Saturday, October 24, 2009

my opinion

The other day a friend looking at a penny stock asked about the company fundamentals, I had to pause because this guy is a religious trader of stocks and in that case the only thing that matters is the current volume and trend. See there two types of news, preliminary news and contract news. The first are the releases that you see where a company is getting something lined up, the later are the releases about actual signed contracts and dollars. The key is to be in the stock before the hard contracts are released that is when you get the most leverage. A perfect example is the release that was made by Carbon Jungle where China Agritech is wanting to meet to discuss the success they had in the trial with their organic fertilizer. If your a speculator looking for high returns than this is the time to jump. If you are averse to higher risk and are more interested in lower risk and lower returns than it would stike you to move after the contacts for product are signed. Its all up to you but if you are looking for sound fundamentals then look elsewhere this end of the market isn't for you, this is for players and traders those looking for high leverage.

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