Friday, 18 March 2016


Since the financial crisis in 2008 and a mini crisis in 2011, SGX mid-cap stocks have decline substantially. But instead of letting them recovering on their own, SGX introduce this MTP 20cents rule for PENNY STOCKS by requiring them to consolidating their shares above 20cents level. But this artificial inflating of price has killed many retailers facing a loss of their share price prices after consolidating. Many penny stocks have go into the SGX WATCH-LIST thus it is with important that they have to work hard to improve their earnings and stock prices.

How do we differentiate the penny stock from one another? To trade a penny stock, we must know why is the stock price trading at this level and make comparison with other penny stock in the same industry. Which is better? when we see the Price Action and Volume created. We do not like those PENNY stocks in a downtrend environment and favour those with an uptrend basis. It is important to find those penny creating new winners at each level so the atmosphere is 'HAPPY', creating confidence for the PENNY Stock to go higher.

We must also know the risk involve when trading PENNY stock as the movement can be considered VOTAILE. Once we understand the risk involve, trading in Penny stock can be comfortable for everyone. So far to date, we have spotted one PENNY counter with the potential to go higher with a happy confidence environment. We have already mention this stock in our blog at the start of the WEEK. So guys let hope the market continue to improve, spurring confidence.

No comments:

Post a Comment