Hi Guy, I'm glad you liked SPAB, thats going to be a huge moneymaker. NTWK is too, just getting started. I play each stock like a poker hand. The objective is to take either the daytraders or shorts money. And at the same time, stay in a NO LOSE situation... a situation where you either are going to make money off shorts OR off daytraders... with little or no risk at all!
You've got the dealer(market maker), insiders and shorters
at the table, see. And the idea is to get the "look it just popped" daytraders over to the table and take their money. Without daytraders, theres so much selling and shorting, the stock never moves anywhere. Now after taking the daytraders money, its time to take the shorts money. I come into every play like its the preverbial poker game and you try to figure out who's the sucker. And of course if you can't figure it out, its YOU! The key is to watch how the insiders play.
TO TAKE THE DAYTRADERS MONEY
Now you can't get too many daytraders to play without a "story" to go along with the pop.
To take the daytraders money, the trick is a huge amount of DD to grab the stories before they happen and watch how the insiders play. I like story stocks because the daytraders like story stocks, no other reason. Thats like NTWK and SPAB playing now, and KDSC, MTMC and CNLG played last week. Once the daytraders start playing and the pot grows, the trick here is to watch the shorts and see when they go all in- thats when its time to GRAB THE POT, because the short has everything to lose. Some of these pots are getting pretty big too, because the shorts have been getting burned recently on quite a few- especially the low floaters! Now KDSC there was a crooked pink-sheet market maker, so that caused problems from the get-go, on NASDAQ you usually don't have that problem.
TO TAKE THE SHORTS MONEY
Over at HAXS a few days ago, I see a table there... the insiders aren't playing, the daytraders just left, so alls left is one big short feverishly playing hands trying to cover about 500000 shares he just shorted. And I see he's having trouble, because the insiders are standing pat and he can only cover 5000 and 10000 at a time with the daytraders gone... so I see he's getting nervous, and he'e in trouble. So I step over there with a bag of chips at $2.46, almost the only one to buy in that day, and I call him. Turns out he was bluffing all the way, and I take him out at $2.95 yesterday. He's still over there- I'll wait til he gets it back down to $2.25-$2.50, then take some more money.
eom. |
