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Microcap & Penny Stocks : Trading 101

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To: Shashidev who wrote (39)	3/14/1998 11:32:00 AM
From: Ga Bard	Read Replies (2) of 406

SHA I agree ... when I day trade I take my inital as soon as I can or just dump the damn thing. As far as holding long I have the DD to support that position. Now in the past I also was a trooper and believed all the short trap senarios which by the way is nothing but ranting and touting. I fell for the news letters touting stock to great heights to again only lose. Then the infamous emails, boy talk about a bath. I have lately talked, as I did once before, about BTS stocks and momentum picks and I will learn to shut up one day and just do them quietly. Now the new thing is emails. People seem to forget when an email or news letter comes out EVERYONE knows about it. A pop is going to happen. Underdog came out with CCGI and it ran from .625 to 1.03 in less that 15 minutes then dropped back to .75 in the next 15 mins. Always be careful of what you are doing. I tried to buy at .625 and it took off. Oh well I did not trade it.(note: not invest mine you) Now once it stablizes if I wanted it then I would buy in if I believed the DD provided. With every email there is a small group that has gotten in first, I do not care who or what stock it is but someone got in first. Now the question is are they long or short. How deadly is the risk? Well gaps are caused mostly by market orders which is the first dealy sin of a novice investor. The Fearless Greed bug causes the mind to do things totally stupid. You find that you filled at the highest point possible but hey you got filled. All the MMs have to do is fill at the size they have established and if they want to they can raise it quickly. If a market order is setting there and the size limit has been filled they take it up for the next market and on and on. Then once the markets orders, which are required to be filled first, are finished they go back and start with the limit orders walking it back down. Now this causes a panic and then the Fearful Greed bug causes a market order sell. (PMS) Panic Massive Selloff. Well here we go in the opposite direction but on even less volume. Now most emails there is a buy in prior to the email. Then if you track certain individuals you discover it is all over day traders. Well day traders are buying with the email sheep then it gets to 30% and the day traders start selling against the buying. Once the day traders get out then it can go forward but usually they kill the momentum. Well you have some of the email people going what happen and stuck at the top. Day Traders could careless about what the stock does. Now I day trade I grant you. I momentum also. I BTS on those I have the DD on and go long on those I feel have a dang good change of being bought and getting off this board within one year. And not by internet buying but by real world retail brokers buying. The internet is a problem because it is a race to get in and a race to get out. The professional financial people never can figure out the internet because of what is called the wave. The best way to describe the wave is go out into the middle of a busy street where everyone is just doing their thing. Window shopping, jogging, girl & guy watching, people doing whatever and minding their own business. Take say 1000 100 bills and go to the center of the street and yell "MONEY!!!!!" then throw the money into the air. Forget about leaving just stand ridged and wait for the money to fall down. The massive rush from around you will be unbelieveable people fighting to get a portion of the pot. Those the quickest get the most and walk away profitable and those that were late are frantically looking for another opportunity. Waiting for the next toss. Welcome to a momentum rush. Now the man (stock) who threw the money is now noticed while he stands with another hand full of cash. Greed keeps you there waiting for it. You have no idea why you are there except waiting for the toss. Sometimes the man leaving and you hang waiting for him to return. I know that is bizarre but it serves the purpose to explain the mystery of the internet wave. Now the problem is some folks get so nailed they will not look at a long hold position in this arena and that is way it has been since the OTC began. Recently there is a war for the email followers lists. People slamming the email leaders (Shepherds) for the herd of emailees (Sheep). Kind of like people wanting control of the unions NOT for the members but for the pension fund. The new thing on the internet is to get a following or rather get more people on your email. I am so livid with this email picks crap I will not associate myself with one and I stopped mine months ago. Just wait ... next will be another way to sell themselves to get a following you watch. If you are going to buy do in on DD and if your momentum or daytrade keep it to yourself. GB As much as some stocks I dislike they will get off the OTC arena because they are loved so much.

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