China HongXing – Swinging in the channel?

China HongXing demonstrated a similar trend like Synear. Today the stock closed at $0.25 with a gravestone doji (end of the short term up trend) where the bear tried to push the price back to the channel. If the stock price returns to the channel and starts the retracement,  I will target to enter the trade at $0.21 and exit at $0.26 with a profit target of 24% within a two weeks trade.

My swing trading plan for Synear

Finally see sign of retracement of Synear after the stock price closed at $0.34 today with a black candle. My timing was perfect in the last cycle when I bought Synear at $0.275 and sold at $0.34, making a handsome 21% profit in 6 days!

I predict the stock price will retrace back to $0.30 stay and inside the channel. My next swing trading plan is to enter the trade at $0.30 and exit at $0.36 with profit target of 20%. Wish my prediction comes true!

Are these penny stocks really cheap?

Today penny stocks occupied most of the top 30 most active stocks spots. I took a quick look at those stocks I highlighted in red (e.g. Digiland, Unifiber, Infinio, Sapphire, etc) and found that most of them are losing money as expected. The stock price looks cheap (only a few cents) but in fact they are very expensive and risky. The upside of Rewards vs Risks is limited because the company is not going to pay dividend & the fund managers are not interested in investing in these companies, thus we should not put too high expectation that the stock price will go up. Anything can happen if the company is not making money because the company may go bankcrupt anytime, delisted or issue new rights (which dilute the stock price even more).

There are only two things will move the stock price, i.e. Earnings and News. The stock price will not move if the earning is bad or the company is losing money. Unless there is big news like Merger or Acquisition, win new businesses, company successfully launches new product, etc, don’t expect upside price movement which is sustainable for long term.

History always repeat itself, I am seeing people are making the same mistakes as mine previously and they are going to lose lots of money! I doubt they know what they are doing.