RE: RE: RE: amazing re: Blue chips vs. penny stocks........Because penny stocks are more volatile and unpredictable, you gotta have rules and stick to them. My number one rule is only buy on pullbacks, especially if a stock goes up more than 40 % in a few days. For instance, SBM went from 0.085 to .13 in 4 trading days in a row. That's 53 % in 4 days. That can't be maintained. Sure I might miss getting in early, but my downside risk is limited if I wait for the pullback. If there's something to the stock it will establish a support level, hopefully at or slightly below my entry price. Ever since I stuck to that rule, I've been making money.