college students) that you have to call your parents because you just lost the entire amount of this semesters tuition.

So there you have it the first installment of “dacuco’s penny definitions for the penny trader”. I hope you enjoyed it and that through the humor you might have grasped the important underlying truths that could help save or make you a couple of extra bucks on your next trade.

Hope you’ll check back again…so until the next time.

Knock em dead!

dacuco

On the other end of the spectrum you have the penny trader who has a tendency to get bored very quickly, gazing blurry eyed at the computer screen while an extended conversation ensues about the solvency or liquidity reported in a companies earnings statement.  As Mr. Penny observes a trade or the preliminary research on that trade for a big board stock he quickly is assured that there would be no further need for valium in the world if he could just introduce this process to those in need of the drug.

We Don’t Trade Companies We Trade Tickers!

The penny picker can reel off tickers a mile a minute but notice the hesitation when you ask them the name of the company. LOL! Hell, many of the times I’ve had successful trades I didn’t even know what the company did! Well that’s why I’m standing up to take a stand for all you crazy, gambling, penny pushing fools and try to briefly explain why we find this, as fascinating a technique of trading as any other. 

You see what is hard for the person of a keenly analytical background to understand about the penny trader is, knowing that a company is broke, has no employees, a small work space with limited equipment and a PO box somewhere in Las Vegas, how can you take that risk. How can you believe that a successful outcome is possible more times than not. It doesn’t make sense and it has to be gambling!  

The Psychology of the Trade

I won’t spend a lot of time to explain the way we check charts for indicators and patterns that might signal an upward trend or how we discern the potential impact of news and volume in that selection process.  All of that could possibly be for another post. Instead I would just like to say that it has been my observation of the many penny traders I have known, that there appears to be a dominate single link that  binds us all together. We see ourselves as dedicated specialists in the art of the psychology of the market, sharing an ability that calls into use areas of human experience and psyche that signals to us why, when and what we should buy. Then it triggers inside us again…indicating when the correct time arrives to successfully exit or re-enter a particular trade in a way that will be beneficial to the positive outcome of that trade. We realize that it is usually the new, the late comers or the ill prepared that will ultimately get stuck at the top of a penny trade, and lord knows we’ve all spent our share of time in that unpleasant position, but that it is certainly the price we all must pay for our education. We want everyone to profit and no one to be hurt but as a benefit of the afore mentioned education, just maybe the penny trader has developed a greater sense of survival which in turn helps us determine when to get in and out of a trade.

So is it possible that we could have much to learn from, and too teach to one another? Just think what a powerful tool the accumulation and implementaion of the big board technicians expertise joined together with the penny players knowledge and awareness of the psychology of the market could be, on the journey to our mutual goal of increased wealth. Well guess what…that is exactly what TAM has been for me. The marriage of these two very different trading techniques into a killer TAM system and group that is available to be used by all!

I hope that you might glean something of value as you trade along side me and that you will accept my sincere thanks for all I have learned from you!

So lets knock em dead!

dacuco

No stock based blog post from me today but I’d like to send out a “Job Well Done” to Orion on his latest post. The content and time that he contributes shows exactly why I believe the TAM consortium is one the best stock based groups that one can participate with. In my opinion the knowledge and diversity, and the willingness to share it places this group a cut above the rest! Thank you for being a part of it and if you haven’t yet, come visit us in the chat and you will see exactly what I mean.

Have a blessed day!

Knock em dead on Monday

dacuco

This week I’ve really learned the hardest part of trying to do TAM is staying within the self imposed cash limitations. I can see how many new investors/players could get very discouraged and ultimately get swallowed up very quickly. No extra capital to double up or down with, to pick up the slack on a volitile stock pick like PGYC. Outside of TAM it’s very easy to throw some extra cash at a stock that has fallen but still has volume coming in as it pops up and down in a channel as they usually do for a few days. That way you can make up your loss quickly as you buy it again at it’s new low, and sell it as it retraces up to a higher level. In TAM with the aforementioned limitations, you might get the opportunity to do that once as i did with PGYC, buying it originally @ $.074 and the again @ $.033 for an average of .056 overall. However playing within these limited parameters, I found myself unable to take advantage of at least five opportunities where an easy 20 to 30% profit could have been realized on PGYC and alas when all is said and done I am still holding and down -40% on PGYC as of this writing. Being an optimist I have set that little lady aside for now and decided to let her do a little resting and cleaning up before she comes back to rock n roll again next week. She clearly could break my heart… but with these pennies it’s amazing how quickly than can recover and get sexy all over again. We will wait and see!

Speaking of fickle, I found the 300 shares of WGAT that I was holding and had bought for $.037 a share to be a bit slow for my tastes so I booted it down the road to free up some cash for $ .0285 a share and a loss of -30 %. I instantly threw the money I recieved from that sale into a much quicker date that’s far more my style, by the name of CNVC.  Thats right back to my old friend that delivered the only profit (+29%) for me so far in the first two weeks, 7500 shares @ $0.01 and as of the close she’s sitting at $0.012 and rumor has it she’s getting promo’d next week. Now that’s pretty!

So as much as would I love to have been introduced to you as the TAM rockstar that jumped right out to a stellar lead, hit after hit so to speak…I will have to continue to learn to be humble, to move forward slowly and to make good and wise decisions from here on out, but along the way I promise to keep the sparkle in my eye for the game because however un-PC it may be to say it, the lady may be a tramp and she ain’t always pretty but I LOVE the way she moves!

Knock em dead!

dacuco

So, shut up already and tell us what happened!!! Ok…ok,  I will!

“Oh, my, my, my,” said the spider to the fly!

Is this company for real? Is all this good news for real? PGYC, the hold over trade from last week was uppermost on my mind and the agenda. It was chosen as pick of the week by the TAM group, so all eyes were upon it and me from the moment I checked in to the chat (or at least that’s how it felt) No problem, I’m a big boy and this is a good pick! Well, prior to the opening bell the Market Makers started steadily adjusting the price per share up, until at the opening bell it was already at $0.074  The race was on or so I hoped, you might remember I already owned 1750 shares of this stock at an average of $.056 per share for the TAM game, so things looked great. I could have hit the button at that first second of the market open, sold and been up 23% immediately. Wow, too easy this is great!  Now this was a hold over from last week so had I sold it I would have been a winner for week #2 with cash in the account in the morning and prepared to move forward with another trade.

The price upticked again…to $0.075 unbelievable everything is going just as planned. My sell is already setup and ready to go at $0.11, for what would have been IMO a not too greedy 83% gain and just then… it ticked down, and ticked down, and ticked down again, until finally it was obvious this was not going to be a quick runup and jump out of it kinda trade. DAMN!

Then the 20/20 hindsight in the room begins…and I begin to here those familiar tomes of, this stock is a piece of sh_t, very risky, lousey pick, etc. etc. you know what I mean, but that’s ok because this is a weekly pick and as such is not meant to perform the same way a day trade does…we have a full week for this trade to be successful. I wish it had moved up 100% in two minutes so everyone could get out with their instant karma profit, and it’s certainly gravy when they do just that, but that’s not necessarily what the TAM plan is set up to do. Never mind the fact that anyone that had paused and waited for just a few moments would have realized that they should probably wait to buy, many didn’t and ultimately got in a little high. The lesson here is watch and wait, PGYC could have been bought on the drop and sold as it rose again, as it ultimately did several times, and anyone could have easily made 25% on the trade for the day. But let’s not get off track.

I still believe this will turn out to be a very lucrative and successful pick for the week but the bottom line is I should have sold and I didn’t. People are uncertain if all of the news swirling around this stock is legitimate and until they’re secure in the belief that it is, this stock will continue to flip around close to where it closed today, probably somewhere between$0.04  $.048 If this company can prove it’s assertions this stock in my opinion will soar, if not down we go from here!

So because I held this for another day I chose to sell the other stock I was holding for the game, WGAT for a  -30% loss to free up some capital and have it available in the event another great trade makes itself available.

I’m not sure at this point if PGCY will turn out to be the spider or the fly but I sure as hell know I’m going to work much harder at not getting tangled up in my own web!

Hope to see you soon with a kick butt report on how well this all turned out…after all I’ve got my lucky picking napkins and my lucky trading buddy jaun so it’s pretty much in the bag!!!!!!

Knock em dead tomorrow!

dacuco

Welcome back!

In my last post I reported I bought 1000 shares of PGYC @ .074 which proceeded to drop like a stone, settled down for a day and dropped again even further. So a decision had to be made! There was the typically expected amount of ecstatic exuberance, caution, fear and bashing  emanating from the boards and chats but it was a little different this time. It was a little harder to discern because of the onslaught of very positive news and PRs that had steadily been released over the last week.

So I have to ask myself why is this stocks share price diving? Is it just normal profit taking from an issue that has already had an impressive 435% increase in pps in the last few weeks? Is it fear from investors who possibly perceive that they have been burnt by this company somehow in the past? Is the information release about the potential buyout unverifiable and as such just forward thinking on the part of the company? Is this a pump and dump that has just run out of push? Is it possible the the Market Makers are just shaking the weak out to collect their shares at a cheap price so they are prepared for the big runnup?

So what do I do? Well of course… I’m going to buy some more! LOL So for the game I did just that and bought more with the little amount of money that was still available to play in the TAM account,  750 shares @ $.033!

I now currently own 1750 shares for the TAM game @ an average price of $.056

Tomorrow more decisions will have to be made about where to exit, but those will depend on the direction this stock moves in the morning. You see this company has announced that it has received a formal all cash purchase offer for all of the shares of the company at a price of $0.42 per share in addition to a special royalty unit. The record date is May 22, 2009 and shareholders of record at said date will need to tender their shares to receive the quarterly royalty payments of $0.02.

So Dream or Scheme?

If it turns out to be a verifiable transaction the stock price should rise significantly advancing my position to well above my goals of 10% net profit for the week. If not it wall fall like a stone and I will have to make the best of  the situation. So I hope you will check back to see the outcome of this trade, as well as what the upcoming week has in store for our TAM journey together.  I look forward to your kudos and condolences as each situation dictates…they continue to drive me forward !!!

Lets get a win as the journey continues from the penny perspective.

Best regards and knock em dead tomorrow!

dacuco

PS Someone asked me if I really write my picks on a napkin and the answer is a resounding yes I do! I think it dates back to taking numbers on matchbook covers or a cocktail napkin and all I know for sure is it really feels right. Ask any true baseball fan and they can tell you the little superstitious quirks of their favorite player. Well…same for me because my picks always seem to perform better when written on a napkin. CYA

Picking them like Bogart...Old School!

“The phrase of the day for the game we play. LOL!

I don’t really have a lot to report at this point in the week. As like in most of your lives, my real world responsibilities took priority for the last couple of days and didn’t allow much time to trade.  This once again is a great example of exactly why I’m documenting this journey to a million, because most people do not have the ability to just sit in front of the computer and trade for a living and that’s not what this TAM game is all about anyway.

Remember now, as dull as it may sound, our goal is only to pick and buy a stock or two for the week, that will give us an opportunity for a 10% net pretax return, sell that stock and hopefully recapture the cash in our account so we are in a position to do it all over again the next week. Simple huh? Boring huh? No…In my opinion it’s just absolutely the easiest way to get to where we want to go! It is a plan that offers the course with the least resistance from our business, jobs or home lives. In my experience I have found it difficult to be an effective day trader part time. I have found myself rushing home and jumping into trades ill prepared and uninformed just because I felt like I might miss something or pulling the trigger on a stock to soon because I have to leave. For the record when I do that I usually lose!

Now I have met some incredible traders who are very talented multi-taskers that have no problem with what I stated above, but if you’re just a regular Joe or Jill trying to get your self to the million with a hundred bucks then you need a focused & steady plan and the TAM approach might be the one for you. I am learning to allow it to create a comfortable balance between home, work and trading. Having somewhat of an A personality that is no easy task.

OK, why am I babbling on about this…because I kinda did it again! Monday as you know I sold CNVC for a 29% profit which I rationalize, though a couple of days late, as being a win for week #1. By the way CNVC ran up 400% the very next day…remember me saying be focused, sell, take your profit and never look back? Well let me tell you that’s HARD to do when they run the next day!!!!!! Anyway I instantly took the cash that came available the next morning and jumped into another stock PGYC. I had to leave and wanted to make sure I got in so I pulled the trigger in the first 15 minutes (a dacuco taboo for anyone who’s been following along) of the trade day and low and behold I bought in at the very top .074 pps. PGYC proceed to fall to .05 and has pretty much remained there. Now I had hoped for a run that morning but I was aware that the real possibilities for profit with this stock won’t come until April 10th when the terms of a buyout are supposed to be announced. We shall see!

So there you have it:

STOP…don’t rush into trades take your time and if you miss it there will always be more.

DROP…don’t be stupid, lose focus and be re-active instead of pro-active or your pps will drop.

HOLD…Damn I hate holding but here I am holding two now WGAT & PGYC

I’ll keep you posted.

Thank you for stopping by and sharing the journey with me. I really appreciate it

Knock em dead tomorrow!

To A Million

dacuco

You see the the one thing I have found to be consistently frustrating is having all of ones game capital tied up in a stock and having to wait to sell it. As we find ourselves in the beginning working with a limited amount of money it is imperative to keep things moving along. It’s hard enough to stay excited about the small increases in the cash value of your trading account without having to deal with a stock that you’re stuck holding. In penny stocks that usually means painfully watching it tumble down to a frightening level for an extended period of time. Even worse there are a host of things that these little companies can and do fall victim to that can doom them forever…BAD, VERY BAD INDEED, but that will be for another post.

Now it’s true that these pennies usually recycle, meaning they’re hot and then they’re not and then they swing back around after a period of time and are hot again. So it would seem that the easiest thing to do would be just hold them until their value increase again…right? Wrong, in my opinion and here’s why. If you have stock that drops 20% in value and let’s just say you have to hold it two months, many times six months is a more realistic time span that you might have to hold one before a turn around happens, but for the sake of our conversation lets just use two months. For this example you have invested $100.00 in XYZ stock, 1000 shares @ $0.10 per share, your stock then falls $0.02 pps or -$20.00 and doesn’t move back up, so you decide to hold it. Meanwhile momentum, excitement and volume dry up and it just stays at that price (more realistically it will continue down further) but you believe that this stock is likely going to come back around and you’re willing to wait. So using this scenario you are tying up your trade money for two months to recapture your loss, move up and deliver a 20% or $20.00 gain equal to $120.00

I know silly but bare with me, the principle is strong.

Now you might ask how would I be better off selling for a loss? Well let’s see.

#1. If you had not fallen in love with that stock you might have invested your remaining $80.00, minus commisions, in another stock that was a runner and realized a 300% or $240.00 gain.

#2. You might be able to give yourself more opportunities to trade that $80.00 multiplying your gains several times. Let’s just say you gave yourself the opportunity to trade that $80.00 just once a week over the two months you would have been holding for a potential 20% profit per trade ie. $80.00 + 20% = $96.00 + 20% = $115.00 + 20% = $138.00 + 20% = $165.60 + 20% = $198.00 + 20% = $237.60 + 20% = $285.12 + 20% = $342.14

Now will it go exactly like the example above… of course not… but I do hope you understand the principle! Don’t tie up your money over an extended period of time trying to recapture an obvious loss. Instead consider selling and freeing up your money and in turn opening yourself up to the opportunities that present themselves on a daily basis.

So tomorrow besides having to make a decision on my next trade, I find it to be equally, if not more important to decide what to do with the one I am still holding from last week! I thinks it’s time to sell for a small loss…what do you think???

Oh yeah sometimes you will sell and the stock you just sold runs the next day,,,that’ll make you sick! So sell, move on and don’t look back because more times than not you will have made the correct decision!!!

Current standings after week #1

Completed Trades:
CNVC - SHARES BOUGHT: 35000 PPS $.0021 SOLD: $.0030 PROFIT: +29%/+$23 Amt Risked: $78 Amt recovered: $101.00

Still Holding:
WGAT - Shares: 300 Shares Held: 300 PPS $0.37 Amt Risked: $116. Last Bid: $0.32 Last Ask $0.335 Current Net Value: $92.00 Profit: -21%/-$24.

Great Trading and Good Luck!!!

Best regards,

dacuco