penny stock ratings - tag category postings

From now on whenever I talk about a specific penny stock I will make a habit of giving it a specific rating.  These ratings are not scientific or system generated.  They are ratings based on my own personal judgment and criteria I have learned to use over the years.

Of course it goes without saying that just because I give a penny stock a certain rating does not mean it will perform exactly as the rating suggests.  The exact opposite may occur.  Again, this is my own personal judgment and I have been wrong plenty of times.

So why use penny stock ratings ?

I just think it helps me to quantify what I am looking at and helps as a point of reference if I ever want to check back from a historical context to see if I was correct or not.

The extreme swings and variability of penny stocks may make this ratings system somewhat irrelevant, but I am going to give it a shot anyway.

The ratings system will be from 1 to 5.

1. A rating of 1 means that the penny stock has most if not all the important factors I like to see in a penny stock that lead to a good future price move.  This is going to be an extremely rare rating because it means that we are dealing with an very good penny stock setup with good to very good probability.  Very good and highly probably penny stock setups are in my opinion quite rare.
2. This is second best.  The setup is good, but is lacking in some area that just does not make it to the top of the list. It may be one or several criteria that keep this penny stock from making it to the top of the list.
3. This is an average rating and right in the middle.  It means that my opinion of it is neutral and I don’t expect a decent move soon or even at all.  It might happen but it probably will not.  A 3 rating means indecision.
4. This is a ‘bad’ penny stock.  I don’t expect any good move soon or in the near future and I expect it will probably continue in a downtrend or be sloppy poor trading action.
5. This is the worst penny stock and is very questionable.  It probably has very poor liquidity and a very poor chart that should be avoided at all costs.

So there you have it.  The penny stocks penny stocks dot com rating system.  There may exist a certain contrarian element in this rating system as well because sometimes I have qualified certain penny stocks as having very bad looking chart, only to see them take off and turn into a super running penny stocks.

So again, this is my judgment and opinion only.  Another pair of eyes may see something entirely different and of course opinions are always welcome here.