How do you define penny stocks in Singapore? Can I use the CSI Trading System for these stock ?This is common question I get. There is no precise definition . I will define it a low liquidity stock that suddenly have increase in volume over a period of time. The price is usually low, below 0.20. No, I dont use CSI Trading System for these stock. Some of my students do it but I don’t do it personally.
As I write there , a new batch of newbies will choose these stock for a punt. They think they can get in and out fast. Most of them if not all will get caught eventually. It is call pump and dump. They will pump the stock to draw the retail investor in and finally dump it a high price.
There is not easy money. If you have bought them previous run, you may consider to use rally to sell to cut loss at resistance.