Protege, my comment should have said. . with Regular stocks, you buy the rumor and SELL the news, but by contrast, with OTC, you buy the news. Keep in mind, that BOTH statements are sweeping generalizations.
BAMM, EGGS, MALL, DLIA, SIEB, or most any internet e-commerce. . .if you had SOLD the news. . .you would have been pulling your hair out, as most topped out AFTER the initial announcement of a ecommerce website.
On the other hand, with OTC stocks, it typically takes a day or two for people to see the news and a stock to start making substantial gains. . .and depending on how fast the word is spread, it may take weeks before the stock comes near its peak.
It is just my opinion and experience that with the BBs, more people buy after news is released than sell.
Now if a rumor is pumped thru newsletters and spammed all over cyberspace, it might be wise to sell ANYTHING when the news hits. But that is generally not the way it works, IN MY OPINION.
My guess is that if you ask 10 OTC traders how it works, you will get 12 different opinions. . .
I just spent an hour discussing momos on the Whiz Kid's thread, trying to get people to recognize pump and dump when they see it. . .I doubt I got thru to many. . . too many dollar signs in the eyes.
Rande Is |
