I received a flyer in the mail a while ago for Hydrogen Hybrid Technologies, Inc., (Stock Symbol: HYHY). Flyers like these are common with penny stocks. Last year, I had received one or two that were pumping platinum. Had I jumped in at the time that I received this information, my investment would have tripled. This goes to show you that money can be made from following the advice of those people that are kind enough to include me in their mailings.
The HYHY brochure contains six pages of pictures and information that would rival any comic book. Read it once and you might become interested enough to check up on this company. Read it twice and you may put in a large limit order before you realize what you have done. These flyers are well produced and well circulated. No doubt that those behind this mailing have reaped a large reward already.
According to the company history page, Hydrogen Fuel Injection Technology is installed as an add-on to diesel and gasoline engines where it significantly reduces a wide variety of emissions while simultaneously reducing fuel consumption, typically up to 30%.
Hydrogen Hybrid Technologies has obtained exclusive worldwide rights to sell Hydrogen Fuel Injection technology to Original Equipment Manufacturers, as well as a non-exclusive right to sell the HFI technology into the worldwide after-market segments.
Take a look at the recent chart for HYHY…
I guess you could challenge anyone who says that nothing goes up in a straight line.
The Penny Stock Marketplace is certainly not promoting this stock in any way. The only thing we promote is making good decisions when confronted with information and a chart that begs the question, “Now what do I do?”
Whether this technology actually works does not really matter. As a trader, capitalizing on the hype and momentum of these high flyers should be your only concern. A successful trader always has a plan. Stick with it and you will come out ahead over the long haul.
Remember these rules:
Don’t chase a runaway stock. You may be kicking yourself for missing a 500% gainer but if this stock has real momentum, you can always get in after the next retracement. Throwing you money at this now may pay off, but before you do, remember the next rule…
Sub-penny, penny, and microcap stocks are for trading. We all know there are exceptions to this rule. Yahoo (Stock Symbol: YHOO) was trading for 77 cents back in 1996 and rose dramatically within a couple of years, but the fact remains that most stocks do not reach those heights…ever. Riding the momentum and taking the profits will allow you to trade another day.
What will I be doing? Sticking with my plan, I will whip out my Fibonacci calculator and wait for a solid 38% or 50% retracement from the top. Only then will I jump aboard the HYHY train.