Re: "OTC Magic" ..That's a good write up, but just keep in mind.....
posted on
Aug 24, 2012 09:11PM
Informer, its seems to me that the share accummulation is done on the lows.
After seeing this stock perform (probably longer than most) I have seen a pattern where small trades are done.
It appears that one entity places a sell at a low price, another "Friend" of the entity buys them at a low price.
Which is how the price suppression is done, and its rampant on penny stocks.
This is how they accumulate shares:
Average Investors are taught to place a stop loss usually at a 20% drop (Schwab and others) to protect their money in case of a massive sell off.
But that strategy is great for Nasdaq stocks....NOT so for penny stocks.
Because the day traders sell shares to themselves drive the stock price downward 20%
trigger the 20% Stop Loss Sell orders and accumulate shares and at the same time earn an average of 30 to 50% profit....daily I might add.
The bloody vampires suck the life out of most penny stock companies and if they do not have a good strong product, with a good life expectancy usually they go out of business within 3 years after entering the market.
They usually come on as white lambs having "Investors Hard Earned" money in mind, but are werewolves in sheeps clothing.
When I hear somone saying that they have everyones best interest in mind its sends all kinds of red flags in the air, since I do not know them, yet they care about me?