LOL.....Been trying to keep up with the board and picks and winners and etc.....
I had mentioned this before, but will mention it again...this is an awesome idea for a board, but under the current format it really is quite misleading.
As we know stocks close at a certain price..could be on the ask, could be on the bid, could be inbetween. However, what I notice, since these are all micro companies is the winning stocks and the % rises they show are not even remotely true. A stock that closes on the ask, but has a bid 30% lower, very obvious is not 'up xxx%'. The value of any stock is the value that it can be sold.
Once again, this stock board is a great idea but it really is miselading because most of these stocks are not seeing these gains..they are not 'true'. If I pick a stock at .0001 and it closes on the ask of .0002, I am UP 100% and likely a winner...but that stock did NOT go up 100%- it can only be sold for .0001, meaning it went up 05, not 100%.
Many of the stocks picked here follow the same pattern..they show large % gains, but they aren't 'true gains'.
IMO, To show true and proper gains/moves in a stock, I think the price of said stock should always be whatever the BID is...NOT the closing price. By using the closing price, this contest might be fun, but it really isnt true or accurate. I have been looking at the stocks and the winners and the %'s UP they supposedly had....probably 80% or more did not really see those % gains..they closed up, say 50% so they are 'a winner', but that very stock may have a bid that actually shows if you sell right then, you will not get that 50%, you'll get far lower..maybe 0% gain or even a loss. With the wide spreads between bid/ask in micro world, the closing price means nothing and judging 'winning stocks' on the closing price and not the actual bid that the stock can be sold for, makes this fun, but not accurate and maybe even deceptive...people read and see such and such stock up a large %. What they dont realize is the stock may not be up at all..in fact, it might actually be down..if it closes at the ask of lets say stock abcd has a bid ask of .005/.008
It closes on the bid of .005- somebody picks that stock for the contest for the next day and it closes on the ask of .008, showing what looks to be a very, very nice % one day gain....and it becomes a winner, showing a very nice gain..but in reality, the stock has not moved at all....it has been at .005x.008 for a long time.....
IMO, to make this more then just fun, but also a legit tool to track micros that are actually making moves up or down for real, you cannot go by closing price.....it should be based on the bid, imo......As I said, great board, great idea..but right now it is more of a game, that doesnt show true up or down moves..it does on some, but as I said, probably more then 80% are NOT making the moves that are posted. They are simply stocks with wide spreads and if a stock closes on the ask, not the bid, it will likely show a nice % move UP, when in reality the bid shows if you sell, you will get zero % gain or maybe even a loss.
The only true way to make thise useful, instead of just fun, is to only go by the bid of each price picked......if that .005x.008 stock closes at .005 and the next day closes at .008, but bid is still .005, not one penny was actually 'gained', as it still can only be sold for .005, not .008.
So my opinion is to change it to the clsing BID, not the closing price..
Now, if this contest is just for fun, no prob....fine as it is...but if people really want to pick winners and actually see true winners and losers, the current format is very deceptive..it shows most stocks up a large % when they are not really up.....to use this as useful tool, stocks should be based on their closing BID.....
One reason I dont ever make picks is because I could do so and win ALOT, but I am not really winning...in micro world it is far too easy to find stocks that 'appear to be up' a nice %, but in reality they are doing nothing...Pick any micro with a decent % spread and if it closes on the bid, pick that stock...when it closes on the ask, you are a winnder showing large gains in the stock you picked, when in reality, the stock has done nothing except closing on the ask, instead of the bid.....
Just my opinion...as I said, I think this is a great idea, but under the current format, many of the stocks that show these gains, are not really seeing those gains..again, some do...but far too many are simply micros with wide spreads, not moving all that much and simply clising one day on the bid and one day on the ask..there are quite a few stocks that have been multiple winners......stock abcd has won 3 times a week for a month with 40% gains everytime it wins.....yet after that month, the stock is sitting at the exact same price it was at a month earlier, so it did NOT see 40% gains 2 or 3 times every week for a month...the gain is ZERO, but the contest shows a stock that went up 40% 12 times in one month, yet that stock can only be sold for zero % gains or even a possible loss from the price of one month ago....Pretty big difference between 120% gains a week for 4 weeks, showing 480% gain for the month, when in reality the stock has not gained 1%, and may even show a loss........
Anyway, no biggie, just thought I'd chime in as I notice a very large % of these stocks picked show huge % gains, that are not true.....again, some are actually going up, but a far larger % are showing these huge 'paper/posted' gains, when they are not up zilch.
Just my .02 worth..... |
