Small OTC stocks are a pyramid scheme, a sucker's game. The guy who spams you/gives you a hot tip/posts in the Yahoo! boards/whatever else he does to convince you to buy/ is actually the guy you will later be buying stock from. Think about it. If there is no volume and this guy's holding, who are you likely buying from? He's taken a large position at rock bottom, and is scaling out as he pumps it up. It's easy money for him, as long as he can sucker someone else into paying more than he paid for the intrinsically valueless shares. If he can't, he's screwed. But if he's a good salesman, and persistent, he can, since there's no shortage of greedy newbies looking to $$Make Money FA$T!!!$$ in this world. And then it's easy money for you, as long as there is an even bigger sucker out there who will buy your shares. Eventually someone is left holding the bag (The Greatest Sucker Of Them All), and that someone, more often than not, is you. I say "more often than not" because if this kind of thing worked consistently for anyone but the lawbreaking pump-and-dumper who's in control of the whole deal, we'd all be doing it. But over time, your tragic losses will more than offset your lucky gains. With no liquidity, you might be wanting to get out for a week or two (or longer) before another sucker comes along to bite your hook and swallow the flaming turd you're offering. And if it starts crashing down, and you want to sell your shares to another sucker, good luck. You can kiss your entire stake goodbye. He's using you, or you may be trying to use us. Either way, I don't take part in other people's scams unless it involves two hot women with loose morals, a jar of mayonnaise and a scuba suit -- though personal experience tells me not to mess with that anymore either. p.s. If he tells you it's going to $8, you're wise to get out at 4 or 5, because he's told everyone else to hold until 8 (which is how high he thinks he can pump it before reality kicks in), and there will be a rush on to bail out at 6 or 7. Remember, it's a game based on greed and timing. Whoever gets out quickest wins, and the dealer holds all the cards. Whenever he wants to kill the game, he can. p.p.s. Do a search through the archives. I can swear I've written this post before. p.p.p.s. There's a sucker born every minute. Don't let it be you.
LoL. To be honest, I didn't realize there were 7 pages of dialogue and posted after I read the initial story. It wasn't until afterwards I saw the debate. I've been a member for a long time but have been away too long to remember how everything works. Getting familiar and marking subjects again today but didn't really want to splat in the middle of a controversy. Please excuse my ignorance ;o) Fwiw, I don't trade penny stocks anymore as a general rule though will scalp a cheapie (sub $5) on occasion if there is large volume and volatility. My best advise is to NEVER trade illiquid markets of any kind. Cheers, BD
well at the time i wrote the first post I wasn't gonna give any symbol figuring people would say what they been saying. Then someone asked for a symbol so I figured well if I don't give it then people will think I made the whole story up so I figured, hey why not.... I told everyone I was out and someone whats to see the chart so I posted one of the tickers. The whole purpose of the original post was to share a story and to ask how a stock can move so much on such little volume. The other stock moved 33% a day for like 3 days straight on like 20k shares total. I know moves like that happen everyday but the 20k shares was something I couldn't believe. I can see a million or 2 on a small stock but 20k??? I just didn't understand it...... I am just someone trying to learn how to daytrade. I work a 8 hour job and looking for a way out. I have always had a ambition for stock trading and seeing if I can be one of the few that can do it for a living. When the guy came to my table we talked for awhile and asked what he did and the answer he gave just hit my buttons. He said he was a trader and that is what I wanted to be, so I asked him more about it. Well enough about that, seems I have created more enemies then I would ever want to have. To the few that enjoyed my short little story.... thanks for the nice comments..... but as I said before..... ITS MY BIRTHDAY tomorrow and that means booze and sushi and gambling ... Now if I can just learn to daytrade, life would be so much better. ITS THE BIG 30 for me if anyone cares :eek: ... Happy trading everyone
Happy Birthday! Now for your present ;o) Loosing a wad of money seems to be part of the process of learning to trade. Daytrading is especially difficult because you have to stay completely focused and disciplined the whole time you're exposed. That doesn't even count the years it takes to hone technical expertise. My advice is to try to get a job where you can use other people's money to learn to trade Any large brokerage firm should do. lol.. Seriously though.. enjoy the sushi and your big 3...0.. You've still got another 10 years before parts begin to fall off
So, what's so wrong with penny stocks? Didn't most companies start out as penny or low-cap stocks? What's wrong with pump and dumps? Isn't almost everything in the markets pumped and dumped at some point or other? I'm glad that people question other's posts; it's good to be cautious and warn others. At the same time, I know that people are often jealous of other's successes. So, I'll take every side of this issue with a grain of salt.