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Microcap & Penny Stocks : ASK: "THE LAST DON" OF MOMENTUM TRADES -- Ignore unavailable to you. Want to Upgrade?

To: HandsOn who wrote (515)	12/8/1998 9:52:00 PM
From: MoneyMade	Read Replies (1) \| Respond to of 15987

9. LAW OF LOSERS. Oddly, those most attracted to speculative markets are failures in other aspects of their lives. They may be wealthy, but consider themselves, in some way, as having "failed." Medical doctors are prime targets of stock promoters, as they are not only affluent may have "settled for less" in their lives or feel they "are owed more" for the work they do. Whoever has failed, in some key aspect of their life, often tries to make up for it by gambling....often speculating in these markets. The loser is always trying to compensate for a failure in another part of his life and continues to heavily lose as a speculator. (Note: I stay in touch with certain losers and use them as a yardstick for my trading -- when they buy, I sell; when they sell, I buy. The loser has a knack for exiting his position, a day or a week before a major runup; or he/she simply always buys at the top of the runup. The downside to communicating with losers is that they are so darned indecisive and fretters; their worrying can and does rub off and creates a confusion for oneself.) 13. CANADA'S BEST KEPT SECRET. Many Canadian speculators don't pay for their stock. These Canadian speculators bet on stocks, against the equity in their account. We've heard about T-3, etc. That is bull. The truth is often, more like T-12 or T-20 (as in 12 or 20 days to settle instead of the required three days). Brokerage firms have been known to extend, to their best clients, the time they can hold "unpaid stock" for weeks. What is also not very well known is that brokerage firms can, and frequently do, short sell any stock which remains unpaid (they do so to protect themselves). Thus, during an exciting runup, one observes (or hears about) massive shortselling of a stock -- the stock wasn't paid for, so the brokerage firm shorts it. A brokerage firm's credit manager can quite excitedly extend your "credit terms" so that you have "more time to pay for your stock." Essentially, you end up betting against yourself, under these circumstances, because the brokerage firm is shorting your purchase. Later, you end up selling at a loss and the brokerage firm covers at a profit. The house nearly always wins. Your stockbroker gets his commission whether you lose or not.