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Strategies & Market Trends : The 56 Point TA; Charts With an Attitude

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To: Linda Kaplan who wrote (2938)9/3/1997 1:27:00 AM
From: Trippi   of 79378
 
Linda

The DSIB effect -- exhibits the following characteristics:

1. The stock is named publicly and people are urged to grab it up fast.

2. The day it is named the stock shows unusually high volume
(after all we all had to get on board as soon as possible)

3. The people who name the stock invariably buy the stock before
they name the company publicly and all most always sell without
saying that they have sold.

4. Solid price targets are almost always lacking -- this allows for declaring the stock a short or long term play depending on where the price goes.

5. Those who express doubts are ridiculed beyond belief.

6. Stocks that are named are almost all in the $2 range a few in the $6 to $8 range but never much higher than that -- the lower price means higher volume when the lemmings buy. $5000 buys only 500 shares of a $10 stock but 2,500 shares of a $2 stock.

7. A new system is declared -- but for some reason Peter Lynch and companies and wealthy individuals with millions in research and computers haven't found it.

8. The pickers of the stock -- spend countless hours "volunteering their time" when actually they are making more money than the lemmings who always end up buying and selling after they do.

9. When questioned too much about their practices -- the practioners
get brash and indignant and declare they are shutting down.

10. It can get particularly wierd when guest TA guys are handed the
blender and are declared near infalable as well.

HOW TO PLAY the DSIB effect:

1. Do not go out and buy the stock mentioned -- let the lemmings flood in. In almost every case in a few days the stock pulls back to where it was or nearly where it was. Use this time to do your own
research -- if the stock looks good but moves away let it go. If it pulls back as expected after the DSIB effect and your research tells you its a buy -- then buy.

2. Do not wait for the big win -- in this game he who gets out early with a profit wins -- the last lemming always gets killed.

3. Do what they do. People come on this thread with great stock ideas and bow at the blender's altar. Take the stock and do your own research -- if its a good idea -- don't wait for the blender god -- invest. If they see what you see and name your stock ride the DSIB effect till the wave starts to wane.

TPRO is an excellent company with a great CEO -- I think we will see
$10 near term -- but the stock could see much much higher levels as contracts are signed and projected revenues become publicly known.

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