Hi there Andrew ... Long time no talk ... That write up is specifically for CBQI as I have followed that stock for over a year. I have accumulated, worked for them for cash and stock options (Had to quit becuse of arguing on line)and even brought them deals by paying my own expensives, etc.
I am not like the interent because though I agree with you only about 3% of the OTC are a long term consideration. Most are nothing more than momentum and day trading stocks. However I have my longs and I mean I go long for investment purposes. AVBC I have had since 1997 for example in my daughters name for her college education.
You missed some key players/factors in the equation of trading on the OTCs.
Not only the MMs, newsletters (Paid or front loaded), promoters (paid in $ or stock), Online P&D, the traders, the investors, the shorters, the bashers, the corporate insiders and major shareholders, dumb money, public opinion, there is the integrity degree of truth plus dilution by the company in debentures, 5 day average stock price repays, consultants (Non-promoters), Off shore accounts, stock paid salaries, etc.
You are so right ... On even given day any combination of the forth mention could become a major factore in the equation of investing.
Liquidity also ... Because of most of these factors I track the one thing that kills the investors more than the MMs, the day traders, momentum traders, newsletters, paid whatever touters and that is the lies and dilution. However, a small float a day trader will not play because of the MMs filling both in and out and the volitlity of the stock nor will shorters because of the volitility nor the newsletters since they need large floats. The small floats you can track on the OTC T&S reports and the filings that are not diluting is what that write up is for.
IT IS NOT A STANDARD nor does it apply to all OTCs only a very few. SOme of it applies to all but small floats is where you can watch level II and the tactics.
I been trading for 3 Years and just when I think I have seen it all I see something different.
I like to find long term and like you short term and momentum wave for profits to invest for the long term. The industry, potential, integrity and all have to be in place.
I do not have all winners ... I have had some doosy losers.
Your questions ...
- If there were an electronic exchange for OTC:BB stocks as there is with Nasdaq stocks, do you think that any trader/investor would be any better off ?
Oh absolutely and make short positions have to be reported just like NASDAQ ... The OTC have no regulations nor can they gain brokerage or industry support. They are hampered by being on the OTC.
- With no MMs to manipulate the stocks in the manner you described, do you feel you would do better in your trading ?
Absolutely, for both the investor trader and the company.
However the MMs do have a MAJOR role in controlling the OTCs ... they are GODs on this arena. The only way an OTC is getting off this market to define itself as an invesment and not some BS Penny Stock that is always going to be a penny stock.
In so much as you statements I agree 100% ...
To succeed, IMO, you must:
1) Be a quick judge of mass appeal for a given stock (ie know something of human psychology)
and
2) Know thyself. (are you disciplined? do you know when to hold'em and when to fold 'em ?)
Most people do not and I belive neither do a ton of the brokers. The market is loaded away from the investor especially the unregulate OTC IMO. MMs can flat out refuse to fill or sit on the ask and just not take the call. When it takes 3 hours and 2 different phone calss just ot fill on an OTC stock it is always blamed on the MM. When in fact it could be the broker's clearing house.
As you should know I am very discipline I have my own system, my own math, and I do all my own DD and research. I rely on no one.
I appreciate your feed back ... but I call it as I see it.
Nad most people that have made money and found finacial success in the market are long term holders ... most cannot watch the tick tick tick of the market.
This arena is vicious and that is an understatement.
:-)
Gary
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