Hello All,

There have been some BIG changes here at OTCstockexchange.

First thing is there is now a new editor/owner of the newsletter.

I have spent the last 25 years trading the OTC markets. I started
as a broker back in 1985 and have earned my living from the
markets ever since. There is not much I have not seen or done when
it comes to the OTC market.

In addition to the regular alerts I am also going to include
trading tips, tools, and strategies, that will allow you to cut
your losses sooner and book more profits.

I feel that education is the key to success in trading and hope
you will find this information both educational and profitable.

You will also notice that this email came from Aweber. Aweber is a
fantastic email delivery service and we felt we could get our
newsletters out on a more timely basis with this service. If need
be, please take the time now to whitelist our email address to make
sure you get prompt delivery and our newsletter does not end up in
your spam folder.

All my emails will come in text form. It is faster to deliver and
as we know hardly anyone opens pictures from people they do not
know anyways so I do not see the point of sending in HTML.

I do know a few of you unsubscribed to the newsletter in the
last few days while we were moving our service over. We are sorry
you received another email from us and all you need to do is
click the link at the bottom of this letter and you will be taken
off the list right away. Once we began to move services there was
nothing we could do.

Anyways, I am excited to bring you great stock alerts as well as
sound investment strategies that will help you put more money in
the bank when trading your stocks.

To get you started here are a list of my trading rules. Please read
them and follow them. I have been trading OTC stocks for 25 years
and put together these rules after much trial and error in my own
trading account. By learning these rules you do not need to make
the same mistakes I did and your learning curve will be much
shorter.

You should really print these off and keep them next to your
computer to review before making any trades.


************************ Trading Rules *****************************

Here are a few good ideas to keep in mind when trading penny
stocks. As you learn and use them you will begin to limit your
losses and increase your profits.

The number one rule is to remember that the penny stock market is
like the Wild Wild West. There is risk around every corner. Assume
everything you read or hear about EVERY penny stock is a half truth
at best. This market is filled with liars, cheaters, and thieves.

Most penny stocks will not be around two years from now in the same
form they are now. Most will have gone through a name change,
reverse split, and have new management with the next greatest
business idea that they are going to carry out. Because of this I
am never a long term player in these stocks. I am in most trades
for minutes to weeks.

PLEASE ONLY MAKE SMALL INVESTMENTS IN THESE STOCKS. NO MATTER HOW
GOOD A STOCK SOUNDS YOU NEVER EVER BET THE RANCH. PENNY STOCKS
SHOULD ONLY BE A SMALL PART OF YOUR PORTFOLIO. THESE STOCKS ARE
RISKY. PLEASE DO YOUR OWN RESEARCH. THESE STOCKS ARE NOT SUITABLE
FOR EVERYONE. DO NOT INVEST MONEY YOU CAN NOT AFFORD TO LOSE.

Having said that, I love this market. Nowhere else can you find
stocks that move so much as quickly as you can in this market. It
is those moves that give us a chance to earn big profits.

Follow these rules and strategies and you will learn how to book
consistent profits.

GETTING IN

Always use limit orders when getting into a stock. Pick an entry
price and stick with it.

Don't chase stocks. There will always be another trade right around
the corner. Don't beat yourself up if you miss one. The last thing
you want to do is over pay because you see a stock moving and think
you are missing the boat.

Never use market orders to enter into a trade. Using market orders
allows the market maker to fill you at whatever price they like and
leaves you vulnerable to getting poor fills.

IF A STOCK GAPS UP DO NOT CHASE IT. Most stocks that gap up
will come down during the day. (usually starting between 9:45 EST
and 10:15 EST) When a stock gaps up the market makers will usually
push it lower starting at this time to try to get investors to
panic and sell shares back to them so they can make a profit on any
shares they are short from filling orders on the gap. If you like
the stock and it gaps up you can usually pick up cheaper shares
when the market settles back.

WATCH THE OPEN

Watching the open is very important. You can learn a lot about how
a stock may act in the first 10-15 minutes after the market opens.

The first thing I look for is lots of selling. If you are watching
a stock that has an average daily volume of 50,000 shares and the
stock trades 250,000 shares in the first ten minutes and it isn't
moving this is not a good sign. This means there are lots of
sellers and they are probably only going to get more aggressive as
the day goes on.

You want to see a stock tick up on a regular basis as you see buys
come in. If you are in a stock and you see lots of buying and it's
not moving GET OUT. Don't wait.

KEEP YOUR LOSSES SMALL

THE SAFEST WAY TO DO THIS IS TO SELL A STOCK IF IT GOES BELOW THE
PRICE IN MY ALERT.

When you enter a trade you need to determine how much you are
willing to risk. Have a firm number and get out if the trade goes
against you.

Every big loss started as a small loss where the investor lost
control of their emotions and didn't close out the trade. When
you're an investor you are going to have trades that go against
you. It happens to everyone. Successful traders know how to limit
losses while unsuccessful ones do not. They begin to hope and pray
that the stock will turn around so they don't lose money and next
thing they know a small 10% loss is now a 40% loss. At this point
they begin to think the stock cannot go any lower and they hang on.

Now it's a 90% loss and they finally sell. Do not let this be you.
Put a line in the sand in every trade you do. When it gets over
that line, get out.

There is an order called a Stop Loss Order. These orders are put
below the current market and are triggered when a stock is on the
way down. A stop loss order is designed to limit your loss or
protect your profits on a trade.

NO ONE SHOULD TRADE PENNY STOCKS WITHOUT STOP ORDERS.

THE BEST PLACE TO PUT YOUR STOPS IS JUST BELOW THE PREVIOUS DAYS
CLOSE. THIS IS ALSO THE PRICE I MENTION IN MY ALERTS. STOPS SHOULD
BE KEPT TIGHT TO LIMIT LOSSES. 10%-20% MAX.

I SHOULD NEVER HAVE TO HEAR FROM A READER THAT TOOK A BIG LOSS IF
YOU FOLLOW THIS RULE. THIS IS THE SINGLE MOST IMPORTANT KEY TO
SUCCESS IN TRADING.

IF YOU DON'T USE A BROKER THAT ALLOWS STOP LOSS ORDERS, GET ONE.

Here is a link to ChoiceTrade they allow stop loss orders and only
$5 trading fees on penny stocks. Here is a link to open an account.

http://wfwsconsulting.com/choicetrades

SELL ON THE WAY UP

When entering a new trade determine beforehand where you want to
get out when the stock goes up. It helps to put in a sell limit
order in at the same time you buy the stock. Then when the stock
hits this price you are taken out and don't have to struggle with
wondering if it's going to keep going higher. Book your profits.

BE CONSISTENT

Get used to booking profits no matter how small. It may help to
learn to take small profits when you begin. There is nothing wrong
with taking 10%, 15%, or 20% profits on trades. This gets you in a
winning state of mind and makes taking profits much more of a
habit. You do not need to buy at every low and sell at every high
in order to make a lot of money in the market. You just need to be
consistent.

Everyone wants to hit home runs when they buy penny stocks but the
fact is most investors will lose more money hanging on for the big
winner instead of taking consistent profits. DO NOT BE GREEDY. This
will be the death of your trading account.

TRAILING STOPS

You should always use trailing stops to protect your profits after
a stock has gone higher. For example if you get into a stock at .10
cents and it runs up to .20 cents you want to protect your profits.
Some people will decide to get out completely and that's smart but
some of you may want to stay in the trade to see if it goes higher.
The best way to do this is to use a trailing stop. In my example
your stop may be .18 cents which means if the stock comes down off
.20 cents and gets to .18 cents your stock is sold. This protects
your profits. A mistake that many traders make is allowing a
profitable trade to turn into a break even or losing trade. Don't
let this happen to you. Use trailing stops. If the stock continues
to move up you move your trailing stop up with it to continue to
protect profits as you go.

Always book profits no matter how small. Put the money in the bank.

Follow these rules and you will become a much better trader.

Stay tuned for our next alert. Its coming soon.

Good Trading,

info@OTCstockexchange.com

WFWS Consulting Inc, 1900 Empire Blvd, #212, Webster, New york 14580, USA

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