Share trading is all about cost. What price we buy determines...

Share trading is all about cost. What price we buy determines the profit in % terms.

Penny stocks have bigger swings. Good TA can reduce the cost by buying near trough selling near peaks, but it is almost impossible to capture the exact low/high. One also need to consider the cost of transactions. Penny stocks has bigger buy/sell spread than high-priced stocks, which means we pay more to buy and sell. These factors make swing trading less worthwhile if your TA skills is not great.

It is best to divide the fund into two parts: one for long term holding if the long term trend is up, another part for swing trading to reduce costs. This way we won't miss out the long term appreciation while using our TA tools to achieve better gains.

On a side note, below is the chart with my proprietary RSI (blue line) in comparison with traditional one (red). It can be seen new RSI offer more divergence than the old fella. At the moment, new RSI is pointing to a top divergence meaning a short term peak might be near if not already at. Traditional RSI is still showing strong momentum.

Let's see how it develops from here.