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Microcap & Penny Stocks : TSIG.com TIGI (formerly TSIG) -- Ignore unavailable to you. Want to Upgrade?

To: Martin E. Frankel who wrote (8670)	10/25/1998 12:42:00 PM
From: Dixie7777	Respond to of 44908

There are various *services?* that purport them selves as early warning signal providers to stock price movement. They state that they are *Momentum* traders. *NOT!* They will charge you a very hefty fee to join. Then they elicit information from you, the member, so as to provide their?? service??? to the membership. Kinda like a circular reference in a spreadsheet for many of the members. For the most part they call themselves momentum traders. Momentum traders by their nature work in the markets and actually create some kind of order. Liquidity. Working as *individuals* that is. Now if you can envision a large number of momentum traders working in unison, I'm not so sure that you would be able to call that momentum trading. More like musical shares. *Mob trading!!* If you're the odd man out, and there will always be many of you, then you've been hurt. That leaves you wanting to win the next time and thereby hurting someone else. And so on and so on…. Certainly not investing, certainly not a day trader and certainly not a momentum trader. Gambling with a video game. Oh, and by the way, before these so-called services/individuals make their recommendation for their membership to buy, you'd better believe that they have done significant *front running* and acquired many shares that they will be selling into their so-called rally. Additionally, it's been reported that only certain of the so-called membership have been e-mailed the right timing and the right price of when to sell and abandon a stock. Different timing and different pricing have been given to the membership at large. All others are essentially on their own. Some of those will win and *most will lose.* While the market itself is a net sum game it very much favors those that do good/great DD. While not always true, the majority of companies will trade in concert with their fundamentals. Unfortunately, usually not so with companies under attack by the so called momentum traders *working in unison.* They can run the share price up to substantially overvalued status only to abandon it and watch it fall into the sewer. At that point, even when company fundamentals indicate a good investment, the market at large will view this equity with great caution. Thereby *artificially* suppressing the share price, hence suppressing the corporate currency, hence suppressing the potential for corporate acquisitions, hence a self-fulfilling low price destiny. These people/services? not only manipulate money out of others pockets into their own, but they have the ability to severely hurt good companies and their attendant employees. And they remain *anonymous.* OK you say, why the lesson in market manipulation? As I peruse the various message boards here and at RB, and at Yahoo, I now notice *banner advertising* for some of these services targeting several of the stocks that I follow. I thought it would be imprudent of me not to bring this to the attention of the board at large. While momentum trading has been with us for a long time, *beware of mob trading schemes.* Don't confuse one for the other. There will always be more losers than winners. Rich