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Strategies & Market Trends : TATRADER GIZZARD STUDY--Stocks 12.00 or Less..... -- Ignore unavailable to you. Want to Upgrade?

To: Pullin-GS who wrote (624)	5/28/1998 6:14:00 AM
From: TATRADER	Read Replies (1) \| Respond to of 59879

Paul, keep up the fine work....I have some new indicators for you, if you are interested...Since you helped me with many of them, I would like to return the favor..They combine historical volatility with our old indicators....Below is part of chapter 2 in book dealing with Penny Stock Trading... False Prophets of the Internet A vacuum cleaner salesman. A phone call to your home. An offer to clean your living room and bedroom at no charge. Why would anyone be so kind? We know the reason. After the salesman cleans two rooms, we will have to listen to his sales pitch. The salesman will build the product up as the best vacuum you could ever hope to purchase. He will give us a deal of 50% off the regular price. Why are you and I nervous about purchasing a vacuum on the recommendation of a salesman? That's right. The salesman is going to make a commission off of us. He has a vested interest in selling the product. He is not just recommending the vacuum to us because he likes us and wants us to be happy. Likewise, the same thoughts can run through the minds of inactive church people when a clergyman comes over to their homes to make a call on them. They may think to themselves that the clergyman is just coming over to their home because it is his job and he wants more members in his parish. As we all know, the best way to purchase a vacuum cleaner or to join a church or synagogue is on the recommendation of a friend. A friend has nothing to gain by recommending a vacuum or house of worship to us. Thus, we would much rather purchase something or go somewhere on the basis of a friend's recommendation rather than anyone elses. In the investment world, there are so many ways to pick up ideas on a stock to purchase. You can spend hundreds of dollars a year on newsletters. You can listen to the confident words of a broker. You can read investment magazines. Unfortunately, many times, by the time you get the information on a stock from a newsletter, broker, or magazine, many other investors have already taken up their positions and may be selling to you as you buy. In my opinion, stay away from brokers, investment magazines, and newsletters. All these agencies, like the vacuum cleaners salesman, have a vested interest in having you buy the stocks they recommend. You would do much better by getting your initial picks from real friends on the internet in such investment bulletin board sights as Silicon Investor or Motley Fool on American Online. Warning: Be Careful who you choose as your friends. Make sure they are really your friends!!! There are many false prophets and hypsters on investment bulletin board sites. You will need to test these people to see if they are hypsters or false prophets. How can I know if someone on an investment site is a false prophet or not? Here are some signs. 1.A false prophet is very knowledgeable about the stock he follows and is always bullish. 2.A false prophet frequents only one thread on an investment bulletin board, or may follow a group of stocks from a certain sector...(example, desert dirts on Silicon) 3.A false prophet will sometimes encourage you to take possession of your shares, to stop the Market Maker who is supposedly shorting the stock. 4. A false prophet tries to play the Market Maker as an evil force who wants you to sell your shares to him at a lower price. 5. A False prophet encourages you to hang in there as your losses mount. Stay on board the ship is one of their slogans... 6. A False prophet is receiving payment from the gods of the company, or has a large position at a low price in that particular security... 7. A False prophet has a following of people who praise him for his expertise. Many times one or two followers that frequent the same thread are personal servants of the False prophet. He gives them insider information, so that they can take up their positions before press releases occur. 8. A False prophet talks of future stock prices that are unrealistic. The prophet quotes prices of $20.00, $50.00 or $100.00 a share. He loves to play on your emotion of greed. 9. A False prophet has a group of Followers that are blindly loyal. Before they know it, the false prophet has dumped his shares while they are buying, and he then offers them up as a sacrifice....They are left holding an empty bag. 10. A False prophet suddenly disappears from a thread, and moves on to another stock, either under a new alias, or by the same title. How do I find a true prophet, or a real friend, who is not interested in himself or just promoting a particular stock? 1.A true prophet frequents many different threads on a particular investment bulletin board, or talks of many different stocks... 2.A true prophet can be both negative and positive on a stock. 3.A true prophet is retired or has another full-time job 4.A true prophet shows a humble spirit, and is always trying to help out others. 5.A true prophet is right 60% of the time on his picks and wrong 40% of the time. Regards, Mark P.S. Remember, one only gets ideas from a true prophet...He never buys a stock because a true prophet says it is good...One always must have their own set of guidelines that the stock must match before one entertains entry....