TGL WHAAAAAAAT! Alerts, thoughts, discussion. Message Board

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Microcap & Penny Stocks : TGL WHAAAAAAAT! Alerts, thoughts, discussion.

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To: SSP who wrote (85767)	6/2/2001 1:21:09 PM
From: Jim Bishop	of 150070

And this one from GA as well, and we sure have seen first hand and Live, the many times he's first with the news alerts. I have made bold some of the comments, hope GA doesn't mind. otcbbnn.com Trading the News By Giando Argentina Published by OTCBB News Network 05/11/2001 One of my favorite trades in the OTCBB is the news play. As many are aware, the news play consists of having a fast source for news and a fast broker. The object is to buy the stock before the majority of the other traders and investors have a chance to enter their orders. Although the news play sounds very simple, there are some things to consider before deciding on whether a particular stock makes for a good news trade. First and foremost is whether the news has leaked out already. I know the idea is that all the market participants should have a chance to view the Press Release at the same time, this is rarely the case. News seems to leak out on a regular basis, so the next step is to try to determine how many people this leak has reached. On occasion traders witness stocks have a 100% run up on a given day only to see a Press release the next day. It would be simple to deduct at that time that the news play is probably out of steam from the start. The downside of executing a trade on a news play that has already enjoyed substantial gains in the preceding day or so before the PR is that the buying from the news will probably be met with substantial selling pressure. The traders that bought on information of an impending PR will normally look to sell into the buying and lock in profits. Although many of the trades executed seem like buys at ask they are actually sells. Some traders make a habit of selling at the ask. If the Market Makers take the trade at the ask then the traders realizes the spread as gain as well. Something that I have noticed when I execute a buy at bid or sell at ask is a double print. In other words, if I sell 7800 shares at the ask the Time and Sales log will show two 7800 share trades back to back and vice versa. While certainly not fool proof it can sometimes let me know if real buying or selling pressure is present. The only way to know if a Market Maker will execute a sell at the ask is to try. This then brings us to the often-used phrase of Market Maker Manipulation. Investors often wonder how the stock they just bought because of a favorable PR is down ticking on a string of buys. It may not be Market Maker Manipulation at all. It may be the traders lucky enough to have advance notice of a PR are selling into the buying and ‘hitting’ the ask. This usually happens on stocks that have had a substantial increase in share price shortly before the PR. The news play can be very lucrative as a short-term trade. The content of the PR is also important, an ability to quickly scan a PR and be able to decide whether the content is of substance is key. A quick look at the chart to see if the stock has realized a sudden increase in price prior to the PR is also important. Lastly, let’s not be too quick to blame the Market Makers if our stock is not going in the direction we hope for or think it should go. There are other factors that move a stock and many times a trade at the ask is not a buy and a trade at the bid is not a sell.

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